How To Set Up or Customize QuickBooks Online for Nonprofits

How To Set Up or Customize QuickBooks Online for Nonprofits

If want to run a nonprofit organization by configuring it with QuickBooks Online then you need to make few changes to the QuickBooks Online reports, and forms. This will make sure that your QuickBooks Online account is fully configured with the nonprofit organization, and ready to manage its finance. In this article, we will show how to customize QuickBooks Online for nonprofits.       

Is it possible to customize QuickBooks Online for nonprofits?

Yes, it is possible to use or customize QuickBooks Online for nonprofits. It is a recommended software for nonprofit accounting. you need to track the expenses of various nonprofit accounting funds and programs. The main feature of QuickBooks is that it understands the type of a function and processes it according to the types it belongs to. This way we can easily separate these bills and expenses. The software was designed according to non-accountants needs and requirements. We can also be able to customize for nonprofits accounts.

To Customize Nonprofits Organization in QuickBooks Online

Customize or set up the nonprofits organization by following the below-given procedures:

How to Create an account for a NGOs

To create an account for non-profit organizations we need to follow two steps they are

  • Change your company type to non-profit.
  • And customers to donors.

How to change your company type to non-profit

Non-profit organizations are generally tax-exempt and use different tax forms (1990). In this section, we can see how to change your company type to non-profit.

  • Choose “Setting” option.
  • And select the ‘Account and Setting’ option from the Setting’ tab.
  • Select “Advanced”, and the “Edit” option.
  • Choose ‘Tax’ and select ‘Non-profit’.
  • Click ‘Save’.
  • Sign out and again sign in to your account to view the changes happening in the QuickBooks.
  • After changing your tax form, “Invoice” should display as “Pledge”
  • You should see general reports for nonprofit such as Statement of Activity and financial status.
  • Some shortcuts might not be changed.   

How To Change Customers to Donors

In a nonprofit organization, the customers and donors are the same. So you need to change the customers to donors to ensure that you see donors instead of customers on reports in QuickBooks. Follow the procedure to change customer to the donor.

  • Choose Settings
  • And click on the ‘Account and Settings’ option.
  • Select ‘Advanced’ tab.  
  • Choose “Edit”(with different preference)
  • In the drop down menu, select the customer label and then choose Donors.
  • Save it.   

How to customize QuickBooks Online for NGOs.

QuickBooks Online may be suitable for non-commercial accounts because it is easy to do. Customization has been done easily because it only involves processes like changing a few terms and conditions in the menu. Generally, nonprofits have been using the cloud accounting versions of QuickBooks.

  • Choose a Non-profit  from the company type.
  • Select a Non-profit from the company type again.
  • This will rename the menu items to be a better match for Bookkeeping and accounting functions for NGOs.
  • Renamed menu items will be changes like  “Customers” replaced by “donor” ,”invoice” replaced by “Pledge” and “Profit and Loss” replaced by “Statement of activity”.
  •  It is possible to change or edit the renamed menu item later on.
  • There are many ways available to customize the QuickBooks Online for non-profit organizations.
  •  For tracking and compiling the data, the general step is to categorize donors, clients and members of the non-profit organizations through type, location or services provided to the organizations or customers.
  •  Under the “other name list” menu item we are able to track volunteers separately.
  • In the case of in-kind donations, especially items or concessions, special interest must be paid.
  • Donated items need to be recorded at fair value either by sales or inventory under the “time of receipts”.
  • In order to determine the reasonable or actual cost of the service purchased by the non-profit organization at this time, the donated service must also be recorded as income.
  • Journal entries are the best for recording donated goods and services.
  • Turn on Audit trail it will track all the transactions entered and changes made and by whom the changes have occurred. It also provides protection for your organization data.
  • Categorizing each transaction in a proper manner including donations, grants, expenses and activity for customers.
  • It will help to create an overall database for the non-profit organizations.
  • Also help to generate for the organization or donors and tax purposes.
  • In the end each report itself can be “Customized” according to selected goals.

Wrapping Up

We hope this article will direct you on the right path to set up QuickBooks Online for nonprofits. Try to do it ownself, and follow all the steps carefully, without skipping a single step. And still, if you seek any help to customize the QuickBooks Online for nonprofits then you can take support from our Intuit Certified QuickBooks ProAdvisors through our toll-free number +1-818-295-3510.     

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