QuickBooks seems advantageous for the nonprofit sector. It has been analyzed that the nonprofit sectors started more investments in software instead of hardware in the last few years. The main objective of this change is to enhance efficiency. Several Nonprofit companies use QuickBooks to perform financial tasks. However, setting up a nonprofit company plays a major role because an incorrect setup can create a huge mess. It might lead to penalties for the wrong use of funds. In the below write-up we will discuss how to set up QuickBooks for Nonprofits.
The thing you need to know:
Nonprofits Company requires document funds provided by donors and monitors pledges to ensure the proper allocation of restricted & non-restricted funds.
How is QuickBooks best suit for Nonprofit Accounting?
Nonprofit Company needs monitoring the expenses of several funds and programs. The QuickBooks contains several suitable features that permit the automation of nonprofit accounting. It allows creating individual accounts & expenses to keep track of the budget. You can easily pull out finance reports quickly and save more time.
How to Set up QuickBooks for nonprofit Organization?
Update the QuickBooks account for a nonprofit to cover the organization requirement more accurately. Through applying small modification, you can ensure the account uses terms, forms, and reports used in nonprofit organizations. Once you complete the account configuration, you get eligible to track donations related to your organization. Here is the list of instructions you need to follow:
Switch your company type to nonprofit
Nonprofit organizations are generally tax-exempt and accessing a unique tax form (990). Below are the steps to update your tax form and your company type:
- Locate the Setting section
- Hit on Account and Settings
- Choose the Advanced option.
- Discover company type, click edit button
- Choose the dropdown named tax form and then select the nonprofit organization (form 990)
- Click on the Save button
- Sign-out and then sign back in to view all modifications reflected across the QuickBooks
- Once you update the tax form named invoice to pledge, you must view the general reports for Nonprofits QuickBooks Company file such as Statement of Financial position & statement of Activity.
The thing needs to note:
Fewer labels may not update like profit & loss on the dashboard.
Modify customers to donors:
In any nonprofit company, the customers are known as actual donors. Below instructions are used to understand how to view donors instead of customers on forms and reports in QuickBooks:
- Discover Settings option
- Click on the Account and Settings button.
- Choose the Advanced tab
- Locate Edit button appearing in other preferences
- Choose the dropdown named customer label and then hit on Donors.
- Click on Save, and done.
Here the article about How to Setup QuickBooks for Nonprofits organization. Hopefully, the above information becomes a helping hand to perform nonprofit configuration in your QuickBooks confidently. Stay in touch with this platform to know useful and trending updates regarding bookkeeping and Accounting software. Get relevant knowledge about the optimized features and options to increase business productivity rapidly.