QuickBooks Online is traditionally not used as a specifically non-profit software. It does, however, have some ways to structure donors and the reports needed for non-profit reporting. Many non-profit organizations use QBO as it is easier, less expensive, and convenient with online access anywhere.
Configuring QBO to a Non-Profit Status
As a tax-exempt organization, the correct tax form is generally a 990. The first step is structuring QBO to indicate the tax form and make your company a non-profit:
- Go to the settings gear icon on the top right-hand side of the screen. Select ' Account and Settings under the column 'Your Company'.
- In the 'Company Type' box, choose the pencil in the far right corner to edit.
- The form type line will feature a dropdown. Choose 'Non-profit organization (Form 990)'.
- Click on the green box labeled 'Done' at the bottom right-hand corner.
Donor Designation
To utilize QBO as a non-profit, you change the word 'customer' to 'donor'. Once you make the change, your reports and forms reflect it to provide a more accurate representation of your organization:
- Locate the settings gear icon on the top right-hand side of the main screen.
- In the dropdown, go to the 'Your Company' column and choose 'Account and Settings'.
- From the menu on the left-hand side, click on 'Advanced'.
- Scroll to the bottom of the screen to 'Other Preferences'.
- Click on the pencil on the far right side of the box to edit.
- Dropdown menus appear for each option. Use the dropdown for 'Customer' and choose 'Donor's.
- Click 'Save' and 'X' to leave the screen.
Tracking Donations
One of the benefits of customizing QBO for a non-profit includes tracking donations. Most donors want a statement at the end of the year outlining their donations to use for tax purposes. To accomplish this task, you must start by adding a revenue account:
- Once again, click on the Settings gear icon at the top right-hand corner of the screen.
- From the dropdown, under the column labeled 'Your Company', click on 'Chart of Accounts'.
- Click on the green box marked 'New' on the right-hand side.
- Using the dropdowns, pick the information that best suits your organization. For a non-profit, this is usually 'Revenue' for account type and 'Non-profit revenue' for detail type. The 'Name' box should contain a name you will recognize, like 'Non-profit revenue'.
- You can include a more descriptive version in the next box and check the sub-account box if you want the information to be a sub-account of another major account.
- You can also indicate when you would like QBO to start tracking the revenue. The choices are this year, this month, today, and other. If you don't indicate this, it will start with the next entry.
- Hit 'Save and close' to complete the changes.
Entering Donor Information
Donor information can be entered at the time of the sales receipt as indicated below or if you have several donors to enter, use this method:
- On the left-hand side menu, hover over the 'Invoicing' label. Choose 'Donors' from the dropdown.
- Click on the green box on the top right-hand side marked 'New'.
- Fill in as much information as possible for the donor.
- Click on 'Save'.
Assigning Donations to Donors
Donations can be tracked by using a sales receipt. Sales receipts result in a giving statement available at the end of the period in which you operate. To track the donations for each donor:
- Using the menu on the left-hand side of the screen, click on the box that is labeled 'New'.
- Choose 'Sales Receipt' from the dropdown.
- Enter the donor's name. If it is a new donor, type in the name and choose details to include address, phone number, etc.
- Change the date if necessary by using the dropdown calendar.
- Choose the type of payment from the dropdown such as check, cash, ACH, etc.
- If there is a check number or other identifying information, type that into the reference box.
- Ensure that the correct deposit account is indicated. If the sales receipt is to be matched to a deposit going into a checking or savings account, use that account.
- Choose the product/service which, for a non-profit, could be 'Tithe/Offerings' or 'Non-profit revenue'.
- Enter the amount and click on 'Save', 'Save and new', or 'Save and close'.