Webinar – QuickBooks Online for New Nonprofit Use 2018-3-8


Hi everyone. Thank you so much for
joining us today for our webinar, QuickBooks Online for New
Nonprofit Users, with Gregg Bossen. I just want to go over a few
housekeeping items before we get started. So all callers will be muted. If you
have questions, you should see a chat box on the left-hand side of your
screen where you can ask questions along the way, and we’ll
also have a Q&A at the end, and Greg will be stopping for
questions throughout the presentation. So if anything comes up, feel
free to use be a Q&A chat box. If you have to leave the webinar early, or you want to watch it again once
it’s over, please visit our website, You’ll also receive an email with
the presentation, the recording, and any necessary links. If you are on
social media, feel free to tweet at us @TechSoup, and you can use
the hashtag #tswebinars. So just a little bit about TechSoup,
we are in 236 countries and territories, and we serve over a
million organizations. We work with several technology partners
such as Adobe, Intuit, Microsoft, and Symantec, and also,
QuickBooks Made Easy, who is going to be presenting today. So just before we get started,
I one, want to wish everyone a happy International Women’s Day. And
two, if you guys could just practice using the chat box on the
left-hand side. And just let me know where you are calling in from
and tile read a few of them out. All right, we’ve got Montr←al,
New Jersey, Denver, Indianapolis, Philadelphia, Vermont, okay.
So we have people calling in from all over the country which
is always really nice to see. So if you have questions
once the webinar is over, you can go to TechSoup.org/intuit
for more information. And now I’m going to go ahead and
introduce our presenter, Gregg Bossen. So, Gregg Bossen is a practicing CPA and Advanced Certified
QuickBooks Pro Advisor with a full-service accounting
firm located in Atlanta Georgia. He’s the founder and CEO
of QuickBooks Made Easy. Since 2000 Gregg has been
teaching live QuickBooks seminars around the country, specifically
designed for nonprofits, and he is considered to be a
national expert in the program. So I’m going to hand it over to Gregg. Gregg: Thank you very much
Sima. And hello to everybody. Now the first thing I want you to know
is that this isn’t your normal webinar. So if you are thinking you are just
going to kind of fade in and out or something, that ain’t
happening, because I am going to be the most interesting and fun person
that you have ever listened to. I’m also going to be wildly inappropriate,
so please make sure to listen. So close your door. Kick out
anybody that’s in your office. Don’t be interrupted, because
even though this seminar is free, it’s going to be one of the
most valuable hour and a halves that you have ever experienced
in your entire life. So now that I’ve set expectations,
really low, I’m going to say – let’s see. I want to make sure – thank you,
Lauren. I can see your chat too. So I want everybody to say,
“hi,” or “hello,” or whatever. I know some people can’t hear,
but they can’t hear me say that, but I want to know that you can
hear. The other thing I want to know, is I want to know – Ola, nice – I
also, I want to know whether or not I sound too loud, or too soft,
or just right. I want to hear that. So let me know, because we are going
to be here for an hour and a half. Sound is fine, says Becca. That’s cool.
Ah, somebody spelled my name right. Yay! My mom didn’t like Gregory, so she
stuck an extra “g,” so it’s just Gregg. Cool, everybody is great. Monotone?
Keri, I don’t believe I’ve ever been told that I’m monotone, but I
will try. Oh, oh my God, so I have a friend who is
listening to me right now. Hi, how you doing? Where
are you? Say “hello.” So I don’t remember your first name,
but it’s my friend Duncan’s wife. Anyway, whatever, we need
to start. So let’s see. This is me. And I do a
couple things in my life. As Sima already said, I own
a CPA firm in Atlanta Georgia. We specialize in nonprofits. We
have hundreds of nonprofit clients across the country. We do audits
exclusively for nonprofits too, so if you have audits – somebody
keeps saying, “turn off the music.” There is no music, Susan,
so I’m not sure what’s up. So somebody – I’m not
sure what’s up with that. So anyway, I have my accounting firm
but then I also teach QuickBooks, and I do it through a company that
I own called QuickBooks Made Easy. And what QuickBooks Made Easy is
all about these teaching people how to use QuickBooks, and specifically,
we focus on the nonprofit industry, because I love nonprofits, and
that’s what I do in my practice. So how do we teach people? We teach
people using DVD training products, one of which you can get
at TechSoup. They are DVDs that come along with handbooks. We
also have tech support agreements that you can sign up for where
you can call us 24 hours a day, 7 days a week. And then
we have live seminars and webinars that we do end. So here is where some of our
live seminars coming up are. There is one in Portland on May 3.
There is a 3 day desktop webinar series that is coming up. I think the first one
is for people using the desktop version of QuickBooks. And this one is for
those of you that use the Online Edition. So anyway, if you like us, we are going
to give you discounts on this stuff, so you can sign up later, but let me get
into this thing, and teach it for a while. So this is what we are going to do. This is what we are
going to learn today. First, we are going to learn what
QuickBooks Online choices are available. And by the way, this
class is for Online users. If you are a Desktop user,
I’ll talk to you in a second. Don’t hang up yet. But
this is for Online users. We’re going to look at the different
choices and which product is best for you. That’s really easy. It’s
only going to take a second. Then we are going to
look at an initial set up. I am actually going to walk you
through what you do when you set up a new account and get a new
file in the Online Edition for those people would haven’t done
this. Connie, yes, you can still – I would stick on the line
because a lot of the features and the techniques we use
Connie, are going to be the same. So don’t worry about that.
Plus, I’m very interesting. So after we look at the initial set up, we will look at how to get
around in the Online Edition, how to enter opening balances
which is one of the first things you have to do when you’re
setting up a new account. And then we are going to look at what the
proper set up of your chart of accounts, and your programs are. We are going to
spend a bunch of time on these 2 things, because setting things up is the
most important thing you’ve got to do. If you don’t set up right, your books are
never going to give you the right reports that you want. Then we are going
to end by looking at budgets. So that’s how we are going to look.
That’s what we are going to do. And I have a little poll here, and
I want you to answer the question. This gives me an idea. I know this
is supposed to be new online users, but I know there’s a lot of you
that you just saw the word QuickBooks and you signed up, so whatever,
right? Go ahead and answer this, how new are you? Never used
any QuickBooks products; know the desktop but new to online; know QuickBooks kind of
online, but not really well; you know it really well,
but not for nonprofits – because the set up for nonprofits
is actually very different than it is for most other businesses – you are good , you just
have some questions; you are a QuickBooks master.
And we’ve got 4 people so far, “What is this ムonline’
that you speak of? I love that. So we’ve got
624 people on the call. We’ve got about 300 that have answered. Now listen, I know that you
probably have a ton of other things that you’re doing, but you need
to stop and answer this question, because I really want you to
pay attention to this seminar. As I said, I’m very interesting.
Let’s go ahead and skip to the results. So actually, it looks
like this is about right. So we’ve got about over 1/3 of you
that have never used QuickBooks before, and then 25% of you that have
never used the Online Edition. So the vast majority of you, what
is that, over what is that 80% , don’t know the online very well at all. So we’ve got about 20 people
here that know it pretty well, 12 people just want to
be funny, which is nice. I like that. But anyway,
that is the online thing. So having said that, we
are going to start teaching. This is codes that you can use to get
discounts off of that three-day webinar series, tech support, and the training product,
but we’ll worry about that at the end. So we’ll worry about that at the end. I’m
not going to worry about that right now. So one thing I always like to
say is what is QuickBooks for? In case you’ve never used QuickBooks
before, it’s a financial software package. It’s a financial software
package which means yes, it does your accounting, in other
words, creates the financials, but it also will track your
invoices, and your receivables. So if you are a membership association,
or you invoice for something, it will do that. It will track your
expenses. You’ll enter accounts payable, print checks. It will do payroll, and
it will process credit cards for you, but you need to pay extra
money for that, all right. A lot of people do;
a lot of people don’t. We can talk about that if you have questions
about it, but probably towards the end. We are going to take questions
throughout, but at the end we’ll have some time hopefully, to
answer any questions that you have. So during the seminar if
you can keep the questions about what I’m teaching,
that would be helpful. And by the way, in addition to
a financial software package, it will work as a light donor database. We actually have a webinar through
TechSoup in a couple of weeks, or next week. It’s on the 15th I believe,
where we are going to go into the specifics of how to use QuickBooks that way. So
anyway, that’s kind of what the deal is, so let’s get started. So the first
thing that we need to talk about is the different online choices,
so I’m going to click on this slide. So there are actually – And by the way,
I’m getting ready to go into QuickBooks, and I’ll be in QuickBooks the rest of
the seminar, so don’t worry about that. So these are the different
choices of QuickBooks. There are 4. There’s Self-Employed, Simple
Start, Essentials, and Plus. This is the cheapest, Plus
would be the most expensive, but Plus is actually the
one that you have to use. So every single solitary person listening
on the call, if you have QuickBooks Online you must have the Plus version, because
it has the ability to track programs, and it has the ability to do budgeting. Fortunately, that happens to be
the product that TechSoup offers. And they offer it for $50 a year. So if you haven’t bought it yet, that is
where you need to buy it, from TechSoup, because it normally costs
$50 a month, not a year. So I am now sharing my screen. And
I can also no longer see your chat, so I am going to be asking David and
Sima to read me your chats periodically, so keep on chatting. So
this is the Online Edition. And Dale, is Dale there?
Dale asked a question before, and I wanted to talk to
him. Is he there, David? Where’s Dale? Did he leave? David: Dale is not responding. Gregg: See, that’s
what I’m talking about. David: Wait, Dale’s here. Gregg: Okay, Dale, you just
about – all right, so Dale said that he has QuickBooks Premier
which tells me that Dale probably has this version of QuickBooks. If you have this version of QuickBooks,
you are in the wrong seminar. This was the seminar that we
taught a couple of days ago. We did a seminar on the desktop. Now if you are sitting and listening to
the call, and you realize how fun this is, go ahead and hang out, because a
lot of the techniques are the same in terms of how you set things
up appropriately in QBO – QBO, means QuickBooks Online
– as they are in the desktop. So that’s kind of what the deal
is. So you’ve got to have Plus. And for the person who wants to know
how to find out if you have Plus, there’s a couple of
different ways to do it. Go to this a little gear
right here at the top right. Go over to Account and Settings. Now,
don’t do it now. You are listening to me, but you can do it later
unless you have double screens. That would be really cool actually.
Then you go to Account and Settings, and if you go to
Billing and Subscription, it tells you what you have. And as you can
see, I have QuickBooks Plus right there. It says its $40 a month. It’s
actually going up, so it will go up. But anyway, that’s what the deal is
with that. So you’ve got to have Plus, because Plus allows you to do
budgeting. So enough about that. So let’s move on to the initial set up. Now I have already set up a data
file here. And David, you guys, if you haven’t even signed up to get
a QBO, a QuickBooks Online account, chat me up. I want to know how many
people have never even signed up. Are there people that don’t have
a QuickBooks Online account yet? Go ahead and chat and let us know. And then David is going to answer me. David: Yeah, there’s
several people that haven’t. Gregg: Okay, so there is not a ton, but
may be like what, 10 or 11 or something? David: Oh, no, there is a lot. Gregg: Okay, all right, because
we’ve got 600 people on the call, so a lot would be anything
over 50, I would say. David: No, it’s not over
50. It’s probably over 20. Gregg: Oh, so it’s pretty small.
So you want to get it from TechSoup which I’m not going to show you that
website. You already know where it is. That’s how you signed up for the
seminar. But I am going to show you what happens when you sign up. So I’m going to go ahead and click
on this, and I’m going to click on – this is the QuickBooks website. This
isn’t where I would want you to get it. But anyway, I’m just going to show
you what happens when you sign up. So I’m going to click Free Trial. And it’s kind of funny, because
even though you clicked Free Trial, you see this little gobbledygook
or whatever it is stuck on Buy Now. So if you click Buy Now, you’re
going to be giving them money. So I’ve got to move this
back over to “free trial,” because I don’t want to
pay anything for this. So you’ve got to get the Plus. Of
course, that’s the most popular. See, it’s $50 a month. You click “Try it
free.” Now, even after you click “try it free,” it’s kind of funny. You have to basically,
at this point, you would need to sign up for an account with
Intuit. In other words, you’d have to give them your
name, and your email address, and contact information, and stuff
like that. I already have signed in, so I’m just kind of adding
another company to my account, so I am just clicking,
“Yes, that’s correct.” Now once again, if you are not careful,
you are going to end up paying money. If you want a trial, you’ve got
to click “Continue with trial.” And that’s it. That’s
really all that you do. If you click “Buy,” you’ve
got to pay money. But again, you’re going to be getting it from
TechSoup. When you get it from TechSoup, you sign up through them,
and they send you a link. And you click on the link,
and it goes to this screen. And that’s everything you do,
basically. It’s not really that hard. So when you very first set
up, there won’t be any numbers. The numbers will be blank. Now
I’m going to stop for a second, and tell those of you that
have been using QuickBooks for a little while anyway, it used to
be when you went to set up a new company, it would actually ask you questions
about the name of your company, which it still asks you questions
about that, but it also used to ask you what industry you are in,
and you could pick nonprofit. Well, that no longer is
happening. They just changed it, I think in the last week. So now,
there is no, “What industry are you in?” When you sign up for a new
company – and let me see. I’ve got to switch companies here,
because it took me to an existing company. So I want to see – here we
go. Here’s my new company. So when you go to it, you won’t
have obviously, any transactions, so yours will just be zero.
And these are the 2 questions that it will ask you. “What is your
business called?” I’ll call it “my cool” – and those of you that have
already done this, don’t worry, I’m getting ready to
teach you stuff. I promise. “How long have you been in
business?” Less than a year. They do have this thing where if you
are already in the QuickBooks Desktop, you can actually upload it to your
online account which is pretty cool. It uploads all the transactions
from the beginning of time, all of your lists. It doesn’t upload
your budgets. It won’t do that, so you’ll have to reenter your
budgets. If you have memorized reports, it won’t do that. Of course, that
doesn’t mean much to most of you guys, because you are
brand-new to QuickBooks. All right. Here is you kind
of pick what things you do. And you don’t really
have to be perfect here – if you – in terms of like knowing
what you are supposed to pick, because you can always change
stuff in the actual program itself. So let’s say I do want to do
invoices. I want to track bills, and I want to organize my
expenses. That always sounds good. So then I click, “All set.” And then
there it is. So that’s basically it for what you do to kind
of start your new account. So the next thing I’m going to
teach you is how to get around in these screens. And I know some of you
have already been trying to play around with it, but I think I’m going to
be able to really help you understand what you are looking at. So I’m going to
stop here, and take a couple of questions. So what have we got David, or Sima. It might be nice to
hear from Sima as well. David: A lot of people are wondering
– just one question, sorry Sima. – the process, if they already
use QuickBooks Online, but they want to switch to the
TechSoup version of QuickBooks. Gregg: Well, I was hoping
nobody would asked that question. So here’s the deal. I
know, because you are like “Dude, I am using QuickBooks Online.
I’m paying $40 a month or whatever, $50 a month. And now you’re telling
me I can get it for $50 a year?” Yes, but what you have to do is
you have to create a new account through TechSoup’s sign up. So
you’ve got to go to TechSoup. You sign up. They send you
a link. You create a company. Leave the company blank.
It can look just like this. You don’t have to put anything
in it. Then what you’ve got to do is you’ve got to go to your
old company, go to this gear and click Export Data. And then
you go through these screens. And you have to be in Windows
Explorer in order to do it, and it will basically take your
entire data file that’s online, and it will give it to
you in the desktop version. Then when you are in
the desktop version, then you can upload it
back to your new account. So you can’t go directly from one
online account to another online account. You have to go down to the
desktop, and back up to the online. So if you are thinking to yourself,
“Well, I don’t have the desktop.” It is time to call your accountant,
or your bookkeeper, whoever it is. See if you can find somebody
that will let you do that. I know this is a pain in the butt, but
it will certainly save you a lot of money. So that is kind of the way
that you do it, and I apologize. You basically, have to go down to
the desktop, and then go back up to – here we go, “Import Desktop Data”
– go back to your new account. So that is your answer. Anybody else? Got a question? So what I’m going to, I’m going to show
you how to get around in the data file, okay? And we will use this
data file to start with. Actually, you know what, let me go to a data
file that already has some numbers in it. It’ll just look a
little bit better here. By the way, if you are a nonprofit,
with that $50 that you are paying once a year, or once a month if
you don’t do it through TechSoup, that only gets you one
company, one account here. Look at all these I have. I have tons
of them. So if you are a nonprofit that has more than one company file,
in the desktop version of QuickBooks, in this version you can have
more than one company file. You could have hundreds
and not pay a dime extra. In the Online Edition, you’re going
to have to pay for a new data file. Every time if you have a new company
you are going to have to pay extra money. And TechSoup is only going to allow
you to use that $50 a year, once. You can’t just keep using it
over, and over again. So anyway, what else do I need to do? So I’m going to go to a data file
where I already have some numbers, and I’m going to tell you how
to get around in the data file. Then after that, we are going to talk
a little bit more about setting up. So this is for people, most of you are
going to benefit from this hopefully. So the first thing, is this is
called your “dashboard.” It has – I know I am speaking as if you
don’t know anything about computers, and a lot of you probably do. But hey
listen, I’m 52 years old. What can I say? I don’t know anything
myself about computers. Anyway, so these are
charts here, various charts. And most of these charts,
they may not mean much to you. They may not be that helpful
to you. This income chart, you may not have anything.
Yours just may say zeros on it. The only reason why this
chart would have numbers is if you or somebody is invoicing
customers through QuickBooks. If you are not invoicing
customers through QuickBooks, this chart is irrelevant. Can you
make it go away? No, you can’t. Expenses, we all like
to look at this chart. It’s a pretty little circle, and
it has our expenses and everything. You can control the date range
here, so that’s kind of cool. This is your P&L as a chart.
It gives you the income, and it gives you the expenses.
That’s not a very good is it? This is over here is where
your bank accounts are. And I will tell you that if you are in
the Online Edition which I assume you are, the very first thing
that you are going to do, particularly if you are a kind
of a techie kind of person, is you are going to go over here, and you are
going to immediately connect your accounts. You’re going to connect your bank
account and your credit card account, so that QuickBooks will just
download those transactions and they will already be in
your QBO file. If you do that, without knowing how to appropriately
set up your chart of accounts list, and where you put your programs,
your books are going to be a mess. And you are going to think
everything is great, and in actuality, everything is going to be not
great. It’s going to be horrible when you come to the end of the year.
Sure, all of the transactions are there, but none of them are pointed right. So I really like to not talk about
downloading until we have set things up. That is the purpose of this whole
webinar here is setting things up. So I’m not going to really do
much with transactions here, although, we can answer
questions about it. We are more all about
the appropriate set up, because we are talking
about new users here. We are going to do a little
bit with transactions though. And then this chart over here,
once again, will have nothing in it unless you used the sales forms in
QuickBooks which is like the invoice form or the sales receipt form. If you don’t
do that, then this form won’t matter. This is a bunch of advertisements,
so I just like to hide that. Oh well, you have to hide each
one individually. So my point is, the major stuff that is on the
screen is kind of irrelevant. So I’m going to tell you
where to go to do stuff. Any time you want to set anything up, put a new account in the
chart of accounts list, enter a budget, do anything other
than transactions pretty much, you are going to click on
this tiny little thing up here which is like a gear.
It is at the upper right. You are going to click it. And it’s going to give you, this
is where you go to set stuff up. Here is where you go to do budgeting. Here’s
where you go to do your chart of accounts. This is where you can change the look
of your sales forms in QuickBooks. There is all kinds of stuff
here related to setting up. If however, you want to do a transaction,
you want to add a check or a bill, or an invoice, or a deposit, you are
going to go to those little plus sign. So I am going to click plus, and this is
where all of your transactions stuff is. And unlike the desktop where
it is all over the place, all of the stuff that you do is
kind of all in the same place. So that’s kind of what
the deal is with that. The last place that you
will go to, or third-place, because you go here often, is
when you want to look at reports. So when you want to look at reports, you
go over to this reports thing right here and you click it, Reports. Now
let me talk to you about this. The report window is changing. This is the way that it used to look, but
it is going to look different in the future, and I will show you what the
difference is in a minute. Anyway, let me just teach you this. So when you are looking at reports, there are actually 5
different categories; there is Recommended Reports,
there is Frequently Run, Custom Reports, Management
Reports, and All Reports. So I like to go to the
All Reports section. Recommended Reports is
just basically major stuff that they think that you need, but they don’t know what they
are talking about. So why do that? Frequently Run, that
is stuff you run a lot. They base that on how
often you run reports. My Custom Reports, this is
where your memorized reports are. And that is going to be
very important for you. What you want to do is you want to
memorize reports that you use often, that the reports are already
formatted the way you want them to be. And then you usually go
there to get your reports. Management Reports is something that they
tried to create to make it look real pretty for a Board of Directors or something,
but I’m not really very impressed with it, to be honest with you. And you
can’t really change them very much. You can look at it, but
I doubt you’ll use it. Somebody on the phone uses it I’m sure. All Reports, this is where
all of your reports are. Okay, this is where
all of your reports are. And so I want you to
understand something. If you look down here and you say, “Wow, I don’t have that
many reports to choose from. There is a balance sheet and a P&L, but what if I want to look at
my receivables or something? That’s not here.” It is because we are in the sub
– of all reports called “Business Overview.” See this little “All
Reports” right here? You want to click on this
when you are in All Reports. And this gives you the different
subcategories of All Reports. Business Overview, this
is where your P&L is, your profit and loss. This is
where you look at receivables. This is where you look at payables.
So this is the subcategory. And the reason why I
like to point this out is because let’s say you want
to look at receivables, you click on here. You find the
report that you want to look at, and everything is good. Well, maybe a couple days later
you want to look at another report. You go over to reports again,
it goes back to where you were. And if you don’t remember
about this thing here, you are going to be like “Wait
a second. Where are my reports?” You’ve got to click the All Reports to go
basically, up one level to the main categories. Now just last week, I think it was last
week, or it may have been the week before, they changed the look of the reports.
So I’m going to go to a new data file that I have which –
here’s one right here – and I’m going to show you that
it actually looks different for new data files.
Look at how it changed. So what they did was, Favorites is something that is kind
of like their recommended reports, but you can add stuff to it.
Here’s your Business Overview. They changed receivables to “Who owes you.”
They changed sales to Sales And Customers, but it’s the same report. It
just looks a little bit different. And eventually, all of
yours will look like this. It will change. But at this point,
it is still looking the old way. And I think that’s all I need to
say about the getting around stuff. The only thing I just kind of
like to summarize at the end. So the gear, that’s where
you go to set stuff up. The plus sign, that’s where
you go to add transactions. Reports are where you go
to look at your reports. And this is the dashboard. Questions, whose got
questions about getting around? Anybody? Sima: Yeah, there’s a couple
questions about the bank account. So how hard is it to connect
your bank account later on? Should you pick a
certain date to do this? Gregg: Okay, it’s very easy
to connect your bank account. You just click this “Connect
accounts” thing right here, and you put your bank. I’ll pick Amex, but you
can pick any account really. Almost all the banks in the
country work with QuickBooks. Put your user name and password here. Click Continue. And
that’s really all you do. You pick which account
in QuickBooks it syncs to, and then it just starts
downloading transactions. The first time it downloads,
depending upon your bank, it may download 3 months of activity, maybe activity that you
have already entered. But when you download transactions,
they are not in QuickBooks yet. They are in a holding tank.
I’ll show you the holding tank. Here is the holding tank right here. These transactions are
not in QuickBooks yet. They have been downloaded from the bank. Here’s Smoothie King. I like
to go to Smoothie King a lot. But anyway, and so what you
do to add them to QuickBooks, you point them to the appropriate
expense account and you click Add. But if you don’t know what these
accounts, how they should be set up, and you don’t know where to put your
programs, your books are going to be a mess. You can by the way, you can
delete transactions from here that you know you have already entered. Additionally, if it is already
in QuickBooks and they know it, it will say that’s already in
QuickBooks. And you can push – this thing is going to say “Match”
instead of “Add,” so it won’t add it twice. So that’s kind of what
the deal is with that. So the other thing I want to teach
before we take any more questions, is unlike with the desktop,
listen very carefully. I want everyone of you listening to
me, because this is very important, particularly, for new users. I’m
going to take slip of La Croix. I love La Croix. What’s your favorite
La Croix. I want to hear that. Chat me up. Now listen to me though,
when it comes to the desktop, you can see more than one window at
a time very easily in the desktop. Here’s a P&L. Let me see,
I’ve got to move this. I’ll make it smaller. And then I
can also open up a balance sheet. So I can see more than one
window at a time very easily. In the Online Edition you can see
more than one window at a time, but it’s a little bit different.
Remember, this is a cloud-based software, so every single page that you are
looking at is its own Web address. See this Web address up
here. Now watch what happens when I click on Reports. It
becomes a new Web address up here. So since every page
is a new Web address, how do you think you would see
more than one page at a time? What would you need to do? Somebody give me the answer. Sima: New tab. Gregg: Yeah, you have to basically
open up a second instance of QuickBooks. So basically, I’ll take
this right here and well, you don’t really have to
copy and paste in Chrome. And by the way, Chrome is the best
option for looking at QBO, Chrome. Not Windows Explorer,
not Fire Fox, but Chrome. So I’m going to right click in
Chrome and click “Duplicate,” and then it creates a new window for me. And then I can change this window
and we make it look different than this window. And then you
can see them both at the same time. Of course, you have to click and drag, so that you can see them
both at the same time. And you can actually put
it on a different screen. I can only show you one screen,
but anyway, it’s kind of cool. So that’s the last thing
about getting around. So does anybody have any questions
before I move on to setting things up? Sima: I’ve seen a few questions.
Can you just talk about Mac and QB, because I think there’s some
questions about compatibility? Gregg: Oh, no, no, no. The Online
Edition will work with Mac swimmingly. It works the same. It is every bit as
functional as it is with a desktop – I’m sorry, as it is with a PC computer. So if you have a Mac, you absolutely
need to get the Online Edition, because to be honest with you,
the desktop version of QuickBooks, you have to get one that
is compatible with Mac. And the one that is compatible with the
Mac is called QuickBooks for the Mac. I think they sell it. I don’t know if
y’all still so it at TechSoup or not, but they stopped supporting
it in 2016. So the Mac version for like a desktop Mac version that’s
not in the cloud that looks like this. That’s gone bye-bye. So online
is the way to go. Anybody else? Let’s move, because I want to make sure
I have time to get through everything. So the very first thing that you are going
to want to do after you have done this, is you are going to want to
set up your chart of accounts. The chart of accounts is the
most important list in QuickBooks. And actually, all accounting
is, is entering transactions so they end up on 2
reports in QuickBooks. And those reports come from
the chart of accounts list. Let me say that again. I know I kind
of went around with gobbledygook. Let me ask you this. The whole
point of QuickBooks – I’m sorry – the whole point of accounting
is to create 2 reports. What are those 2 reports? You
all tell me what you think. What are those 2 reports? The whole purpose
of accounting is to create 2 reports. All you do is enter transactions
and they end up on the 2 reports. Sima: P&L Greg: P&L, that’s one of them. Here is the P&L right here.
And then what’s the other one? Sima: Balance sheet is
what people are saying. Gregg: The balance sheet,
right. The balance sheet. Now the balance sheet – I’m in a
go to a memorized one that I have. The balance sheet is basically a
snapshot picture at a point in time. It has all of your assets which
is the stuff that you have, like how much money you have in
the bank, what people owe you, what your fixed assets are,
and it also has the liabilities and it has the difference
which is equity. That’s the balance sheet. It’s
basically a snapshot picture of what you have. The other
report which is the P&L report, the P&L report, that’s different. The P&L report tells you what
happened over a period of time. It’s basically just the transactions
that occurred during the period, how much money came in and
how much money went out. So the way to look at the 2 reports, it’s kind of like the P&L
kind of tells me the story of what happened over a period of time, whereas the balance sheet tells me
what I look like at a point in time. So the balance sheet
is kind of the result. So if you are going to use QuickBooks, you must, you must get the
chart of accounts set up right, because all of these lines on
your balance sheet and your P&L, they come from the
chart of accounts list. I’m going to go over to
the chart of accounts. Let me duplicate this so
I can have 2 windows open. And then I’m going to go in this one, and I’m going to go over to
the chart of accounts list. Let me close this. And you will see that the
accounts that are here, checking, savings, memberships,
they appear right here, checking, savings, memberships. So the chart of accounts list
controls what these accounts look like. So we are going to talk about how
to appropriately set up your chart, so that you can get the
reports that you need. Now, when it comes – I want
to break this discussion up to 3 categories of accounts. First we are going to talk about what
your balance sheet accounts should be, and then we are going to talk about what
your income account should be on your P&L, and then what your
expense accounts should be. So I’m going to do the
balance sheet first, and then I’m going to stop
take a couple questions. The balance sheet accounts,
they are not that difficult. Basically, they are the accounts – your
assets are the things that you have. Now I bet even if you didn’t
know anything about QuickBooks – I’m kinda zooming in here
to make it easier to read – if you didn’t know
anything about QuickBooks, you knew that you had to have a separate
account for each one of your bank accounts. If you have people that you
invoice out of QuickBooks, you’ll need to have a
receivable account for them. Another one that everybody
needs is fixed assets. We need a furniture
and equipment account. Now some of you are small. You’ll just
have one that says furniture and equipment. Some of you are larger organizations.
You’ll have one for furniture, one for equipment, one
for land, one for building, one for automobiles. Those
are the typical ones you need. On the other side on the bottom half, you have all the accounts
of the money you owe. The top half is all
of the things you have. The bottom half is all
the money that you owe. And just like with the top half, you
won’t have to have very many of them. You will need an
accounts payable account. QuickBooks will create that for you. You don’t have to
worry about creating it. You will need to create your bank
accounts that were up at the top. And you’ll also need to create
your credit card accounts. If you have credit cards
that you buy stuff with, you’ll need to create
an account for that. If you have a payroll that you
are running through QuickBooks, in other words, you have
the Intuit Payroll Service you’ll need these payroll
liability accounts. And if you are with an outside
payroll service you don’t. And then finally, you will need an account for each one of your loans. We only
have one account here, Bank of America loan. So those are in general, the
type of accounts you need. Now the best place to go to if you are thinking to me, “Gregg, I’ve never even seen a balance sheet before. I really don’t know what my
accounts should look like.” What you want to do is you want
to get a financial statement. Somewhere in that office
is a financial statement. If you have an audit,
you can look at it. You can also even find
it on the tax return. You want to look at the balance
sheet that is in your old system or that somebody else has created. I’ve got one right here,
and this will tell you, “Oh, I have a checking, a
savings, grants, prepaid.” You shouldn’t have very
many of these accounts. There shouldn’t be very many.
And one thing that is very unique when you are first
setting up QuickBooks, is not only do you need to put
in your balance sheet accounts, and I’ll show you how
to do it in a second, you also need to create, you
need to enter the balances, the opening balances for those accounts. Because say your bank
account as an example, well, when you set it up there
is already a balance in there, so you need to put that
balance in QuickBooks. So what you have to do when
you our first setting up is you have to pick a
day. You have to say, “Gregg” – well, that’s
me. You’d tell yourself. You’d use your own
name. But you would say, “Gregg, what day am I going to
start using QuickBooks Online?” And usually, the best is to pick at
the beginning of your next fiscal year. You don’t have to do
that, but it is best. So anyway, I am like, “Okay. I’m
going to start as of June 30.” By the way, in the seminar today,
in the webinar it is 2020 right now which is an election year. Do you want to
go through another presidential election? It was so fun the last time. So June 30, 2020, so
I’m picking that day. That’s when I want to
start using QuickBooks. So you’ve got to figure out what
your accounts are going to be, and you’ve got to put the balances,
the opening balances for them. So I’m going to do it just for the
checking account so that you can see. So we have a checking account here.
The balance here is $43,440.26. So I’m going to create that account.
So I’m going to go over here. Let me show you where you
go to create an account. Well, actually, let me ask you. I
told you where to go to set things up. You all chat me up, where do you think
you would go to create an account, or set up an account? Go
ahead and chat me an answer. Sima: You go to the gear. Gregg: You go to the gear at
the top right. We click it. We click Chart Of Accounts right there. And here is your chart of accounts list. Then you are going to go over
to this button that says New. Bet ya if you didn’t know
anything about QuickBooks you probably would have figured
that out. And you click it. Then you are going to create an account. So the very first thing it
wants to know is the Type. Now these types are very important. Whatever type you pick determines
where the account appears on the financial statements. So if I pick
“bank,” where do bank accounts appear? Are bank accounts on the
balance sheet or the P&L? What’s the answer? Balance sheet or P&L? Sima: Balance sheet. Gregg: Yes, balance sheet.
Whereas, if I pick income accounts, where do they appear? Where do income accounts appear? Sima: P&L is what everyone is saying. Gregg: Right, right. So if you
don’t know what the type should be, ask your accountant or bookkeeper.
These account types are fixed. You can’t change them. And this is
standard in the accounting world. So we accountants love these things, and we will be able to tell
you what the type should be. So I’m going to create an account
for my bank, so I click “Bank.” Now the first thing underneath
it, you are going to see something that says “Detail type.” Now let me just explain something
to you about the detail type. This is something A)
that you must fill out, and B) is completely irrelevant. They have these types,
and initially they had them because they were going to
try and get the Online Edition to sync with their own tax software
that they put out pro-series, and they were going
to utilize these types. But it turned out that
they decided not to do that. So all the types do is they
kind of give you suggestions of some of the different
bank account names, because this is just a type. This is
where you put the name right up here. Now watch this. If I click
“checking” this changes to checking. So all this is, is a suggestion. But I
would never just use one of these names. I would make it personalized. I would go, let’s see,
Wells Fargo checking. And I always put the last 4
digits of the account number, because if you have multiple
accounts it makes it a lot easier to try and segregate things. Now, you must – this
description you don’t need. Subaccount is kind of irrelevant,
you don’t necessarily need to use it. This is a basics class
so we won’t go into it. But I do want you to know, you
have to put an opening balance. Now when it comes to your bank
account, the balance that you put here, first of all you are going to put it as
of your start date which I said 6/30, 2020. And then the balance that you put here, what you are going to do is you
are going to get the bank statement for June of 2020, and you’re going
to copy the ending balance right here. So with most of your balance
sheet accounts that you will get from your report, you are going
to put whatever the number is. Like prepaid insurance is $1818.88, or furniture is $9870.41. And that is what you would type, that’s what you would type – where am I? I’m back up here. That’s what you would type
right here in the Balance. But when it comes to the bank accounts and the credit card
accounts it’s different. You don’t put the bank balance
here, you put the checkbook balance as of the end of that month. You always
want to start at the end of the month. Now that may very well
be the bank balance. But let’s look again, and see,
here is our balance is $43,440. Now why might that be different
from the bank balance at June 30? Somebody chat me an answer.
Why might that be different. Sima: People are saying
outstanding checks. Gregg: Exactly, the outstanding checks. So what you want to do, say there is
one check that is outstanding for $1000. So if there is one
check that’s outstanding, even though your QuickBooks
balance says $43,440.26, your actual balance on the bank
statement will be $44,440.26. And that is what you
want to put it here. You want to put the bank balance, 44 – what was that? I can’t
remember. There’s too many fours, 4-4-4-4-0. Oh
my God, 4-4-4-4. You put the, you put the – I
think there was a zero there. There you go. That’s what you put.
You don’t put the checkbook balance you put the bank statement balance. And the reason why – wait,
before I even say that. You might say to yourself, “Well
Gregg, then my opening balance is wrong because it won’t
match what it is supposed to be according to my last financial
statement.” You are right. And so what you do after you
put in this opening balance is you go into the
regular part of the program where you would enter transactions,
and you enter that outstanding check for $1000 with its original date
which is before the start date before June 30. QuickBooks
will let you do it. And then you really will
have the right balance. It will be 43. The reason why you
separate the outstanding stuff – well, you tell me. Why do you think
you would separate the outstanding stuff when you are first setting
up? So that you can do what? What do you all think? Sima: Let’s see. People
are saying to reconcile. Gregg: Exactly, exactly.
So this is a big problem. People will just put the
balance that is on the books, and that is wrong. You put the
bank statement balance here. If you entered the outstanding
checks then you can check them off when you do your first bank rec. So that’s really all I want to
say about the outstanding balances, and about the balance sheet account.
So I want to spend the rest of the time, or at least another 10 or 15
minutes on the income accounts and the expense accounts. But let’s stop
for a second and take a couple of questions. What have we got? David: Well, somebody says that I
heard Gregg say put the QB bank balance as the bank statement balance, and
she said, she also heard you say put the QB balance as the opening
balance and she is confused. Gregg: Okay, then I must have misspoke. When you are in that opening balance, you want to put the bank statement
balance, not the QuickBooks balance, the bank statement balance
as of that start date. You always want to start at the
end of the month. I started June 30. You put the bank statement balance
and then you enter the transactions that are outstanding. Next question. David: Many people want to know
where your account numbers are. Gregg: It’s a big secret, and I am
going to teach you that in a moment. Next question. David: Someone asked
if they switched banks, is there a way to upload data from the old
bank, or do they have to do it manually? Gregg: If you have
access to your old bank, in other words, if you have
online access to your old bank, you’ll still be able to
link transactions to it. It just depends upon if
you have online access, because if you do, then QuickBooks does. David: Somebody asked, they didn’t add balances when they
were first setting it up in QBO. Can they go backward and add the
balances on January 1 of 2018? Gregg: Yeah, you can go back
and add opening balances, but I’m not sure if you have
already entered transactions. Let me see if you can still
put in an opening balance. No. So once you have started
entering transactions, you can’t put an opening balance here. So you will need to do –
you are going to hate me – you are going to need to do a journal
entry to enter the opening balance. The journal entry is a transaction, so
where do you go to enter a journal entry? I’m going to just say it, were
going to go to the plus sign, because it is a transaction.
You go to Journal Entry. And if you want to
enter the opening balance for a bank account, you are going
to pick the bank account here, and to make a bank
account go up you debit it. So you put the opening balance here, and
then the other side of that transaction because every transaction has 2 sides,
put to one of the equity accounts. You will probably have an equity
account called unrestricted net assets. If you don’t, there will be one called
retained earnings so put it there. So whatever the balance is you put it
here, then you put the balance over here. So I am going to – so before
we do the income accounts, I’m going to – actually, you know what? Yeah, let’s do the income
accounts and then I’ll do it. So I am going to show you
about income accounts now. So the best way to kind of
explain to you about the right way to set up your income accounts
is to show you the wrong way. So I’m going to go to a data file. See, it is called “wrong
way.” So don’t forget that. So what I am about to show you is wrong. So if you are one of these dudes
that is like, or one of these ladies that is half listening and you
are looking at something else. You’re not looking at the screen
and you are just kind of listening. Or maybe you are looking at
the screen and not listening, you might get confused. But
this is the wrong way to do it. Now before I show you, let me just
tell you what my overall theme is here. When it comes to your
income and expense accounts you don’t want to have very
many. And the reason why is because if you have a ton of them
which I’m sure a lot of you do, then your P&L’s won’t fit on one page. They will have to be
on 2, 3, or 4 pages. And what that means is when you give
that P&L to the Board of Directors compared to a budget,
they will not read it because it is too many pages. You
know that I’m telling the truth here. Maybe you don’t want them to read it.
Maybe you are trying to hide something. But the point is, we want to
give the board a one-page P&L which means we can only
use the most important stuff that we need to track, use the chart of
accounts for only the most important stuff. Other things that we need to track,
there’s a ton of stuff we need to track like restricted grants. Don’t use
the chart of accounts for that. There are other ways to track that. So I
am going to save the most important stuff for the chart of accounts. So just watch
how I do this and what my rationale is, and I think it will start making sense
to you. So let me show you the wrong way of setting up your income accounts. And
I think I already have a report here. I always go to my custom reports,
and then of course nothing happens. Oh, I’m in the wrong – I should
be in the right data file. Sometimes, this is the downside
of using the Online Edition because you are completely
dependent on the Internet. If it’s slow, or if there are
issues with that, you end up waiting. Anyway, here’s the wrong way.
Oh, here are some account numbers, maybe y’all will feel
happier. All right, so I’m going to tell you about
the account numbers in a minute. But anyway, here is the thing. Restricted grants, do you see how
I have that as an income account? How many of you have
grants that are restricted? Go ahead and chat if you do. And
I’m sure there are a ton of you that have restricted grants.
Now look at the screen. Do not, repeat, do not have an income
account called restricted grants. Don’t do it. It doesn’t help you. What is the most important thing you’ve
got to find out about a restricted grant? What do gotta tell the funder at the end
when it is time to report to the funder? What do you have to tell
them about the grant? What are they saying? Sima: How you spent the money. Gregg: How you spent the money. Does this tell you how
you spent the money? No. All it does is tell you
what your restricted grants are. So A) it is not helpful,
B) it is quite complicated, because notice how I have a
foundation grants income account, but at the top I have
a restricted grant. Well, what if I get a restricted
grant that is from a foundation? Do I put it up top, or do I
put it down – it’s confusing. Don’t do it. We are going to use another
list to track our restricted grants. And I will just tell you it is called the “customer
list.” Yours might be called a “donor list.” Another thing, look at the 2nd and the
3rd line here, the Green Truth Grant, United Fund Grant. This is
the person that got all excited and created a separate
income account for each grant. [BUZZ], unnecessary, makes
a long P&L, don’t do it. There are other places to
go to get that information. When it comes to your income
account, you should have these 4; individual contributions, corporate,
foundation, and government grants. That’s it. Those 4, everyone
listening on the call, that is what you should be having. I know
you don’t. I know you have other stuff because you are different. And I know
people are like, “I need something special.” You can get the “something special”
outside of the chart of accounts list. I promise you. You will see as we go. So these 4, the reason why I like them
is because this is how I have to report it on your 990, this is how I have to report
it on an audited financial statement, and this is an excellent
way for a Board of Directors, many of whom don’t know the
first thing about numbers, to figure out where the
money is coming from. Sima: Sorry, can – we are getting a lot of,
can you repeat the 4 income accounts again? Gregg: They are right on the screen; individual contributions, corporate grants, foundation grants, and government grants. Sima: Perfect. Gregg: Those 4. Now then you’ve got – that’s what nonprofits
call “unearned revenue.” In other words, it is
revenue that is given to you. Obviously, if it’s a restricted
grant you have to work for it. Nevertheless, the person who gave
you the money is a foundation, and they are not receiving direct
benefit, so it’s kind of a gift to you. But then you have “earned revenue.” Many of you earn revenue by doing
things, providing a product or a service. If you are a membership association,
maybe you have member dues, or you have an annual conference
where you have registrations. If you are a theater, maybe
you are selling tickets. Maybe you sell T-shirts. Maybe you
have classes that people sign up for and they have to pay. Maybe
you are doing consulting work with other nonprofits, all kinds
of stuff. If you have earned revenue you want to have income
accounts for those as well. Here is my rule about that. Don’t get
to granular with your income accounts. In other words, if
you have memberships – how many of you have membership
associations and you have members? Go ahead and type something and
let me know. I bet a lot of you do. You probably have different
levels of memberships. We have the retired member, and we have the affiliate member,
we have the general member, we have the lifetime member,
whatever, people with red hair member, whatever. You segregate them. And if
you have separate accounts for that, it is going to make your chart of accounts really
big. Now I want you to be able to track that level, but again, we are not going to use
the chart of accounts list for it. For that we use something called
the “product service list,” product service list. And we can
talk more about that at the end. So not too many income accounts. Don’t get too granular with your earned
income. And just have these main 4 when it comes to your, when it
comes to your unearned revenue. So that’s the deal with income accounts. Now the expense accounts
people screw up even more than they do the income
accounts, and I will tell you why. Actually, let me stop and see who has
questions about the income accounts before we move on to the expense
accounts. We have 30 minutes left. We are doing great. Who has questions
about the income accounts, anybody? David: What about
fundraising? Is that income? Gregg: A special fundraising
event, you would have actually a series of accounts for, but you wouldn’t
just have a generic fundraising account. I actually have a whole chapter
on special fundraising events in one of the training
products that we sell. I’m going to go ahead and do my little poll
here by the way, while you are asking questions. David: Somebody wanted to know
where you [indistinct] sponsorships. Gregg: Sponsorship income, I usually
do have a line for sponsorship income, because it’s usually related
to some sort of an event. So I would definitely have one income
account called sponsorship income. So I want everybody to
answer this question, please. This is vitally important.
We’ve got 586 people on the call. What happened to 624? David, what
happened to those 50 people, or 40 people? Why did they leave us?
[indistinct] Please, don’t leave. Please, stay. And look at
this. Come on everybody, I want you to answer. We are
at a break now, you can listen. We are not talking about
boring stuff. So on a road trip, where do you stop for food? Burger
King, McDonald’s, In n’ Out – David’s favorite – Taco Bell,
homemade healthy snacks only – that’s what I’m on now. I’m
on this ridiculous diet. – Arby’s, Hardee’s, Cracker
Barrel, or – Oh, my God. We have 37 people that
live off of air and light. There is actually a person in
China who claims to be doing that. Anyway, are you all ready? Sima: It sounds like there are
some sound issues. I don’t know. A few people just chatted
and said they lost the sound. Gregg: Really? Sima: Oh, there we go.
It’s back. We are good. Gregg: Okay, all right, good. So most
people, 21% homemade healthy snacks only – complete lying I am quite
sure. On a road trip? Give me a break. Look David,
McDonald’s beat In n’ Out. I told you. Hardee’s came in last. David: See, the rest of the
country doesn’t have In n’ Out. That’s the only reason, or
that would have won by far. Gregg: Anyway. And Hardee’s
bringing up the rear which is entirely appropriate. But
I’m loving living off of air in light. We are up to 40 people now. So let’s – is there anybody
else that has questions before I go back in and talk
about the expense accounts? David: There’s quite a few questions. Gregg: Well, ask a couple. Ask a couple. David: I’ve had a few churches
asking about if the income accounts that you were talking
about apply to them. Gregg: No, not at all. For
churches, it’s completely different. And I think I have a church
account that I can show you. I might anyway. I don’t know. David: We are having a webinar
later on this year for churches. Gregg: Yeah, so I don’t. Oh,
here we go, The First Church. I’m so good. Let me share this. I’m going to share this again.
Here we are in the church, so let’s see what this
chart of accounts looks like. I’ll just go to a P&L for them. Go to Reports, and Business Overview, and here is a P&L. Yours might
be called “statement of activity.” And if that is the case for you,
don’t freak out. You’re fine. So this is what I have. One
for pledged contributions, one for loose offerings, one
for unexpected contributions, and then miscellaneous, and interest.
I don’t really have much more than that. But there is another thing about
churches that are very unique, that’s unique and it
has to do with expenses. So I will cover that too since I know
there are some churches on the line. Sima, are churches, they can
be members now of TechSoup? I know at one time they couldn’t,
but they can now. Is that true? Sima: That’s a good question. I’m
going to have to follow up on that. Gregg: Yeah, see what you can find out about
that because I’m not really sure about that. Sima: Yeah, I can find out and
I’ll chat it out to everyone. Gregg: Now, listen to me guys, this is
the most important part of today’s webinar because this is where
everybody screws up. So even though I know there’s only
300 and something people listening, even though there are 500 on
the call – it drives me crazy – this is this is the most important.
This is very, very important. When it comes to your expense accounts,
this is where people screw up the most. And the reason why is because
there are 2 – I’ll say it again – there are 2 things that you need
to track when it comes to an expense and you are a nonprofit. One of
the things that you have to track is what I call the “natural
category” of expense, the natural way of thinking
about expenses like supplies, or travel, or salaries, or
payroll taxes, or equipment rental, or printing, or postage, just the
natural way of thinking about expenses. Those are called your “natural categories.”
Some people call them the “object” of an expense. It is literally
what the money was spent on. And you will know that
it is a natural category if it is something that everybody that
can speak the language, speak English, will understand. And those are what
your expense accounts need to be, health insurance, dues,
interest, license and permits. And there is no wrong answer here.
You can be as detailed as you want to. I wouldn’t be too detailed because then
it is going to make the P&L really long. So natural categories.
Now there is a 2nd thing, number 2, there is a 2nd
thing that you have to track when it comes to your expenses. You have
to put your expenses in one of 3 buckets, and funders want to know that most
of your money is spent on bucket 1 as opposed to bucket 2 or bucket 3. They like bucket 1 better.
What are these 3 buckets? What are the 3 buckets, the 3 ways
of kind of splitting your expenses besides the natural category? What
are those 3 buckets? Somebody tell me. Sima: We’ve got programs,
admin, and fundraising. Gregg: Love you, love you, love
you, programs, admin, fundraising. If you don’t know this, you need to,
because every single solitary nonprofit in the entire country except
for churches by the way – churches, you don’t have
to do this so ignore this. – But everybody else you
have to report to the IRS. You have to report on an audit. You have to report to funders. Your expenses need to be grouped
into program, fundraising, admin. And funders want to know that most
of your money is spent on the program rather than admin or fundraising. So what some people do which is wrong, and if you see here, do
you see how this is wrong? We’ve got the Guidance Center,
Synergy Conference, Aware Campaign, these are projects or programs.
And I guarantee you, you have them. And you’re not supposed to
use expense accounts for that. See the one below it, fundraising
expenses? You shouldn’t have that either. Because I don’t know what
the literal expense was. If you put fundraising expense, or
you put go Green Guidance Center, it’s like, I don’t know what’s in here. Is it money you spent on travel,
postage, printing? I need to know it. The board wants to know it.
The IRS wants to know it. You can’t do that. Your expense
accounts need to be natural categories. But there is another list that you are
going to use to track your programs with. And that list is called
– well, y’all tell me. What is that other list? What
is that other list called? Sima: Class. Gregg: Does anybody know? The
class list, that’s exactly right. So if you are not using the class list
to track your programs, you need to. Everybody should. So I’m going
to show you how to set this up if you haven’t done it yet.
First of all, you go to the gear because you want to set something
up, and you go to All Lists. You think you would see class list
under here, but you don’t see it. So we click All Lists, and
there is the Class List. And as you can see, I have set up
my classes, go Green Guidance Center, Synergy Conference, Aware
Campaign, admin, and fundraising. So that’s basically my classes.
Everybody will have at least 3 classes because everyone should
have a fundraising class. Everyone should have an admin
class. And then if you are small and you only have one program, you will
have a third class for your program. In this example we have 3 programs. And
programs are kind of like major things that you do in service of your mission. And once you set up these classes,
then when you enter transactions – again, this class isn’t really
about entering transactions so much. It’s more about set up. But over here under
Customer, not under customer, under Class,, you pick your
class. Let me move this. I don’t know if you can see this.
Let me move it out of the way. So over here I can put, I’ll
just pick “equipment rental.” So that is the natural category. And then over here in class, – I’ll make this a little bit bigger – I can point it for
the Synergy Conference. And then underneath that, we
could have the same transaction. We’ll do equipment rental. The same expense accounts, but we can
split it between different classes. And the same is true if you
have downloaded transactions. When you are in the downloading
transactions window – I’m going to leave without saving here. Let me go back to my dashboard. When you are in the
downloading transactions window, these are transactions that are
downloaded that are not in QuickBooks yet. But if you click –
let me click on this – “split” right here. You see, you can
split them between different classes. So classes are very, very important. And the benefit of doing
this, and you want to split every transaction needs to
go to a class. And by the way, I forgot to tell you how
to turn on this feature. Let me tell you how to turn
it on if it is not on for you. You go to the gear, and you
go to Account and Settings. Those of you that are
used to using the desktop, do you remember where your
preferences were in the desktop? They are called
“preferences” in the desktop. In the Online Edition, preferences
are under the Account and Settings. This is where your preferences
are. Preferences are little features you can turn on or off in the
program. I’m going to click it. And the preferences are divided
into different categories. If you go to the Advanced category
then you go to Categories down here, Track Classes, you make
sure that that is on. Now you will also see something
called “track locations,” but tracking locations is not near
as powerful as tracking classes. So you want to make sure this is
on. And you also want to make sure that you can assign each row in a
transaction to a different class. The reason why classes are a
much better choice than categories in terms of tracking programs
is because – or locations – is because when you enter
a transaction like a check, you can only put it to one location, but you can split it
between different classes. And the benefit is then
when you look at reports – I’m going to look at my reports – instead
of looking at just a straight up P&L, I can look at a P&L by class. Now I already have one memorized, so
I’m going to go here so you can see it, P&L by Class, I’m going to
click it, and check this out. We don’t have to have very many accounts,
because the columns are telling us what happened in each program,
admin, and fundraising. I can think of each program
as its own cost center, and I can kind of see how
much each program cost me. And I can also see the revenue,
so I can see that for instance, the Guidance Center
I lost $11,000 on it. So this is a very powerful, powerful
tool enabling you to look at your P&L’s. You could give it to the board that way. It’s probably a lot of columns.
I probably wouldn’t do it. We’re going to show you how
to enter a budget in a second. That’s probably what you’re
going to give the board just kind of a total, not by column
like this. But I’ll stop right here and take questions that
you might have, because this is very, very powerful.
So I’ll stop for a second. Who has questions about this? David: Can you create a
balance sheet by class? Gregg: No. Well, let me say this. You can
create a balance sheet by class, but it is going to be awful.
That’s not going to work. Things are not going to balance. And that is because of the way the
programming works in QuickBooks. I’ll just leave it at that. David: Beth wanted to know, can you
specify how much money to each class on a split transaction, or
does it do an even split? Gregg: How much money to
each class on a transaction? So when you are entering
a transaction like a check, over here you can split it. So this is where you are splitting it. And if you are the Church, Beth, I
don’t know if you are, but churches, and I think Dale said this
too, you want to track funds you use classes to track funds. But
you don’t look at the balance sheet. There is actually a special report
you get. And I can show you that. It’s in the Beyond The
Essentials training product and that is probably what you would
want to get if you are a church because it shows you how to track
funds. Let’s take one more question. David: What is the difference between
class and location? And what is location? Gregg: So basically, there is no
difference between class and location in terms of what they are. They
can be whatever you want them to be. So let me show you where
my location list is, Lists. So you can split transactions. You can
have transactions to different locations, or to different classes. See this
says “different parts of your company.” I already said what the difference
was, but I will say it again. When it comes to classes,
you can take one transaction and split it between multiple classes.
Like say you write a check at Office Depot, but some of the stuff you
bought is for a program A, and some of the stuff you bought is
for program B, you can use classes and it will let you do that. If you use
locations, you can’t split that check up between multiple locations, it
all has to go to one location. So locations aren’t near
as flexible as classes. It is just another way you
can split your transactions. So let me do a couple more things here. I want to talk about the account numbers,
because somebody was asking about that. So let me go ahead do that now. Wait a second, I can’t remember
where I talk about this. I think I talk about
it here. Yeah, I do. We’re doing great on time by the way, we will be a few minutes over so you
guys can ask questions but not much. So one thing somebody noticed,
a lot of people noticed actually, was that when I ran a report – let’s
look at a profit and loss here – that there were no account numbers. So account numbers are a way of
tracking an account, or “identifying” – I’m sorry – identifying an
account with a name instead – I’m sorry – with a number
in addition to a name. So your accounts when you set
them up will always have a name. If you want them to have a number, then
you will need to turn the feature on. The reason why I don’t have
the account numbers here is because I don’t have the feature
turned on. I did it on purpose because I want to teach you something. Now let’s take a look at this P&L here. Does anybody, how do you feel
about the way that it is organized? How are the expenses
organized, in what order? Somebody tell me. Sima: Alphabetical Gregg: Right. Is that what you all want? Chat me up and tell me. Is that
really what you want to see here? What are they saying?
What do they want to see? What do they want up top? What account do you usually see up top? Sima: So they are saying
largest to smallest. Gregg: Okay. Well, if all you want is
largest to smallest, that you can change. Do you see where the
Sort feature is here? You can sort it. Let
me see, maybe you can’t. Hold on, let me see if I
do it in descending order. There we go, then you’ll
have it largest to smallest. So that you can do. Sima: And then also,
most used would be nice. Gregg: Well, typically, people
have like the salaries up top, and it usually is the bigger stuff.
So the reason why I teach this at this moment is because the only
way to change the order of the list to some order other than greatest
to smallest, or alphabetical, if you want anything other than
that, the only way to change the order is to turn on the
account number feature. So let me show you. To turn
on the account number feature, you click on the gear. You go
over to Accounts and Settings. That is where your preferences are. And then you go to Advanced. And then under, do you see
where it says chart of accounts, click “enable account numbers.”
You enable them to turn them on. Click Show, and then click Save. Now the account numbers will be on. Now, remember when I showed you
how to add an account before. I’m going to show you again, but
this time when I go to add an account, go to the chart of accounts
list, I’m going to add an account, now there is a field
that wasn’t here before, and it is called “number.” So that is basically where
you would put the number. Now the point is, once
you have account numbers, then when you look at reports – and
I’m going to pull up that report again – it’s going to be organized, the
same exact report by account number. And this is how I can control how
the lines appear, by account number. So to create the account numbers, there
are 2 different ways of entering them. One thing you can do which is kind of
ridiculous, you could click on each one, edit it, and go in
here and put a number. But it’s kind of hard to do that when you
are trying to get them in a certain order, and then you’ve got to look at
other numbers. So what I like to do, do you see this little
pencil thing right here? I’m going to click on it, and now all of a sudden, I can change
the numbers at random, all of them, and get them in the
order I want them to be. This one didn’t have a
number. I need to add it, 1520, whatever. So that’s
basically what the deal is with the account numbers. So let me teach the budgets real quick, and then I’m going to
answer some more questions, and then we will finish out. So the budgets are actually
really, really easy. Now, we are wanting to set up a budget,
so we our going to go to the gear. And actually, let me change
to a different company here. Let’s see. By the way, the people
that are in Atlanta, give me a shout out
because I am in Atlanta. It’s really pretty out here, and I
want to be outside and not inside. David: I do see a few people. Gregg: Okay. See if you can get
their names and contact information. I think I’m going to stalk them. I
think I’m going to show up at your door, do you want to talk about
QuickBooks? Hi, this is Gregg. It’s Saturday morning.
Let’s talk about QuickBooks. So the gear, what am I doing? Oh, I’m in a go to the reports. Not reports, you go to the gear.
I forgot I’m doing budgeting. I completely forgot
what I was talking about. Gear, Budgeting. So
you click Add Budget. Now they want you to name your
budget. And for those of you that are coming from
the land of the desktop, the reason why they want
you to name the budget is because unlike in the
desktop, in the Online Edition you can have more than one budget for
the same year which some people do. They’ll have their original budget
and then they will make some changes during the year for a like a new initiative,
so they will create a new 2nd budget, but they still have the original budget, and
you can compare the actuals to either one. So you pick your gear. This is where
you can pre-fill the information which is kind of a good starting point.
You pre-fill it with last year’s data or this year’s data. If you’re in the middle
of the year and you start doing a budget for the next year, you want to
start with the current year’s data. If your year is already over, then
you want to start with last year. Anyway, I don’t even do that. I just
leave this at “no,” and then I click Next, and this is where you enter your budget. Now they assume that you
enter a budget by month. How many of you actually
enter budgets by month? Go ahead and chat me up if
you enter a budget by month, not necessarily in QuickBooks, just
in life, well, in your worklife anyway. Sima: Pretty even split. Gregg: Is it really? So
it’s either month or year. So I’m going to teach both. So
if you enter your budget by month, what’s the thing –I mean – what I mean
is you go, there is $4000 this year. Next year, or next month it’s $5000. In September that’s when it’s starting
– it’s a real pain in the butt. That is why some people like to
start with the prior year’s actual’s, so that you at least
have some numbers in there that you can kind of screw around with. One thing that is kind of
cool is this button here. This allows you to copy across.
So if you’ve got an expense account like where it’s the same
every month like rent, here’s rent. I’ll go over here
and we’ll say rent is $2400, and then all I’ve got to
do is push this and boom, it copies at all the way across. So
that kind of helps me a little bit. Sometimes you will have accounts that
you won’t enter a budget line for, maybe they are old accounts.
One thing that is kind of cool, if you click the gear – I’ve
actually never taught this before – you click the gear, and do you
see where “hide blank rows” is? If you click that when
you’re done with your budget, it just shows you your
budget without the blank rows, and it’s easier to make sure
that you’ve entered everything. Isn’t that kind of cool? Chat
me up if you think it’s cool. Now after you are done
entering your budget, any time you want to look at
a budget by year, or by month, I’ll show you the by year in a
minute. You go to your budget screen, so we are going to go to the gear,
we go to Budget, it opens this up. And unlike all of your
other reports in QuickBooks, every other report you’ve got to go to
Reports, not the Budget To Actual reports. You got to go into Budgets. Here
they are. You’re going to click it, and here is where you either edit
the budget, or I can copy the budget. If you want to copy this year’s budget
and start with that in next year, you can do that. Here is
where you delete the budget, and here is where you can run your budget
to actual report, so I’m going to click it. And what it does is it gives
the me an actual for July, a budget for July, and a variance; an
actual for August, a budget for August, and a variance. It does
it every single month. And then all the way
at the end it totals it. Now this is something that a finance
committee would want to look at, somebody who is really detailed,
that person on your board that asks for a million reports
– I know you know who they are, that you wish would leave the board – they will want to see this.
But your overall board, way too many columns. So what we are going
to do is we are going to go up top here, and we are going to click
the “customize report” button, and under Rows/Columns, we
are going to switch the grid so it is Accounts vs. Months. We’re going to make
it Accounts vs. Total, then we are going to click Run Report, and now we’ve got our things that
the board might actually like. Now that is if you budget by month, now let’s do budgeting by year which is I
think most people actually do budget by year. And when you budget by
year, click Add Budget, you might be tempted to
change this “Interval” to Year, because then when you enter a number
you just have to enter the number for the whole year. Don’t
do this! This is wrong! For those of you who aren’t
listening, this is wrong. Because what happens is, if
you put in one number here, what it actually does
is it takes the number and it divides it by 12, so you
are still budgeting by month. So if you want to budget by
year, what you are supposed to do is you are supposed to leave
this at Monthly, go to Next, and then you put your entire budget for
the whole year in the very first month. Don’t put it in the last month. Put
it in the very first month of the year. So you put the annual
budget here for this account. You put the next one
here for that account. The reason why you put it in the first
month is because whenever you are looking at a report compared to budget, say you are looking at a report for
the first 2 months of the next year, and say your year begins July, so you’d
be looking at a P&L Actual To Budget for July and August, it’s going
to take July’s and August’s actuals from the transactions
that you are entering, and then it’s going to compare them
to the July and August budget columns. So if you don’t have anything in
the July and August budget column it is over for you. So you won’t
get a budget column on your report. So you’ve got to pick
the very first month. So then when you look at
the report – We’ll pick one. This is my budget by year, so I’ll run it.
It is still going to give you the columns by month, but you’ve got to
go over here, click Customize, click Rows/Columns, make this
Accounts vs. Total, click Run, and then you have your report. So we are at 3:31. I want
to take a few questions, but there is something more
important that I want to cover. Let me go back to the slides here. And I want to point
out something that I – because based on the one –
well, there’s 2 things actually. One thing is this. Not this not that. Let me see where my codes are.
I’ve got to show you those codes. David: You’re on it. Gregg: What? Oh, good. Okay, great. Here’s the deal. And I can tell from
the questions there are a ton of you that could very well benefit
from a three-day webinar. Now it’s 2 hours a day for 3 days. If you think I’m interesting,
you’ll like it. It’s $199 normally. We are going to give it to you guys
for $149, provided that you sign up by Saturday. And you get $50 off, so instead of $199 it’s $149. We’ll
be able to get into a lot more. It’s kind of cool because you do it
for 2 hours and then you’ve got 24 hours to play around and think about it, and then
we come back the next day and do it again. So there is your code. It is
not on the TechSoup website. It is on the QuickBooks
Made Easy website. So you go to
QuickBooksMadeEasy.com for that. If you want the training product, we have a training product. If you
don’t want to sit through the webinar, you want to get a training product,
you can get that from TechSoup. It is $109. It’s normally $299, so we
are giving you what is that $190 off, so that is very cheap and you get
that from the TechSoup website. And then finally, if
you want tech support you can actually get a year
of unlimited tech support where you can call us with questions.
We can even dial into your software. It’s only hundred $199. For you guys, I would recommend
the three-day webinar series. I think that is probably the best
thing for you to do. It is happening May 15th through May 17th. That is
a Tuesday, Wednesday, and a Thursday. So let’s take a couple or 3
questions and then finish up. So David, Sima, I’ll
turn it over to you Sima in a second, but who has questions? David: A couple or 3, huh? Could you show adding an
account receivable transaction that is outstanding at the beginning
as well as setting up balances? That’s a little detailed. Gregg: No, no, I got it. So when
you are entering opening balances for accounts receivable
or accounts payable, it is best to just enter the
invoice or the bill in QuickBooks with its original date. So
whatever the outstanding invoice is you enter that outstanding
amount in a QuickBooks invoice. That is how you would
handle it. Next question. David: How do I make it be
donors instead of customers? Gregg: Oh, okay, I can show you that. Well, it is a set up thing,
so you go to the gear. You all are still with me, right? Don’t
go anywhere. We are going to keep learning. You go to the gear, and you
go to Account and Settings, and you go down to Advanced
at the bottom. Whoops! Why did that happen? I
have to sign back in again. Sorry. There we go. Let me
get back in here. Sorry. It is a preference or a
feature that you turn on. So you go to the gear
in the upper right, and you go to Account and Settings. This is very, very frustrating. See this is what drives me crazy about – look at this David.
What’s the next question? David: You know you make it take longer
when you hit the little circle, just an FYI. Gregg: Oh, you getting smart with me? David: Well, I saw you hit the little
circle and that makes it take longer. Gregg: How many people were
annoyed with me like David? Chat me up if you were
annoyed with me like David. I’ll do what you say. Look at this. Let me just say this.
It is in the preferences. If you go to the gear, you
go to Account and Settings, click on Advanced, and it
is all the way at the bottom. It is called, “donor category” or
something like that, “customer category.” Okay, next question. David: Oh yeah, that’s taking. You’re
going to hit the little circle again. Budgeting by class with a question mark. There we go, oh, it took you out again. Gregg: Yes, you can budget by class.
Yeah, it’s not going to let me do that. You can budget by class. When
you are in the budget screen, you’ll see a category,
a field at the right that says “subdivide by,” and you can
pick either “class” or “job” there, and then you can do a
separate budget for each class. Next question. David: Do you think it’s a smart
idea to integrate with PayPal? They heard it was a bad idea. Gregg: I do not think it’s a good
idea to integrate with PayPal, because when you integrate with PayPal,
and you integrate with your bank, you better know what you are doing, because QuickBooks picks
up the PayPal transaction, and then QuickBooks picks
up the bank transaction, and many people that do
it’s end up with doubles. Their income is doubled and
I’ve seen it a bunch of times. So I am not a big fan of
linking to a PayPal account. Next question. Get it from the bank. Sima: I think we have time for maybe
just one more question before we wrap up. Gregg: Okay, okay. David: I have an important correction. Why didn’t he list his programs
as a subset of programs, so you get a total for all
programs and expenses on your 990? Gregg: Oh, he totally, I totally
should. I agree with you completely. I usually do it, but I didn’t get
a chance to teach it. But exactly. You can have subclasses, and if
you have programs with the programs as a subclass, then you’ll be able
to get the total of all your programs. Additionally, some people
like subclasses anyway. You know you’ve got like
a program called education, but then underneath that
you’ve got 3 or 4 workshops and you want to see them separately,
so you can make them a subclass. You can go in 5 levels if you want to, may be
more. I haven’t tried it in the Online Edition. You should try it some time. David: I think we have
answered over 215 questions, and were running over. So do
you want to wrap it up Sima? Sima: Yup. Are you good Gregg? Gregg: I don’t know. I think
I want to keep going. No. Sima: We have another one
next week, so I’ll [indistinct] Gregg: I will see you on
May 15th through May 17th, May 15th through May 17th,
the one on the 15th as well. Sima: So thank you Gregg,
for presenting today. Before we go, if you guys could
just chat one thing that you learned in today’s webinar, it is always
helpful for us to see that information, so we know what to teach
in our upcoming webinars, and what you guys really want to learn. Also, you should be
getting a post event survey, so if you have any feedback for
us there that also really helps us. We are on social media, so if you
guys are on Facebook, Instagram or Twitter, please give us a follow.
And we also have a blog where we post a lot of tips and tricks, and
how-tos and important information at blog.techsoup.org. We have another webinar with Gregg
next week as he just mentioned, on 3/15. That is QuickBooks Online
for Existing Nonprofit Users. And then we have 2
more webinars in March, so Cloud Identity For Nonprofits:
How City Year Streamlins User Access to Advance their Mission, and also, Digital
Fundraising Tools and Trends in 2018. So just again, I want to thank
Gregg, David, Megan, LaCheka and Alison who are all answering
questions on the backend, and Gregg and David for their
information over the phone, and also to our webinar
sponsor ReadyTalk. Again, we’ll be me emailing this out,
and it will be posted on our website. If you have any further
questions, feel free to email us. And that’s it.

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