Webinar: QuickBooks Online Plus for New Nonprofit Users 2019-03-08

Sima: Hi everyone, thank you so much
for joining us for our webinar today, QuickBooks Online Plus
for New Nonprofit Users. Before we get started, I just want
to go over a few housekeeping items. So all callers will be muted. If you have
questions, feel free to use the chat box that you see on the
left-hand side of your screen. If you have to drop off early or if
you want to watch the webinar again, we will be emailing out a
recording and a copy of the slides once the webinar is over to your
email. And we will also be hosting it on our website at
techsoup.org/community/events-webinars. If you are on social media, feel
free to tweet at us @TechSoup using #tswebinars. But like I said
earlier, we will be using the chat box that you see on the
left-hand side of your screen. So just a little bit about
TechSoup before we get started. We are in 236 countries and territories, and we serve over a million
nonprofits around the world. We partner with several technology
companies like Adobe, Intuit, Microsoft, Symantec and several
others, hardware and software to make our mission possible offering
donated or discounted technologies. We also offer several other things
outside of hardware and software like tech consulting, Apps4Change.
We have TechSoup courses. We have cloud consultancies, so several
other services offerings as well. So before we get started, I just want to
make sure that you guys can hear me okay. So if you don’t mind
trying out the chat box and telling me what city you are calling
in from, and I will read out a few just to make sure you guys can hear me. All right, Tucson, Dallas, Vallejo,
Reno, Orlando, San Francisco, Knoxville. Okay, perfect. So you guys are
calling in from all over the country. Awesome, all right, so I’m going
to go ahead and make introductions. So my name is Sima Thakkar and I
am the Senior Manager of Content here at TechSoup. My colleague
Zerreen Kazi is the Marketing Associate at TechSoup, and she will be
helping out on the back end if you have any technical questions.
And then we have our main speaker Gregg Bossen. So Gregg Bossen is the
Founder and CEO of QuickBooks Made Easy. Gregg is a practicing CPA and Advanced
Certified QuickBooks Pro Advisor with a full-service accounting
firm located in Atlanta, Georgia. He is also the Founder and
CEO of QuickBooks Made Easy. And since 2000, Gregg has been
teaching live QuickBooks seminars around the country specifically
designed for nonprofits. He is considered to be a
national expert in the program. So I’m going to go ahead and pass it
off. And actually, before I do that, we also have Bill Sims,
who’s Gregg’s colleague who’s going to be jumping in here and
there also. So I’m going to go ahead and pass it off to Gregg. Gregg: Thank you Sima. And how’s it
going everybody? I’m Gregg Bossen. And first thing I want to do is kind of
like Sima, I want to make sure everybody can hear me. So just give me like a
“hi,” or “hello,” something in the chat, and let me know whether or not I sound
too loud, too soft, or just right. Let me know if I sound okay.
Everybody says I sound good. Yes, you can hear me. You
can hear me that’s wonderful. All right so everybody seems happy. Leslie is from South
Georgia. I’m from Atlanta. I don’t know where in South
Georgia are you from, Leslie? But anyway, so I want everybody to understand
that this is not your typical webinar, because I’m going to be
asking you a lot of questions. I’m going to be waiting to hear answers.
I’m going to be calling you out by name. Oh, Augusta, okay, my – Douglas lives
Augusta. Leslie is near Valdosta. All right, but anyway, we
will move on from there. Anyways these are smaller towns. But anyway, so I want you to understand
that you’ve got to pay attention. This is not one of those things where
you are going to be like half doing stuff on Facebook blah, blah, blah,
because I will be calling you out, because we are going to be learning
here. So the objectives today is to understand, first of all
the different QuickBooks products and what’s best for you. Most of
you probably already have QuickBooks, but I just want to
cover that for a second to understand what the
different choice is out there in case you hear somebody saying, “Why
didn’t you get this version or something,” so you kind of understand where
you are in the pecking order. Then I will talk about
QuickBooks Online, and basically help you
get around in the program. And then we are going to give you
the basics of how to properly set up your organization in QuickBooks. That’s
kind of what we’re going to do here. This just kind of let’s you know that
you can buy QuickBooks Online directly from TechSoup. I don’t know
why it is – there we go. I was looking for my little arrow here. You see, QuickBooks Online, you can
get a one-year subscription for $50 from TechSoup. So if you are already
on QuickBooks and you are like, “What? I’m paying $30
a month or $40 a month.” You need to get it from TechSoup,
and we will talk more about that in a second. So if you are
freaking out now, don’t worry, because it’s only $50 a year versus
a monthly if you get it from TechSoup. TechSoup is awesome. But
anyway, again myself, I am a CPA with an accounting practice in Atlanta,
Georgia. So very much like the person who does your financial statement,
audit, or your 990, that’s me. I do about 30 audits a year of
nonprofits. I do about 100 990s a year. We have hundreds of
nonprofits around the country that call in with tech support
agreements, so I do all of that. But then I also own
QuickBooks Made Easy. And QuickBooks Made Easy is basically
all about teaching nonprofits how to use QuickBooks. And we do this
through training products that are on DVD. They come along with a handbook,
although they are stream-able now, so you can stream them as well. And
we also have tech support agreements, and then we have live
seminars around the country, and we have webinars as well. Now
this webinar is only a hour and a half which isn’t very long, but I want to
point out something that is coming up on May 21, 22nd, and
23rd. We have our online, this is our QuickBooks Online webinar
series. It’s two hours a day for three days, and we are going to give you a
pretty big discount if you sign up. We have got to give you a coupon though.
We are also going to give you a coupon to get discounts off of tech
support. We will do that later on. You have got to see whether
or not I’m any good, right? So these are the codes right here, but we
will show them again a little bit later on. So let’s not worry about that right now.
So the first thing that I want to talk about is the different versions. Oh, you
know what, before I even do that, let’s do a poll. I forgot about this. So I want every single person
to answer this question. This gives me an idea of where
you are in terms of your experience with QuickBooks. How new
are you to QuickBooks? And I want everybody to answer.
Never seen it, scared and nauseated? Saw it, closed it, still nauseated? Kinda know QuickBooks, but not
really well? I know QuickBooks, but I don’t know it for
nonprofits, which is important and it’s very different for nonprofits.
I do know QuickBooks for nonprofits, but I have questions? And
then I’m a QuickBooks master, and I’m just here to heckle you?
So we’ve got 174 people in the room. We’ve had about 100 people
answer. So we’ve got 74 people that are not listening to me
right now which is very upsetting. You know I have a lot of emotional issues
and I need to have a lot of attention paid to me. Bob, Brad, Brenda, Kathy,
Chris, Dale, Don, Jessa, Joann, Judith, is everybody answering? Keep
going. I want every single person. Catherine, Maria, Mary Beth, I love
that name. Mary Beth get off the phone and answer, all right. Adrian.
So Jess is here, okay, great. All right so let’s go ahead and show
you the results here and we’ll see. Now it looks like we’ve only got about
the first two about 20% of you, 18 ½% are nauseated whenever you see
QuickBooks, so that’s not bad. About half of you kind of know
QuickBooks, but not that well, and that really helps me. And
then we have about 30% of you that know QuickBooks, but have
questions about nonprofits, so that kind of gives me the lay of the
land here. So thank you very much for that. So this is our agenda for the day. We’re
going to talk about what QuickBooks is, and what it’s not, and what
QuickBooks products are available, what’s best for you. That’s
only going to take a second guys. Don’t worry, I’m not going to
waste your time with that too much. Then we’re going to spend the
rest of the time in QuickBooks, so almost a hour and 15 minutes in
QuickBooks going over how to get around, how to set things up. We’ll have
some time at the end to enter budgets, and we’ll be answering
questions throughout. So thank you Rachel, I see
that. Brenda has never seen it. Isn’t this kind of cool? You can type
something, and then I can like see it. It’s really neat. Technology is cool. All right, so what is QuickBooks?
First of all, this is pretty basic, but it is a financial software
package. And they just always – TechSoup always likes me to point
this out. It is an accounting package. It will give you financial statements,
but it will also track your invoices. It will track your expenses. It
will print checks. It will do payroll and process credit cards,
but you have to pay for that. And then people always want to know
is QuickBooks a decent database? And yes, it is. You can get donor
reports. You can get donor letters. Now you have to understand
how to set things up, and enter transactions so you can get
that. It’s going a bit beyond the scope of this webinar, but it is
something that we will be covering in our three-day webinar series. So
you might want to pay attention to that if you want to use QuickBooks
as a donor database. So that is kind of the deal
with that. So QuickBooks options. So I’m going to go ahead and share my
screen here, because I want to tell you – Let me going go ahead
and share the screen. All right, so right now you should
be hopefully, seeing my screen. And what you should be seeing is
the screen in QuickBooks Online. So somebody chat me, at least one person,
and tell me that you are looking at – that you see this number $143,211.
Does everybody see it? Okay, great. Now the other thing I want to know is it too
small, is it too big, or is it just right? Does anybody think this is too small?
Does anybody think it’s too small? Tell me if the screen is too small. Bob
says it’s small. Tracy says it’s small. So you can kind of maximize. It’s
kind of hard to make it bigger. Now I do have this little zoom thing,
and I will try and remember to do that from time to time for those of you
that have a really hard time seeing it. But I think if you get rid or collapse your
chat box, then it gets a little bit bigger. So anyway, we will try. Ed says
the audio is cutting out a bit. Is there anybody else that is
experiencing that? Let me know. So all right, Bob said it was better when
he expanded his screen, so that’s good. All right, so let’s move. So
what you are looking at here – the first thing I want to cover is
the different choices of QuickBooks, and what you are looking at is
the Online Edition of QuickBooks which is what this webinar is about. Now QuickBooks has another edition,
it’s called the Desktop Edition, and that’s what this one looks like. So
this is the desktop, this is the online. If you are looking at the screen, and
you say this is what your QuickBooks looks like, guess what,
you in the wrong webinar. Okay, this webinar we did two days ago. So is there anybody who is in the
wrong webinar? So go ahead and chat if they are in the wrong webinar,
so that the people at TechSoup can make a note of it, and they may be
able to send you a copy of the webinar that we did a couple of days ago. So just curious, is there anybody
that’s in the wrong webinar, chat me up if you are. I want to see
if anybody is in the wrong webinar. Yes Sandy, Rosemary is in
the wrong webinar. Okay. Aaron is in the wrong webinar. Yes,
this was done two days ago Aaron. We are in this one right here, and
this is what we’re going to learn today. So those of you that are in the wrong
webinar, let the know through the chat, and they will take care of you, and give
you a copy of the one from two days ago. So this is the Online Edition.
Now I think the next thing that I want to explain to you is
that there are different choices of the Online Edition. And I think
probably the easiest way to do this is to just go into QuickBooks.com,
and I’m going to show you the different choices of QuickBooks.
So if you go into QuickBooks.com, and you say you want to buy QuickBooks
these are all the different choices. Okay, I’m going to zoom
in just so you can see it. So there are actually five choices.
There’s Simple Start, Essentials, Plus, there’s this new one called Advanced, and
then there is this one all the way over in the right called Self-Employed. Now let me tell you right now, of these,
the only two that I want you to use is either Plus or Advanced. The
reason why is because these other three Simple Start, Essentials, and
Self-Employed all the way to the right, they will not have budgeting, and they
will not allow you to track your programs. So you must use either Plus or
Advanced. And to be honest with you, Plus is fine, and Plus is the
one that you can get at TechSoup. Look at how it is $30 a month it
says here. It’s really $60 a month. You just get that discount for a few
months and then it goes up to $60 a month. The one at TechSoup is $50 a year.
And let me just cover this right now, so Plus is the one I want you to
have. And if you don’t know by the way, which one you have, let me go
ahead and show you what to do. When you dial into your QuickBooks,
and here’s QuickBooks right here, if you want to know which one you have,
and there’s a couple of different ways of doing this, but if I click on the
gear, and I click on Account and Settings, this takes me to what I call the
“preferences” that QuickBooks has. That’s what they call it in the
Desktop version of QuickBooks, but in the Online it’s
called Account and Settings. I’m going to click on that.
And it’s important that you know where your preferences are,
because you may very well be going to those preferences
to do certain things. There are things that
you can turn on or off. But if you go to Billing &
Subscription. This is a column. These are the different categories
of preferences over here. And if you click on the one that
says Billing & Subscription – Kimberly, you get the Plus version with
$50. You get the Plus version for $50. All right, so it tells me right here
I’m getting the Plus version right here. So this will tell you
which version that you have. So now the next thing, if you have –
is this the Online QuickBooks webinar? Julianne, yes, it is, and
we’ve just gotten started. Now if you have the Online
version of QuickBooks, in other words your QuickBooks looks
like this, but you are not getting it, or you didn’t get it from TechSoup,
and you are paying a monthly fee, give me a chat. Chat me up if you are
paying a monthly fee for this thing. Let me know. Let me know. Is anybody
paying a monthly fee for this, because they didn’t get
it from TechSoup? Anybody? Okay, so Carla is.
Gwenn is paying monthly. Yes, so if you are paying monthly,
obviously you don’t want to do that anymore. So what you want to do is you
want to get the Online Edition through QuickBooks, I
mean through TechSoup. So to get that what you have
to do is you have to basically back up your online
file that you have now, and then restore it to a new online account
that you get through QuickBooks Online. So it’s a little dicey. The
way to back up your online file, and this is something
people want to know anyway, if you have QuickBooks Online, there
really isn’t a need to backup the data file, because it’s very safe. It’s double
encrypted. It’s in a server somewhere in a cave in Pennsylvania, and it’s in
multiple locations, extra copies of it. But if you are still the kind of the
old-school person where you want backup, I’m going to tell you about a site called
Chrono Books. C-h-r, ChronoBooks.com. Chrono books, and I don’t get
any money from them or anything, but this little software, it
will allow you to backup, restore, and copy your QuickBooks
Online Edition, and it’s free. And that’s what you’ll need to do to backup
the one that you are paying monthly for, and to upload it to the new one
that you get through TechSoup. Yes, Floyd if you are not a 501(c)(3)
you can’t get QuickBooks through TechSoup. Sorry about that. So
there we go with that. So now that I’ve talked
about the different versions, and the one that is best for you, the
other thing that I want to tell you is that the thing about QuickBooks Online,
one of the things they like about it, is with the desktop, every time
they made a change to the program they had to push out the change.
You had to download the change onto your machine, because
that is where QuickBooks was, and then you had to install it, and
it’s –blah, blah, blah, blah, blah. So it was a big pain in the
butt. With the Online Edition they don’t have to do any of that,
because they house the program. It’s not on your computer. It’s on their
servers, so they can just make a change. The downside of it is that, and you
know this, you’ll open up the program and all of a sudden there
will be this new thing on there that you didn’t know was there
before. It wasn’t there before, or maybe something is in a different
place. Like this stuff over here used to be in the middle. Now it is on
the right. They changed the wording here. I mean they change things all the time,
and they don’t really tell you about them, it’s just changed. So if you
are curious, if you want to know what changes in QuickBooks, because
they usually make a change every month. If you go to this website, it’s
QuickBooks.intuit.com/blog/whats-new/. Okay? QuickBooks.intuit.com/blog/whats-new/.
And let me actually, let me zoom in so you guys can actually see the
URL and you can write it down. This website will tell you what’s
new every single month in QuickBooks. Pretty cool? I bet you are
busily writing it down right now. But anyway, if you look here,
you see what’s new in QBO. That’s the fancy-schmancy term they
call QuickBooks Online for February, and then you click it, and
it will tell you what’s new. There we go thank you
Zerreen, she posted it. So anyway, that’s a very
cool little thing to go to. So let’s talk about how to
get around in this program. And those of you that kind of know
QuickBooks, you are still going to learn even if you know it pretty well. But
understand there’s about 20 to 25 people in this class that have never even seen
it before, so let’s just be cool with me. This will just take a second. I’m
going to get them used to the screens. So when you go into your
QuickBooks Online account, and it’s an online account so
– I should really even start by you just go to your QuickBooks login.
I think it will just pop me right to it. But it takes you to a screen where you
put in your username and your password, and then once that is in, you get to the
screen. And this is called the homepage, or the dashboard is what they call it. It has a lot of screens on here that
won’t really be very helpful to you. The expenses will be helpful. It gives you
your expenses. It’s its own little chart. It’s kind of cool. You can
change the date range here, but the income and the sales
line may be blank for you. And the reason why is if you are not using
the sales forms to enter your transactions, these will be blank. This says
Income. It only relates to income that has been invoiced to a customer
which means you go to the Invoice button, and you enter invoices. And
there are some nonprofits that enter invoices out of QuickBooks,
but most of you don’t even do invoicing. So most of you, this income line will
be blank, because you don’t do invoicing, so this will be meaningless. Same with
sales, if you don’t use the invoice form or another form in QuickBooks
called a Sales Receipt which turns out to be a very important
form, if you don’t use that form to enter your income, this will be blank
too. So if you are just a downloading person, and you signed up for QuickBooks
Online, and you just download it, and think everything will be perfect, these
two things, reports will be blank for you which is fine, but you can’t
make them go away. The point is that most of the stuff that is on
the screen here is kind of junk, and not very helpful to you. So I’m
going to give you the three main places that you are going to need to
go to do things in QuickBooks. If you want to set things up which
is what we’re going to be doing today, setting things up. You see
this tiny little gear thing? Some people think it looks
like a flower, but it is a gear. It’s at the top right of your
screen. Sorry if I’m speaking like you don’t know anything about computers,
because I mean I’m just trying to teach for everyone. But anyway, I know
a lot of software have these gears. But if you click it, this is
where you go to set things up. For instance, we are going to set
up our chart of accounts in a minute, and this is where your
chart of accounts is. Now if you don’t want to set things up,
but instead you want to enter transactions, that’s what you do with the plus
sign. You can think about it this way, I am adding a transaction. So if you click
plus, this is where you go to do a check, this is where you go to do a bill,
this is where you go to make a deposit. Now you might be saying to yourself,
Gregg, I don’t go to any of those places. I just download, and that’s true.
But let me tell you something, if you download transactions
it’s effectively the same thing as either doing this check window,
or doing this bank deposit window. Either way you’ve still got to get
the chart of accounts set up correctly, so that you know where to
point your transactions. And that’s the point of
what we’re going to do today. We are going to look at how to set
up your chart of accounts correctly. But anyway, so this is where
you go to set things up. This is where you go to add
transactions unless you download. You’re downloading of transactions
happens in these windows. You just click it, and it gives you a list
of transactions that have been downloaded from the bank, and
then you add them here. The only other place that people go
to – I’ll just click on the Dashboard to get back up to the main dashboard.
The only other place that people go to is this Reports section. This
is where all of your reports are. So if I click on it, say I want
to get a P&L, Profit and Loss, you just click it and here’s
where your profit and loss is. Don’t have a lot of stuff going on
there, but I can change the date range, so that it will actually give me some
data. All Dates, and then I’ll click Run. There we go. So let’s do this
again. Let’s go over this real quick. Where do you go to set things
up? This little gear here. Where do you go to add
transactions? You tell me. Where do you go to add transactions?
Type an answer. I want to know. Where do you all go to add
transactions? Yes, the plus sign. Thank you very much [indistinct].
So that’s where you go to do that. If you do download, you’ll go to the
blue section. And this little thing over on the left with all these
words, I don’t barely go here. The only time I go here is when I’m
looking for reports, and that’s it. Timothy calls it a Philips screw. It is a
Philips screw. I never even heard of that before. That’s awesome. All right, but anyway,
that’s basically all I need to say about getting around in the program.
Does anybody have any questions that I was not able, or didn’t get to
about how to get around in the program? Anybody have a question? How
do you download? Huge question. So basically, in order to download
I have a whole webinar just on that. But do you see where you
go to connect accounts? You click Connect accounts
right here. You put in your bank. And you can download from a
credit card, or you can download from a bank account either
one. If it’s a credit card and it’s a Visa or a MasterCard you
pick the bank that it relates to. And there’s more than just these.
There’s more than just these. You can type any bank you
want here, and it will appear. But I’m just going to type “AMEX”
and here’s my Amex. You can download. Amex is their own bank. You click it.
You put in your username and password. You click Continue, and that’s
how you link your account. Once the account is linked,
mine is already linked, it will start downloading transactions
and it downloads them every day. They don’t go into QuickBooks directly,
rather they simply go into this list which is over here. And then when you
are in here you pick, it says “Category,” but what they really mean is “account.” You pick the account that you want
it to go to. So I will click on here. It says Category, but they really
mean the account which is the expense and income accounts in
your chart of accounts list. So Katrina, how easy is it
to migrate from the desktop? It’s very easy Katrina. They’re going
to make you – make it easy for you. If you click on your Desktop version,
the first thing you do is set up an account with the Online
Edition. Once you set up an account it will be like a skeleton company
with just a name of the company, and nothing else. You don’t
need to put anything in it. Then you can move all of your
data into it by going over to where it says Company, and Export
Company File to QuickBooks Online. You click here. You put in the
username and the password for your QBO, your QuickBooks Online account,
and it will upload it for you. So it’s pretty simple to do. My
dashboard looks different from you, is the dashboard
customizable? Holly says. In the Online Edition it really
isn’t very customizable at all. So my guess is maybe your screen is
smaller than me, so things are organized a little bit differently, maybe
some of the names are different, maybe yours looks like this,
but it should be the same. Rachel, welcome back. All right, so is
there anybody else that has a question? What if you want to upload a QuickBooks
that is not an Online version? I just showed you how to do that. Do your memorized reports
and transactions transfer over when you go from desktop to
online, Lee said? They do not. You’ll have to re-memorize your
reports again. Sorry about that. On my dashboard the P&L card just
shows income. Is that all income or just the invoices
like the income card? No the P&L card she’s calling
it, is all your revenue. This is basically anything
that hits an income account. So I’m not sure why it is that
it’s not showing your expenses, because it should be unless
you didn’t enter any expenses, or you entered them incorrectly. So I want
to move on to the chart of accounts list. And I’m going to do a couple
of things here. The first thing, I’m going to talk about the chart of
accounts list, but I do want to point out – there is one more thing. I’m sorry. There’s
one more thing that I want to point out here. Anytime you are in QuickBooks
and you are looking at a window, you are basically looking at a webpage.
So I want you to look at this page. You see the web address of the page
that we are on, and I will just zoom in so you can see it a little bit better. You see how it says
HTTPS://c13.qbo.intuit.com/app/hompage? This is a webpage. So if
you go to a different screen, say I want to open up a report. I’m going
to click on – I’ll go to a P&L report. I want you to look at the webpage.
See how the address changed? It’s a different address. So every
single time you open up a window, it’s a new webpage. So how do you suppose
you would be able to see two windows at the same time? And you all
tell me. What do you think? Charmian you – it uploads
everything. You don’t choose a date. Okay so how would you – Amy is
right. You have to open up a new tab. And I answered Charmian’s question.
You have to open up another tab. Now I’ll make it easy for you to
see how to open up another tab. First of all, I am in Chrome
which is what Intuit suggests that you use when you are using QuickBooks.
It just works better than the others. But I’m going to go to this tab in
Chrome, I’m going to right-click it, and I’m going to click
Duplicate, and it automatically – you don’t have to sign in again, it
just takes you to another second instance of the program. I will go in
here and I’m going to change this, and I’m going to look
at a different report. I’m just going to look at a balance
sheet now. So this is the balance sheet, and this is the P&L. So if you
want to see them at the same time, you kind of have to separate
them out, so that you can see them at the same time. See what I’m saying? So
that’s kind of what the dealio is with that. But one of the reasons why I like to
show the balance sheet and the P&L – let me see if I can get them both,
so that you can see them real easy. You kind of have to maneuver
the screens a little bit to get them so you
can see them together. The best thing is if
you have double screens. If you have dual monitors, and
monitors aren’t that expensive. You’re like yeah right. I’m a nonprofit.
They’ll never get me another one, but it makes life so much easier in
general, but certainly in QuickBooks, because it’s very easy to
just see two screens at once. I’m going to move this
thing over. There we go. And let me move it in a little
bit, and make it smaller. See how much of a pain this is? But
now I can see them at the same time. One thing too that I think is kind
of cool, you can make this bar go away on the left-hand side. You see these
three lines if you make it go away? Then – and I’ll squeeze it in a little bit.
Now I can really kind of see both things at the same time. So that was a lot. Yes, Kelly is right.
Double screen is worth it. All right so the whole purpose of accounting
is to basically create these two reports. The balance sheet gives you a picture of
what you look like at a certain point in time. The P&L shows you a movie of
transactions over a period of time. And it’s very important that
when you set your books up, there’s all these lists that you
need to set up. And the very first one is your chart of accounts list.
It’s the most important list of all. And each one of these lines are the lines
that are in your chart of accounts list. So you need to set up your chart of
accounts list with the idea in mind of what you want the P&L and
the balance sheet to look like when you report to people. So that’s basically
what the chart of accounts is all about. It’s basically the lines
that go on the two reports. So I want to talk about your chart
of accounts list, where is it? And I’m going to talk about
it in kind of two ways. First thing I want to talk about
is just basically, how you maneuver around the chart of accounts
list, how you add an account, how you subtract an account, how you
edit an account, those kinds of things. And then after that we are going to
talk about what your chart of accounts should really look like. And that’s kind
of what – I’m going to make this big again. Sorry, I’m making you sick
with all of these screens. But anyway, we will just
stick to this one screen again. So when you set up a QuickBooks
Online file, and I assume most of you – it only takes two seconds to set it
up. You just put some basic information. It gives you a chart of
accounts, and it will be wrong. It won’t have the things you want,
and it will be kind of a mess. And I encourage you to change it
and make it be like you like it. To add an account, to edit an
account, to get rid of an account, I’m going to show you how to do it. First of
all, where do you think the chart of accounts list would be? Where do you think
you would go to get to it? And it’s one of those things I have talked
about. Where do you go to set things up, because that’s where the chart
of accounts is? Now Tracy, plus, that’s where you
go to add a transaction. So gear, or Anne said the flower,
that’s where you go right here. Now some people are saying you can
go over to this Accounting section. You can get to it. That means you
have already realized that it is there, but most people don’t understand
this stuff. I usually make it go away. So you are right, but I’m telling
you just make it easy for new users. We’re going to go to the gear, and here’s
where the Chart of Accounts is right here. So that’s where your chart of accounts is.
So the next thing I need you to understand is how to add an account. Now you
will see that there is an account – there’s a button at the top left
that says New. And you can click on it and it will allow you to add an account.
So the first thing we’re going to do is we’re going to talk
about how to add an account. So the first thing that you have to do
when you are creating a new account – and believe me, if you don’t understand
what your chart of accounts should be, we’re going to talk about that after.
Right now we are just kind of giving you the nuts and bolts of how to deal
with the chart of accounts list itself. So the first thing it wants to
know is what type of account it is. And the types are very
important, because they determine whether the account and
the numbers related to it appear on the balance sheet
or on the profit and loss. So if I pick income as my type of
account, where do income accounts appear on the balance sheet or P&L? You
all chat me up and give me an answer. Balance sheet or P&L? What do you think? Heather’s got it right first, yeah P&L. Now if I pick Bank account,
where do bank accounts appear? Balance sheet or P&L?
Balance sheet or P&L? What do you think?
Yes, the balance sheet. Now if you do pick the wrong type, in
most cases, you can change the type, and move it, and it will move the
account as well as all the transactions to the right statement that
it is supposed to be on. But anyway, I’m going to create an
account. These account types are fixed. You can’t create your own, and they
are second nature to whoever it is that does your tax return,
or your audit, or whatever. They are second nature. So if you don’t
know what type it should be, ask that person. Now, but I’m just going to ask
you, I’m going to create an account for a very expensive piece of computer
equipment I bought. It cost $50,000. What type of account is that? And it’s one
of these on the list. Fixed Assets, perfect. So I click that. Heather, you just
won $10,000 for answering first. Way to go Heather. Just kidding
you are not winning $10,000. So here’s the type. Now they have this other
thing here that’s called the Detail Type. This is meaningless. Do not fret about
this. All this is, is a suggested name, and they have some suggested
names. So I want to call mine computer equipment. I don’t see anything
in here that says computer equipment. It’s irrelevant. I will just
click Fixed Asset Computers. The name is what appears
here. So watch what happens. I click Fixed Asset Computers,
and that’s the name that appears, but then I can just change it
to the name that I want it to be. And I will put in “Software.”
All right, that’s it. Now the next thing that they want
is they want an account number. Now account numbers are a way of
identifying an account with a number in addition to a name. Instead of
it being called Computer Equipment and Software, it is also known
by its number which is 1610, or something like that.
So I’m going to put “1610.” And the numbers turn out to be very important,
and we will talk about that in a minute. The rest of these fields you can leave
blank. You do not have to put anything into the Description field. You
don’t need to have a subaccount. You don’t need to put the
Original cost if you don’t want to. So you don’t need to put anything
here. You can leave these fields blank. So I’m going to click Save and
Close. And it creates the account. And now I will be able to use the
account when I am entering transactions. Now if your screen does not have a
number field, which Holly’s doesn’t, that means you have to turn the
feature on, and we will talk about that in a minute. And I think
you’ll be very happy, because there’s a very important reason
why you’ll want to use account numbers. So that’s how you add an
account. Now I want to talk about how to get rid of an account. And
let me just tell you something here. Let me paint you a little – subaccounts
do need numbers as well, Lymon. So let me just tell you something here
now. I want you to listen very carefully because this may be you. The
nonprofit started years ago. Doing bookkeeping is not what they were
into. So they didn’t really do very much. Maybe they kept it on pieces
of paper. Then somebody went and got QuickBooks and they
didn’t get any training. And so any time anything needed to be
tracked, they created an account for it. And so the account list started growing,
and it had all these weird things in it that nobody knew what they
were. Then that person left. Then the next person came in. They didn’t
have training and bippety-boppity-boo they keep adding accounts. Then
they leave, then you come in, and suddenly you are looking at
a giant chart of accounts list. It’s huge, and you don’t even
know what half these things mean. And basically, you tell me that –
Stephanie’s like yes, you know us – we’ve inherited a mess. So tell me
how many of you are listening today, that say do you know what,
I have inherited a mess. Douglas, we will get to you in a minute. How many of you have inherited a
mess? I just want to see. Yes. Yes. So it’s a lot of us. So listen carefully,
and this is almost like a therapeutic thing I want to tell you. Let me tell you
something. You are the one in charge of the books. If you don’t know
what an account is, get rid of it. Don’t be scared to get rid of
an account, do not be afraid. And let me show you, when you go to
get rid of an account you just click on the right-hand side here,
and you can’t delete it. And by the way this used to
say “Delete” a few months ago, but it never really deleted the account,
rather it makes the account inactive. So you can make an account inactive
even if it has transactions in it. So don’t worry about that. This
account, I will make inactive, and it’s just going to disappear. Now I can scroll down. Move
this thing. I can scroll down and I’m going to go to an account – that account didn’t have any
transactions in it, but I am going to go to an account that does
have transactions in it. And let’s see – I just have to find where
is the account that I am looking for, and it is not here. That’s really frustrating.
All right, so we won’t worry about that. What I want to tell you is – well, I will
try one. Let me see, I will try and delete Repairs and Maintenance. Well, you
don’t delete it, you make it inactive. Are you sure? Great. Now it’s still
there. It will still be on reports. So let me go to – I’m going
to pull up a profit and loss. Let me go to the dashboard here. And I am just going to pull up a report. And even though I had deleted,
what was it Repairs and Maintenance? Repairs and Maintenance will still be
here as long as there’s some transactions associated with it. Let’s see,
I’ve got a make the date range. Here we go. Here’s Repairs and
Maintenance. It’s still here, it just says deleted next to it in
parentheses. So it’s still there. It’s just that you can’t use
it on future transactions. So in other words, when you go to
enter a transaction like a check, or a bill, or something like
that – we will click on a Check. Notice this says CATEGORY
they mean account. You just won’t see it in your list.
So you won’t use it in the future, but it will still be there in the past. A common question people have is they
want to be able to see the account that have been inactivated.
Now this is a little weird. Now do you see a little gear, or a
flower, not the big one at the top, but the little one that’s at the
top of the chart of accounts list? It’s all the way on the right
there? Do you see it? I zoomed in so you can see it, but I’m going
to point at it. It’s right here. If you click on this gear it will
open. And if you click Include inactive, and you check the box, anything that
has been inactivated will appear. So we will go down to our Repairs
and Maintenance, and we should see – yeah, here they are now. And yes
Janet, you can make it active again by just clicking Make active,
and then it makes it active again. All right, so that’s what
the deal is with that. Mary, I just showed you how
to get the little window. You click this little gear right here.
You click it, and then you check this box that says Include inactive, so
that’s what the deal is with that. So that’s how you make something
inactive, and make it active again. How do you edit something?
Well, that’s fairly easy. You click over here on the right
next to the account you want to edit. You click Edit, and this allows you to
change the name of it, or the number. One thing that I like to do is if
I have multiple checking accounts, I like to put the last four
digits of the account number here, so that it reminds me, or so I
know which account I am looking at. And for some reason I get real, I
don’t know, superstitious about this. I like numbers – yeah, that looks
like a happy number, so I will do that. But anyway, I don’t
know. I need therapy. But anyway, so that’s
the way of changing it. Now if you change the name like
that, or you change the number, it is going to change all future
transactions, and it’s also going to change on all past transactions. So if you
look at a report that you printed out, say a P&L for 2017, and then you
change the name of an account, and you print that report out for 17
again, the name is going to look different. So if you are one of these where
once you print something out you don’t want it to ever look different,
well, then you can’t change any names. So that’s the deal with that. Now merging, now that’s another
thing that is kind of cool. You know what I think I’m going to do is
– let me see. I will do this one down here. So a lot of times we end up with multiple
accounts that are really the same thing. This happens all the time. I’m
trying to figure two accounts that I want to merge here.
Let’s see, I will merge – now I’m just wasting time at this point. I really should just pick two. But I’m
trying to pick two that makes sense, and I can’t find two that makes sense.
So let’s say Postage and Delivery and Printing and Reproduction.
Let’s say we just want to have one called Postage and Printing, and
we want to merge them together. So I’m going to tell you how to
merge it. I’m going to tell you how to get the numbers in a second. And Lisa yes, you should clean your
desktop up before uploading into QBO. So here’s the deal. I am
going to tell you how to merge, and then I’m going to show you. So what we are going to do is we are going
to basically pick a name that we want. So let’s say I want to call
it “Postage and Printing.” So what I’m going to do is I’m going
to change the name of both of these to the exact same name, Postage
and Printing. And when I do that it’s going to say, that name is already
in here, do you want to merge them? And you say Yes, and it will. So
let me show you how to do this. So I’m going to go over to the
first one Postage and Delivery, and I’m going edit it, and
I’m going to change the name to Postage and Printing. Now I’m going to change the other
one, Printing and Reproduction, I’m going to change that name
to Postage and Printing as well. You see that? And I will zoom in for
those of you where it’s too small. “The name is already being used.
Would you like to merge the two?” You say Yes, and it will merge them. Now not only is it
going to merge the names, but it’s going to merge the dollar
amounts as well. So if you notice here, you see how we have Postage
and Delivery as one line, and Printing and
Reproduction as another one? Now why do you suppose this has not
merged on this report by the way? And yes, Holly you can
do it on subaccounts. Why do you suppose this hasn’t
merged yet? I told you it merged. Why didn’t it? What do I
have to do to this report? Yes, I need to rerun the report.
That’s something that’s really annoying. You have to refresh the report.
So I’m just going to go over here, and I think I can just click this
Run button. And now if I go down, it says Postage and Printing. Now what do you do if you decide you
didn’t like this and you want to undo it? Any idea of what you do if you want
to undo it, because you didn’t like it? Any ideas? I’ll tell you what you do,
you do nothing because you are screwed. You can’t undo it. Once you merge
you can’t. See you later Janice. Yes, you are right Dean.
You can’t undo. That’s right. So once you undo it – once you merge
them you can’t un-merge them again. So let’s cover the account numbers
here. The account number feature, this is a feature that you can
turn on or off in the program. Now to get to the feature, where
do you think that you would get to the feature? I’m going to go
back to the homepage here, Dashboard. Yes, and the flower, or the gear.
I’m going to click on the gear. Now this is what they
call a “preference.” Do you remember where your
preferences are, the little settings you can turn on or off in the program? Anybody know where your preferences
are? They are in the gear, but where, which one
of these? Anybody know? Yes, Account and Settings. And when
you go in here, there is this column on the left, and this has all
of your different settings. They are in categories here. So the
one that relates to account numbers is Advanced. We push Advanced. And then do you see under Chart of accounts
where it says Enable account numbers? You click this. Make sure that’s on,
and you make sure that’s on as well. So once these are checked, that
turns your account numbers on. So the person who didn’t have account
numbers, now you know how to turn them on. Now once you turn them on, all of
your accounts will need numbers. So how do you add those numbers?
Well you go to the flower again, or the gear, and you go to
the Chart of Accounts list. Now there’s a couple of ways
to add the account numbers. See this one, it doesn’t
even have an account number. One thing you can do is you can click
on the gear, and you can click Edit, and then you can add
the number right there. But let me just say this, a lot of
times when you are trying to figure out what number you should put, you
don’t really know like what number you should put, like it’s hard
to know. So let me explain to you the account numbers. First of
all, there is not an accounting god that has said, “Office supplies,
thou shalt be ever known as 6285. Thy will be done.” That
doesn’t happen, okay? You can make the account numbers
whatever the heck you want them to be. So that’s the first thing
I need you to understand. Now you will see that in the accounting
world, usually assets are one, and liabilities are
two, and equity is three. You usually start with those numbers, but
you can even make them letters if you want. Now Kelly wants to know
why we need account numbers. Now let me tell you why
you need account numbers. The reason why you need
account numbers – I’ll show you. I’m going to turn these numbers off. When
you go to the chart of accounts list – I mean to the settings.
I’m going to Advanced, and I’m turning the account numbers off. Now when I turn the account numbers
off, I’m going to go back to my report. I’m going to refresh my report.
Now notice what happened here. I want you to look at the
P&L. What order is the P&L in? Look at the Expenses, Bank, Contract Labor,
Dues and Subscriptions, Health Insurance. What is the order this is in?
It’s alphabetical. That’s right. Now in the Desktop version of QuickBooks,
for those of you that are used to using it, you can change the order in
the Desktop version manually. You cannot do that in the Online
Edition. It is always either alphabetical, or numerical if you
use accounts numbers. So do you see why you would
want to use account numbers? Because if you don’t have account numbers
on, look at your first expense account, Bank Charges, that’s usually
not what you want to see. You want to see Salaries usually,
but that begins with the letter S. So the only way to control the
order that the reports appear in is to use account numbers. And
the order that they appear in here is either alphabetical or numerical. All right, so what we are going to do is we
are going to turn back on account numbers, Enable account numbers.
I’m going to click Save, and I want to show the
account numbers as well. And now when I go back to my chart of
accounts, you’ll see the numbers are there. And if I go back here and
just hammering home the point, look at this very carefully. I’m going
to go ahead and refresh this report, and you will see it’s now in a different order.
Salaries is up top which is where we want it. So yes, it’s for appearance’s sake. One more thing Kelly, this is
going to make your life better. You are going to be happy
about this. If you are thinking, “Oh great, Gregg, I’ve got to go
in here, and I’ve got to click Edit, and I got to add each number, click
Save, then go to the next account, click Edit, I got to put
the number, click Save. And I got to make sure that I do it in the
right order,” that’s a pain in the butt. So over here, let me zoom in
again. You see, not the little gear. That’s where we went to get
things inactivated to show, but do you see the little pencil there?
That pencil, if you click that pencil – look at this. I can go in here and
change these numbers all at the same time. Isn’t that cool? So you can see
easily what the order is going to be. So you’ve got a tell me that’s
cool, okay. So somebody tell me that that’s cool. Okay, yes,
thank you. That’s really nice. Now before you go to do this,
when you are done you click Save at the bottom. But I’m just
going to save you some time here, go ahead and change like 20 of them
at the same time, and then click Save. Don’t do your entire list, because
sometimes there will be a glitch, and you’ll do the entire list you’ll click
Save, and then there will be a hiccup, and then it will say it didn’t save, and
then you’ll have to do things over again. So just do like 15 or 20 at a time.
So that’s what the deal is with that. Now Lymon, his frustration is
the chart of accounts is too big which means that when they
run the P&L, it’s too long. So that’s why it’s very important to talk
about, we are going to talk about this next, what your chart of accounts
should really look like. So we are going to break this
discussion into kind of three areas. First, we are going to talk about what
the balance sheet account should look like, and then we are going to talk about
what the income and the expense accounts should look like. But before we do
that, I think what I’m going to do, because we’ve got about a half hour
left, and I like to kind of do things nice and easy here. So I’m
going to stop for a second. I’m going to go back into the slides,
and I’m going to run another poll. And this is a very important
poll for you to take. So to be sure that you take this poll,
we use it to make sure you are listening. We have got 160 people on the line. We
want to know what the meaning of life is, and I want everyone to answer. Now
think about this before you answer. What is the meaning of life? To
serve others, to love, family, insert deep spiritual message
here, and then the answer is 42? So tell me what the meaning of
life is. It’s very, very important that you understand the meaning of
life. I mean, otherwise what the heck are we doing here? So we’ve got about
60 people that have answered out of 159. So again, we’ve got people looking at
Facebook or going to the bathroom maybe. So Paul, Paula, Rebecca,
Sara, Stacy, Sue, Vonzella. Vonzella, what an awesome
name. Vonzella, are you there? Chat me up if you are there. I
want to see your name, Vonzella. Vonzella, are you there, Vonzella?
Okay, so Vonzella is in trouble, because Vonzella is not
listening to me right now. Oh, there you are Vonzella. Okay, so
let’s go ahead and skip to the results. And there we go. So number
one is to love which is great. The seminar we did a couple of
days ago that was number one. And number two we are
tied between serving others and the answer is 42 which
is awesome. I totally agree. And let’s see, Tom says, 42 is
the answer. What’s the question? And I would tell you that no matter
what the question is, the answer is 42. And if you don’t understand my sense of
humor, then that just means that well, I’m a weird person, so you’ll just have
to understand it. I’m a weird person. But it’s a fact that there’s a number
of other people that are weird as well. So having said that, there is one more
thing that I want to go through here. And this would be if you feel like
you are learning, and I am somebody that you can learn from. I have a
newsletter that comes out once a month. It’s only once a month. I promise
you, you will not get anything else. We are not going to advertise to you.
The newsletter is an e-newsletter, and it gives you a link to a YouTube
video that shows you how to do something in QuickBooks. So I want everybody
to answer either yes, or no, and then TechSoup will give
me these email addresses. I promise you, you will not be getting
a bunch of junk email from me, I promise. So yeah, I know Edward,
22% of you are weird. So we’ve got about 105 answers. We have
got 45 people that are still not listening. Bradley Wells, Bradley Wells,
are you there? Say hello, Bradley. Bradley, are you there? Bradley?
Bradley? There is no Bradley. All right, so I’m going to go
ahead and skip to the results. And it looks like pretty much
everybody wanted it with the exception of just a few people. So I’m going
to go ahead and share my screen again. And this time we are going to get into the
specifics of what your accounts should be. And I’m going to talk about
this in kind of two sections. First, I’m going to talk about what
the balance sheet accounts should be, and that is actually pretty easy.
It’s not really that complicated. And to do this, I’m basically just going
to pull up a chart of accounts list. I’m sorry, I’m going to pull
up a balance sheet report. So I’m going to go to Reports, and I’m going to go to a balance sheet. And here’s a balance sheet. So here’s the account
that you are going to want. Everybody is going to need to have an
account here for each one of your accounts in real life. So if you have
more than one bank account, you’ll have a separate one,
one for each bank account. If you have receivables,
and I know most of you don’t, but some of you do invoice people,
you will need a receivable account. Another one that people
always need is fixed assets. Now I have just two, one for office
equipment, and one for furniture. If you are a really small
nonprofit, and you just started, you don’t need that. You can just have
one called “Furniture and Equipment.” If you are a really big nonprofit,
maybe you have one for furniture, one for equipment, one for building, one
for land, one for leasehold improvements, and one for vehicles. Those
are the six that you usually see if you are big organization, one for
equipment, one for furniture, one for building, one for land, one for leasehold
improvements to the building, and then a final one for the vehicles. Now when it comes to your accounts
at the bottom of the balance sheet, you will need an account for your
payables. So that account you will have, QuickBooks gives it
to you automatically. You will need an account for
each one of your credit cards. So that is something that a lot
of people don’t realize this. But if you set up an account in QuickBooks
for each one of your credit cards, you can download the charges,
so you don’t have to sit there trying to enter the bill line by line. The
charges just get entered every day. It’s very neat. If you are using a
QuickBooks payroll service, it’s QuickBooks Payroll, it comes for
an extra charge with your software, then you want to have a
payroll liabilities account, and you want to have sub-accounts
for each one of the liabilities that you may owe. If however,
you are with ADP, or Paychex, or some other outside of
QuickBooks payroll service, then you really just need one
account called Payroll Liabilities. If you have any loans, you
will need an account for that. And the equity accounts, just
leave them where they are. Don’t worry about them. So that’s
basically your balance sheet accounts, nothing too confusing there. And let’s see, Dean, chocolate storage vaults,
that’s the name of one of your assets? How about a debit? So Tom, a
debit card is just like a check. So you don’t need to have
a separate account for it. It comes directly out of your
bank account, whereas a credit card is really a separate account
that has a balance in it. Now donations, these are just
the balance sheet accounts. What you are talking about Janet with
the donations is the P&L accounts, or the income accounts. Brighton
wants me to explain about equity a bit. Now I could talk for hours about
it. Let me just tell you this. Equity is simply the difference between
the assets which is everything you have, and the liabilities which
is everything you owe. So we have $107,000 here of assets. We owe $66,000, so
what’s left over is 40. So it’s basically the
difference between what we have, and what we owe. So that’s
what the deal is with that. So let’s move on to the
P&L accounts. Let’s see. Kelly wants to know how to use QuickBooks
for memberships, the details of. So that’s obviously a transaction
question. We are going to cover it in the three-day webinar. I can
also help you with tech support. We don’t have time to do it right
now. With doing this is a set up class for new users. But if I have time
at the and we can talk about it. So what should your
accounts be on your P&L? So what I’m going to do – is really
the best way to explain the right way to set up your income and expense
accounts is to show you the wrong way. So I have a messed up file here. And the goal really is, as far as I’m
concerned – and this has to do with, whoa. And this has to do with what
somebody had pointed out earlier. I’m trying to remember, is the,
ah, – somebody was talking about how the annoying thing about their
chart of accounts – yes, Angela we will. The annoying thing about accounts
is that they end up with so many that their P&L is too long. And what that means
is that the board of directors won’t read it. So what I want you to do is I
want you to have very few income and expense accounts, enough
to where the whole P&L will fit just on one page, because then
the board will actually read it. It’s more digestible that way. So in order to do that, we
are going to save the income and expense accounts for
only the most important things that we need the board to see, and
to make me the accountant happy. The rest of the stuff
that you need to track, we are going to track them in
other places. So having said that, the best way to show you
the right way is to show you a chart of accounts
that was set up wrong. So I’m going to make this All Dates. So how many of you get grants?
How many of you get grants? Go ahead and check if you
get grants, let me know. Who gets grants? Who gets grants? Yes, a lot of you do. A lot of you do. So do you see how this person
has set up an income account called Restricted Grants? Don’t do that. The most important thing that you have got to find
out about a restricted grant is how the money was spent, so
that you can report to the funder where the money went to. Having an
income account for that does not help. It also makes the data
entry more complicated, because if I get a grant that’s
restricted from a foundation, I don’t know whether to put
it down here under Foundation, or put it up here under Restricted
Grants. So don’t do that. The Green Truth Grant,
the United Fund Grant, this is the person who set up a separate
account for each one of their grants, so that’s crazy. We are going
to use a different list for that. It’s actually the customer list, and
we talk about that in the full training, so I don’t want you to do that
in your chart of accounts list. When it comes to your income,
that is unearned revenue, and by that I mean the revenue
that is just kind of given to you either from foundations,
corporations, individuals, whatever. You want to have just
these four accounts. Now there’s always exceptions, but
in general, individual contributions, corporate grants, foundation
grants, the government grants, that’s how I need to report it on a 990. That’s how I report it on an
audited financial statement, and that’s something
that the board can digest. So notice how we don’t get very much
money from the government, $35,000. Whereas we get a lot of
money from foundations. That’s something that can maybe spur
a conversation at the board level. Hey, why are we not getting
money from the government? Maybe it’s an opportunity
that we are missing, or maybe it’s because we
are an arts organization, and the government doesn’t
give arts any money these days? So just depends, but at least
it’s something that is digestible and easy to understand. We are
going to track our restricted grants in a different place. We are not
using the chart of accounts for it. The other thing, membership
dues. Some of you have income other than just donations and grants. You provide services, or
product in exchange for money, maybe you have tuitions,
maybe you have memberships, maybe you sell T-shirts,
maybe you have ticket sales, maybe you have registration fees. And typically, we will take
membership as an example. Typically, you have different levels
of members like a lifetime member versus an affiliate member
versus as a general member, and you want to track how much
you got of each type of member. Do not use the chart
of accounts for that. Don’t get granular when it
comes to your earned income. There’s another list in QuickBooks
called the product service list, that’s where you used to track those
details. So I just have one lump account called Membership Dues. So
that’s the income accounts. So let me stop for a second and
just take a couple of questions here. And unfortunately, I’m going to start
at the bottom and work my way up. Are individual contributions donations? Yes, donations and contributions
are the same thing Laureen. Are all corporate donations
considered corporate grants? I think so, yes. A donation
and a grant are the same thing, it’s just more where it comes from. Heather if you didn’t with subaccount
would just the main ones show up on the report? Yes, that’s true, but I
still don’t want you to use subaccounts, because it makes the chart of accounts
too long. And there’s additional pieces of information that you can use
if you use the product services, like it tells you the number of members
that you have. Subaccounts don’t do that. Scrolling up a little bit. Bob
can you comment on the differences between Windows, Mac, Android
versus QBO applications? I’ve not had a problem with any of
those, Bob. The Online Edition works no matter what. Paula wants to
know about setting up loan accounts. I can show you how to do it at the end if
I have time, or I can do it in tech support. Yes, we are going to learn about
classes Angela, in a second. When you upload an
account and add a category does it change all of
the same transactions? No, it doesn’t not Douglas. You
have to re-point those transactions. Sandra, the question
about nonprofit reports, we always have carryover
balances at the end of the year. Some of those funds are from
grants. How can we create an income and expense report
that reflects the funds? Something I teach in restricted
grants, don’t have time to do it here. I can show you with the tech support.
It’s also an our training products. The elephant in the room is that April
10 is the cut off for QBO Plus resources? TechSoup is working on getting
QBO Advanced on the product list. But two questions – okay, so.
Bob, I’m not aware of this. So you know more than I do.
Perhaps the people at TechSoup can talk about the different options
in terms of QuickBooks’ offering. I did not know that they are no longer
offering on TechSoup the QuickBooks Plus. That’s surprising to me. We
will cover that at the end. William, if you want to track funds, we are
going to use something called classes for that. We will do that in a minute. And let’s
move on. We’ve got 15 minutes left. I’m just trying to get
the questions answered. Now when it comes to the expense accounts,
that’s where people screw up the most. Let me move this down. Let me
move this down a little bit. And there we go. Now the
reason why people screw up the most when it comes
to expense accounts is because they –when you enter
expenses in the land of nonprofits, there’s really two things that
you need to track about them. So I’m going to pull up a
little Word document here, and let’s just go over this. So when it comes to expenses –
let me just type this, “Expenses.” We will make it nice and big for
you to see with small screens. There are two kind of things
that you need to track about them. One of them is what I call the
“natural category of the expense,” the natural category, natural
category of the expense. And by that I just mean the natural
way you think about expenses. Somebody chat me up and tell
me some natural categories. Tell me some natural categories of
expenses, just off the top of your head. Give me some. Yes, first one salarie,s
exactly. Utilities, rent, exactly. So these are the natural way
of thinking about the expenses. Utilities – utilities.
Okay, there we go. Great. So Douglas said, “event.”
So I want to talk about that. Dean, I’m not even going
to say that on the air. All right, Douglas said, event. Now
event that is not a natural category. Some people call this the
“object of the expense.” What is it for? If I put
event, I don’t know what it is. What do you mean event? What is
it ? Is it postage, is it printing? What is it for the event? So
that’s the natural category. You’re not supposed to
put things like events. Another one, program service, that is
another one you are not supposed to do. Fundraising expense, that’s another
thing you’re not supposed to do. Travel is good. Because
what is fundraising Kathy? If I was on the board and I saw an
expense account called fundraising, I don’t know whether it’s travel.
Did you take a trip to Barbados? Is it supplies? Is it food?
See, that’s the natural category. Things like program service,
or event, or fundraising, that’s the second category. And the second
category is the function of the expense, the function of the expense.
This is the “why” of the expense. And there are three main
functions, and funders want to know that most of your money is being spent
in the bucket one, the first function, and not the other two. So what are
the three functions of an expense? There’s three different
groupings of them. Yes, one is called programs. And this is the one that they want you
to make sure you spend all your money on programs. Another one is called
admin. Some people call admin, management and general. And
then the last one is fundraising, that’s right, fundraising. So
this, and more specifically, if it’s a program, which program it
is. Well, it’s my education program, and then maybe you have another
program for housing, like that. So if it’s a program, which program? And so,
it’s very important that we track this stuff. Do not track it in the
chart of accounts list. Let me bring my little report back over. Do not track it in the
chart of accounts list. You see how this organization – I
will make it bigger so you can see it. The Guidance Center, the Synergy
Conference, The Aware Campaign, these are programs. If I
had a Synergy Conference, yeah, I want to know how much I spent.
But if I just put expenses to it, I don’t know what they
were. And for some reason, people end up doing this, probably
because they don’t know about QuickBooks, about using QuickBooks
if you are a nonprofit. And then it’s like if I spend money on
the Synergy Conference that’s postage, I don’t know whether to put it
in the Synergy Conference here, or should I put it in postage down here? And I have to know both pieces of
information. If I’m doing your taxes or something or an audit, I need to
know all of your postage added together, and then I need to know the total
of the Synergy Conference program. So what we are going to do is you
want to use the chart of accounts list for the natural categories, bank
charges, dues and subscriptions, just the natural categories. And
there’s another list you are going to use for program, admin, and fundraising.
And I think you already know that. What is that list? And probably
some of you already know. What list are we going to use to track
our programs, admin, and fundraising? Katrina got it right
first. It’s the class list. Now the class list is a feature
that you need to turn on. I’m going to click on the gear, and I’m
going to go over to Account and Settings. And I’m going to go over
to the Advanced area. And under Categories you’ll see
something that says, Track classes. And you want to check that one,
and you also want to put this; Assign…>”One to
each row in transaction.” This will allow you to split a
transaction between multiple programs, or multiple classes. Then you’ve
got to set your classes up. Now where do you suppose that
you would get to your class list? Where do you suppose you
would get to your class list? Somebody chat me up and tell me.
Where? Yeah, it’s in the gear. And it’s under All Lists. The
class list isn’t listed here. You have got to click All Lists,
and then you click Classes, and this is where you
set up your classes. To set up a class you go to New,
and then you just fill it out. Now the class list, I put
numbers ahead of the names so that they would appear in the
order that I want that to appear. Now you bought yourself a little work,
because when you enter a transaction, I’m going to look at a check
here, when you enter a transaction you can put the account that
it is pointed to here, postage. And over on the right side in the Class,
this is where you can put the program that it related to, and we
will put Synergy Conference. And we are going to
run over a few minutes, because I want to at
least mention budgets. Postage and Delivery
and this will be admin. And you can do that in every
transaction window in QuickBooks. Even on income, you
can point it to classes. And the benefit of that – let me get to
this report and then we will finish up. A P&L by class, look at how
beautiful this report is. This report is giving me not only a
total, but it’s also giving me columns for each program with the revenues
for the program, and the expenses for the program, so that I can look
at each program like a department or a division. And say my
Greenhouse Center is losing $11,000, whereas my Synergy
Conference is making money. And I can also see the
total amount of programs, all my program expenses are
190. I’m spending 55 on admin, 20 on fundraising, the total is 266. This report is a report that is required
on your audited financial statement, and this is how the expenses
are reported on the 990. So this I think, is very valuable
to you. And I would use this, I would use this all the time.
So that’s what classes are. Now we only have a few minutes
left, so what I want to do here, and I know that I’m running behind,
and I apologize very much for that. I want to point out budgets real
quickly just to show you where they are, and how to enter them. You
go to this little gear here, and you click on Budgeting. And after this, I’m going to
answer a bunch of questions. You click Add budget. And here’s
where you enter the budget right here. You just type the numbers in. You can enter the budget
monthly where you enter numbers in each one of these fields, or if you
enter the whole budget for the year, you don’t want to enter it by month,
you just want to enter the whole year, then you put the budget in the
very first month of your year. Now you’ve got to name the budget
first. I will just put “name.” Pick your year that you want to enter a
budget for, and then you just click Next. And then you enter your budget. This little arrow here is for people that
do want to enter their budget monthly, but they’ve got certain accounts
where it’s the same every single month, the expense like rent. So
I can just type “2400” here, and I can click this forward
arrow, and bloop, there it goes. So once you enter your budget, then
you’ll be able to look at it on a report. And it’s weird. To get
reports compared to budget, normally you would think
you would go to Reports. But when it comes to
budgeting, you don’t do that. You go to the gear. You go to where
you budget, and all of your budgets that you have entered are, here.
You can edit them clicking here, but you can also Run. So I’m going to run a budget
to actual report right here. You can do a budget by program. You
can also do a budget for a customer. So in order to do that when you add the
budget, you see Subdivide>Customer, and if it was program, you would
click Class. We will click that one. And then you pick the classes that
you want to enter a budget for. Typically, people would do it for
every single one of their classes. And then when you click Next – We’ve got a put a name in
here first. You click Next. Here’s where you enter those numbers. Now let me finish up here. Couple
of things I want to point out. If you go to my site, and
then we’ll do some questions. If you go to the
QuickBooks Made Easy site, this is where you can sign up
for our webinar that is coming up. You can just click on Live Seminars. And the webinar that you are going to
want is a three-day webinar series here, and it’s just for online users.
And you can click on it there. There is a $50 discount for you. It’s
normally $199. It will only be $140 for you. You’ve got to get the code which
I will show you in a second. Tech support is over here. And when you
click on Tech Support for nonprofits, it’s usually, it depends upon the options,
but for a year – let’s see where this is. They just changed the website here. For a year it’s usually
$499 and online, $499. You are going to be able to get it
for $199. We are giving you $300 off. So let me show you where those codes
are so that you can get the discount. Here are the codes right here. So you’ll want to make sure
that you copy these down. They will send them out again. This sale
– these discounts are very, very good. So this sale is only going to work
for 48 hours. So it’s going to end. Now it says Thursday, it means Saturday.
It’s going to end Saturday night. That’s wrong. It’s going
to end Saturday at midnight. So the code is TSW50OFF for $50
off the three-day webinar series, or $300 off tech
support and it’s TSTS300. You can always get the QuickBooks
Made Easy Essentials product. It’s a training that’s stream-able.
It comes with a handbook. It’s six hours of learning, and it’s
always discounted. It’s normally $229. You can get it from TechSoup at
the $109. So this is all ways there. These top two are only
there for the next 48 hours. We are right at the top of the hour.
So how do you want to handle this Sima, because I’m over, but I want
to answer these questions? So how do you want to do this? Sima: Yeah, since it’s 12:
31 we should probably wrap up. If you want to maybe take two questions,
then we can wrap up after that. Gregg: Okay, all right. Let me see
what I can do real quickly here. I’m not going to be able to
show you stuff on the screen, but I will be able – So, Lisa,
do I need classes for revenue? So basically, you use your
classes for all your transactions, and it’s the same classes that you
would use for your expenses typically. I’m seeing here that you would
suggest doing one for restricted, temporary restricted, and permanently
restricted. You can do that, but I prefer to use the same
class. If you have an income that is related to a program,
you put it to that program. If it’s unrelated, put it
to the fundraising class that way you can see
how you did on a program. How do I switch my online
monthly fee to TechSoup annual? We talked about that in the beginning.
You have to backup your data file Linda, onto and use Chrono books.
Go to chronobooks.com. It will back up your online
data file. Then go into TechSoup, purchase it from
TechSoup, the new account, and then upload it again to the new
account. And then cancel your old account. Can you enter budget for
customers? I already said that. Let’s see, can you budget with
class headers across the top? Yes, Jen you can, but I
don’t have time to show you. I’ll show you at tech support. Where would you carry over
amount from the prior fiscal year? Somebody else asked me that. Again, I
will need to do that in the tech support. What is the difference
between a project and a class? A project is, it relates
to your customer list. It usually is for grants.
Classes are for your programs. Let’s see, how do costs like a mortgage
or insurance appear in the class list? Insurance, you usually break
up between program, admin, and fundraising if it’s
insurance on the building. Same thing with interest on a mortgage.
Well, the interest on the mortgage goes to admin. The principal goes to
the loan that’s on the balance sheet. Insurance gets split based
on the square footage, Brian. You can do a P&L in job by QBO.
It’s called a P&L by customer and you’ll find it in your
list of standard reports. Do your classes and customers
transfer? Yes, they do, Lisa. And with that I think I will be done,
because this question looks too long. All right, so Sima, did you want to
address what they were talking about, or do you not know what’s
going on with the offering? Sima: Yes, I sent them a message,
and I offered Bailey’s email address. We will get in touch
with him afterwards. Gregg: Okay, all right,
okay. That was a lot. Sima: All right, thank you Gregg. So before you guys hang up,
I just want to encourage you to take our post event survey. So
any feedback that you have for us is always super helpful. And
if you are on social media, feel free to give us a follow
on Facebook, Instagram, Twitter. We also have our blog
at blog.techsoup.org. We have a couple more
webinars with Gregg happening at the end of the month.
So we have one on March 19 and then also on March 21.
We have several other webinars which you can check on our website
techsoup.org/coummunity-events to see what’s coming up. We
also have TechSoup courses and then TechSoup services. So if you
are interested in any of our courses which are similar to webinars,
but they go in much greater detail, we have topics around Google
Analytics, Facebook Advertising. And you can see the full list on
our TechSoup courses catalog page. And then we also offer TechSoup
services which is Helpdesk, Managed IT, Cloud Implementation, and
then also Office 365 Support. So just so you guys know that.
And then we have a coupon code. If you want to sign up for a TechSoup course
you can get 10% off of your first course. All right so I think that is it.
We are overtime. Thank you, Gregg. Thank you, Bill. Thank you,
Zerreen. Thank you to the attendees for staying on this long, and we
hope to see you at our next webinar. Gregg : All right, bye guys.

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