Before delving into fund accounting, it is very important to understand what it is in the first place. This will make it easy to follow the steps along. Learn how to set up fund Accounting in QuickBooks Desktop.
What is Fund Accounting in QuickBooks
It’s an organization that when meets Section 501 of USIRC becomes a nonprofit organization. When the business becomes nonprofit then all the rules and regulations are guarded by FASB. As per standards set by FASB, all the financial information is required to be submitted in separate categories. They are also required to make use of standardized reports to report their funds. Such are the guidelines that need to be met by an organization that does fund accounting.
How to Set up Fund Accounting in QuickBooks Desktop
If you are running an organization or are handling clients running it, then here is what you need to do to track fund accounting within Quickbooks. Follow the steps to make the process a bit simpler.
Step 1- Turn on Class Tracking
The very first thing you would need to do is turn on the class tracking feature if it is not turned on:
- Login to your QuickBooks accounting program and click on the settings
- Choose Company settings from the drop-down menu and then click on the Companies
- From the dialogue box that appears choose the Edit option from the categories
- Here you will see a list of options.
- Click on the option that says Track classes.
- This will enable your class tracking ability within QuickBooks.
- Hit Save and finish.
Step 2- Tracking Class per fund
- Hit the all lists tab within the Settings icon in the top navigation bar.
- Now choose the classes
- Choose the new option and you will be asked to give a name to your fund.
- Save the changes made.
Since now you have defined a separate class thus every fund entry you make would need to be entered in the most appropriate fund class.
How to Track Fund Income and Expenses
When you are done with all the entries and then here is how you can watch out for fund income and its expenses.
- From the left side navigation bar, you would need to click on the reports tab.
- Within the reports section, search for P&L by class.
- Click on the relevant option from the list that appears.
- You will now see a list of all the entries with the total income and expenses that happened in the current fiscal year. If you want to check out profits for the previous year then you would have to change the data from the all-date option and run the report. You can even give us a call at our QuickBooks consultant and talk to our Experts now.
