How To Customize QuickBooks Online for Nonprofits

As we all know that QuickBooks is also a non-profit accounting software solution. It helps the users to track their budgets, expenses, and finances for the tax purpose. But it needs proper customization to run it for the right purpose.

Most of people know about this QuickBooks plan, but don’t know, how to customize QuickBooks Online for nonprofits. So this article is especially for them, those, who want to run it properly by customizing it.  

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 QuickBooks Online for NonProfits

Here we have given some procedures to customize the QuickBooks Online for Non-profits. Have a look;

How to Create an Account for a NGO:

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

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

How to Change your Company type to non-profit:

Non-profit organizations are generally tax-exempt and use different tax forms (990). In this section, we can see how to change your company type to non-profit.

  • Choose the “Setting” option.
  • And then select the ‘Account and Setting’ options.
  • Click on the “Advanced” tab.
  • Select the “Edit” option.
  • Choose tax and select non-profit.
  • Click the ‘Save’ option to save all the changes.
  • 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:

Here is the procedure to change the customers to donors;

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

How to Set Up QuickBooks Online for NGO:

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.
  • And from the company type, select a non-profit.
  • 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, and 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.

To conclude it:

We hope the above article provides you the overall information about how to customize your accounts in QuickBooks Online for Nonprofits. We will suggest you customize the non-profit’s plan of the QuickBooks Online properly so that it will helpful for you to use in the right direction. Still, if you are seeking help to get the detail about this then you can get the help of our QuickBooks experts for reliable support.


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