 Welcome everyone to Getting Started with QuickBooks 2014. My name is Becky Wiegand, and I am your host for today's webinar here in TechSoup's Headquarters office in San Francisco. And joining us will be Mr. Greg Bosson, the CPA and CEO of QuickBooks Made Easy. Just to give a little bit of background about myself, I am the webinar program manager here at TechSoup. I've been with the organization for 6 years. And prior to that, I spent about 10 years working for small nonprofits in Washington D.C. and Oakland, California where I frequently had to solve day-to-day tech problems, decide on technology solutions that might work for us, and in general figure out how to make things work. You'll also see Ali Bazdiki and in the chat window helping you with any questions today. When you ask a question, if you don't get an immediate response, just know that Ali is on the back end flagging those so that we can get back to you or raise those up to the presenter during Q&A. And to give a little bit of more background on our presenter, Greg Bosson, he is the founder and CEO of QuickBooks Made Easy, which is a donor partner in TechSoup's product catalog. And he is an expert on using QuickBooks for nonprofits. So we are lucky to have him with us today to talk about how to get started using this accounting tool in your office. A quick look at the agenda, I will do a short introduction to TechSoup in case you are not already familiar with us. We will do a couple of polls. And today's webinar is a little interesting because we are going to use these polls to really guide the content we cover. We've got 90 minutes today. We want to make sure that we cover some of the basics of getting set up with QuickBooks for everybody so that we are all on the same page. And then after that we are going to use that poll on what is most useful for you to really guide the content that we cover. So we will provide a handful of options when we get to that poll and you are going to tell us what you most want to learn about. Then Greg will give us a live walkthrough of the basics and then some additional topics that we determine. Toward the end we will go ahead and do a little overview of the donations available through TechSoup's catalog from Intuit of QuickBooks and also the QuickBooks Made Easy products. And then we will have more time for Q&A. But feel free to ask questions throughout because we will have opportunities to raise those up to Greg at intervals throughout the webinar. And if we don't get to them through those few moments that we take here and there, we will make sure that we try to provide a good amount of time at the end of the webinar for Q&A. So who is TechSoup? We are 501c3, nonprofit. And we are working towards the day when every nonprofit, library, foundation, public benefit organization on the planet has the access to resources and technology they need to work at their full potential. We have been working on this since 1987 serving more than 200,000 organizations in more than 60 countries around the world. We offer a continuous variety of product donations. And we have expanded that to include things like consulting services, the latest version of Windows 8, and QuickBooks 2014 among many others. You can find all of this and more by visiting TechSoup.org. So now let's go ahead and jump us into these polls. So Greg, if you would like to join us on the line, you can feel free to expand on what these poll options offer. But I want to advise our users to go ahead and click on your screen which situation is most applicable to you, you the individual on this call, not your organization. Is your org new to QuickBooks? And you just need help setting up? Are you new to QuickBooks? But your org is already set up in QuickBooks and has an existing account that maybe somebody else in your organization helps create. Are you familiar with QuickBooks? And you are just looking to upgrade, or maybe you have just recently upgraded to 2014 and you want more info? Are you already familiar with QuickBooks? And you are just looking for an opportunity to learn more? Or is it other? And you can feel free to chat us in the window if the options are other. Greg That's great. That's perfect. This is going to help guide me in terms of the first part of the seminar to really get an idea of how basic I need to go and how much time to spend on, for instance, setting up a new company. So this is very important. So take your time and answer. Becky So we are going to give a few more seconds for people to respond. And again, let us know in chat. So we have some people like Wendy saying that the org is new to QuickBooks and I am new to QuickBooks. So overall new. That's good to know. I am going to go ahead and close this out in just a second. So let me just give a countdown. If you haven't yet clicked on your screen, take a moment to do that. We are going to skip to the results for everybody and close it out in 5, 4, 3, 2, 1. And it looks like we have a kind of even split here with the organization is new to QuickBooks and that the person needs help getting it set up, and people who are already familiar with QuickBooks and want to learn more. So we've got kind of the two worlds here mixed which is okay. And Greg, if anybody is most capable of helping all of you in various ways throughout this event. We have another poll here that I am going to go ahead and open up. And this will help us decide which topics to cover beyond the basic intro to QuickBooks that Greg is going to do either way because we do have a lot of people who are joining us that aren't yet familiar and need that help. So Greg, do you want to describe these in a little bit more detail? Greg, let me go ahead and do this one. And this one is multiple choice. So you can select more than one of these options. Okay, oh I didn't know that. That's helpful to know. Okay, so this is going to help guide the last half of the seminar really where we are going to be going into some more advanced topics. And for the people that, and I think there was over 50 of you that are familiar with QuickBooks and just looking to learn, this is where I'm going to be looking to figure it out. So if you want to use QuickBooks as your individual donor database, that's what that first one is for. Not everybody does. You want to get year-end donor letters out of it or something. That's the one you'd pick. Second one is entering your budgets. That's obvious. Entering in kind contributions. That's contributions of anything other than money. How to enter those. How to enter payroll transactions, which is very similar to transactions. Okay, we spelled that wrong but that's okay. Now as far as payroll transactions, we don't have time to teach if you are using the QuickBooks payroll service. So listen very carefully to me. I will not be showing you how to use the QuickBooks payroll service. This is how to enter your payroll if you're with an outside payroll company. Then lots of you have PayPal accounts. I always get questions about how to handle PayPal and QuickBooks. Then if you have a credit card now, these are the credit cards that you use to buy stuff with. If you're interested in finding out about that, how to track volunteer hours. QuickBooks has an online edition that I'm going to mention. If you are thinking of switching to that or maybe you already are on it, can't get that for TechSoup not yet. But if you want to look at the online edition, we can certainly do that. Reconciling your bank accounts and then we just put in kind of a generic other if somebody has something else. And we know that these don't cover all of the different things you can do with QuickBooks all the time necessarily. But we want to make sure that you have the opportunity to really weigh in because in the 90 minute section you could have a 90 minute webinar that covers just one of these I'm sure. Each of these could have their own 90 minute webinar because QuickBooks is involved. And there's a lot you can do with it. It's a pretty robust platform for your accounting. So keep in mind that we'll probably have time to go through two or three, maybe four of these topics in addition to the getting started and the basics that Greg is going to go over. And beyond that, we'll point you to additional resources throughout and then later on where you can learn more and have more in-depth training on these specific areas if you need that. So I'm going to go ahead and close this. It's definitely going to do entering budgets. There's no doubt about that. Yeah, that's number one on the list. So I'm going to go ahead and give it a few more seconds here so everybody has a chance to weigh in. If you feel like you need a lot more time, let me know because I can give you another couple seconds here to weigh in. Can I answer a couple of questions real quick? So Raymond, the nonprofit edition is not available with the online edition. The online edition is just a generic edition for all people in the country. It's not separated out by version. That's the one that was pretty quick. We know that people can't see the chat questions. Only us on the back end can, but we'll make sure to flag those. And if there are comments that are useful for everybody, we'll chat those back out to you. Okay, is there a webinar on the payroll service? It's a great question. You know, Becky, we should do one, but not right now. And I think it's a good idea for us to do one. George Weir wants to cover how to invoice in QuickBooks. It's not something we're probably going to cover today unless I have time. That's a few of them. So I think we're ready to move if you are. Yep, let me go ahead and close this one out, and just to confirm which topics we'll be highlighting as priorities. We'll be looking at entering your budgets, and then looking at reconciling your bank accounts monthly, and tracking individual donations. And so I'm keeping track of these, and I'll keep track of the ones after that as well so that we can make sure that if we have time for them, we'll try and get through as much as we can. Hopefully we can get to in-kind. Hopefully we can do all four of those. Yeah, that would be great. So I'm going to go ahead and hand it over to you, Greg, to give us a little bit more background about you and the work you do, and then get us started. All right, great. So hello to everybody. And I can see your chat right now. So if anybody has seen me teach before or heard me teach before, please say hello to me. Sally wants to know if we're going to set up the chart of accounts. That's going to be in the basic section. So of course we're going to do that. But again, as Becky was saying, I'm a CPA in Atlanta, Georgia. I do not work for the company that makes QuickBooks. I'm a CPA specializing in nonprofit organizations. I have a firm here in Atlanta. And then I also am the owner of QuickBooks Made Easy, and we are all about helping nonprofits use QuickBooks to make the best use out of the software. So I kind of specialize in nonprofits. We accomplish this goal in really three ways. We have DVD training products. One is called QuickBooks Made Easy, The Essentials for Nonprofits, and the other one is Beyond the Essentials for Nonprofits. And what you're going to be learning today is actually from these training. The two trainings are probably 14 hours of learning, so obviously we only have 90 minutes. But the Essentials you can purchase through TechSoup, and then Beyond the Essentials I'm going to give you a little coupon code at the end of the seminar so that you can get it online. I'll show you where you can find it online, Beyond the Essentials. The second way we kind of help you guys out is with TechSupport. And I don't know if anybody has TechSupport with me already, but if you don't, I'm very helpful. So I have people all over the country signed up for TechSupport and I have a discount coupon code for that where you can call me for a year for $99. I can even dial into the software. And then the third way that we teach help nonprofits is by doing live seminars across the country. We typically partner with state nonprofit associations. I just got back from Hawaii and San Francisco. It was amazing. But here's some of the upcoming seminars. We take a little time off in the summertime. So I'm going to pick up again in September. We're going to Bend, Oregon, and Portland, Oregon, and then Reno, Detroit, and Chicago in October. And those aren't all of them. Here's some others that are going to be happening that we don't have the dates for yet. We're going to New Jersey. That may happen over the summer. And then Boston, I know we're going to Seattle, Raleigh, and then Utah. Now finally, on my own website, which I should tell you is QuickBooksMadeEasy.com. There's a place where you can tell us where you are and if you'd like us to come. And that's why we're going to Detroit this year because a lot of people are with us there. So QuickBooksMadeEasy.com is where you can go to let us know. All right, so I think I'm done with that. And oh, I should tell you that I may be coughing throughout this. Hopefully it won't be too annoying to you. Anyway, we won't talk about it, but I have a little bit of an allergy problem. Maybe we will talk about it. So first thing that I do want to say, because it looks like there's a lot of people here that have never used QuickBooks before. There was over 50 people. It is a financial software package, which means it's an accounting package. You can get financial statements from it, but it will also track your invoices and keep track of your receivables. It tracks expenses and payables. You can print your checks from it. You can do payroll from it. It costs extra money for that, but it does work as a payroll service. We use it. It's great. You can also process credit card payments. In other words, you can have people pay you through the use of the credit card merchant service that is with QuickBooks. It also costs money as any merchant service does. And it can also work as a donor database. And we're going to show you how to do that. And we're definitely going to cover that after we go through the basics. All right, so that's kind of what it's for. So this is kind of the order of what we're going to be covering. There's that call. All right, we're going to start by just showing you, since there's so many people to have to set up, I'm going to show you how to set up QuickBooks from scratch. First, we're going to talk about what versions you should get. You may already have your version. I just wanted to kind of give you an overview of all the different choices out there so that you don't get confused. That's all we had some questions about that. Somebody wants to know, Dindra wants to know if the QuickBooks is over 12 years old so there's a lot of inactive accounts. She wants to know should she start over or not. So Dindra it looks like, we're going to have to talk. I'm going to need to find out a little bit more about the data file. I would say in general if you can get your bank account reconciled in the old data file then we can probably salvage it rather than starting from scratch. All right, so what else is there? So we're going to look at the version. We're going to look at creating a brand new company file. And then after we do that we're going to look at getting used to the screens and how to get around. And that's actually a change. I know there's a number of you that are upgrading from an older version. They changed the way that the screens look when they went from version 2012 to 2013. So we're going to look at the changes over here in going from the older version up to 2013 or 2014. But first we're going to show you how to get around and show you how that changed in 2014. Then we're going to get into setup and somebody wanted to know if we're going to look at how to set up the chart of accounts and we most definitely are. We're also going to look at how to set up your programs which is something that nonprofits need to do. We're also going to look at how to set up your vendors. Notice how we're not talking about how to set up your donors or your members or your students. We'll do that in the section later on in the seminar. We're just kind of doing the basics now and you'd only need to do that if you were going to use QuickBooks as a donor member or student database. So that's kind of why I put that there. So I think that's it. Then after we do setup we're going to cover entering deposits and entering and paying bills. So we're going to do money going in, money going out. Then we're going to look at some basic reports and then hopefully we'll be done with all of that in maybe 50 minutes and that will give us the rest of the seminar to spend time on the topics that you want covered. I'm going to stop and ask for questions periodically through this so don't worry about that. So I think with that I'm going to share. And so at this point your screen should change and you should be looking at QuickBooks. Now I understand the last time I did a webinar for TechSoup a little while ago I went really quickly and some people's screens were kind of behind me. So I'm going to be moving the mouse and I'm going to be clicking on things. I'm going to be going a little slow just to make sure that everybody is cool. But if it's happening to you again and I open up a screen and start talking about it and you're like 30 seconds behind me before your screen opens up and shows you what I'm already seeing, please chat. And then Becky if you could please let me know because I want everybody to get a nice, fun, relaxing experience. And also learn a lot. One other comment that if folks need to see a little larger you can click on the button to full screen on your window and that will let you be a little bit more zoomed in on what Greg's doing. And then you can bounce back out to the chat window if you have questions for us just by selecting escape or I think there's even an exit full screen option that shows up for you. So let us know if you have any problems and we'll be – Greg won't be able to see the chat window while he's sharing his screen but I will be. So go ahead and let us know if you need us to slow down and I can always jump in to interrupt. One thing too for those of you that just like to see things larger, I have a little thing here that makes things bigger. So I just pushed it so it makes the little buttons bigger so hopefully you'll be able to see. I'll try and remember to zoom in from time to time. All right, so let's get started. So you know what I just did Becky? I want them to see one more slide. So I'm wondering if you could put the slides back up and I want them to see one more slide. My bad. We're back at the slides. Which one was it that you wanted them to see? It's the one. I think I can change it myself here. It is this one. So the different versions of QuickBooks. So the very first thing I want to explain is that first of all every year QuickBooks comes out with a new version. Right now we're in version 2014 and they make changes to the software. Most people upgrade to a new version every other year but with TechSoup it becomes fairly inexpensive to upgrade and so a lot of people are upgrading every year. There are five different choices. There's QuickBooks Pro. This is kind of the, I guess I would call it the bottom of the line version. There's not a nonprofit edition of it. It's just QuickBooks Pro and that's the one that you usually see small businesses have that they can't afford to get an expensive program. I think it retails for like $2.50. I think you can get it for like $1.40 or something at Costco or Sam's. And if you have that program that's fine but the premier is kind of the next one up. That's the premier nonprofit edition. Premier comes in different industry skews. There's a premier contractors edition, a premier accountants edition, a professional services edition. Obviously you would want the nonprofit edition and that's the one you can get at TechSoup which you'll cover at the end of the seminar. And I assume you may have already had it. Maybe you don't have it yet. Then there's Enterprise Solutions. This is for large nonprofits. This software is fairly expensive. It usually averages around $2,500 and it's for large nonprofits. It's just like Pro and Premier. It's just bigger, more robust. It has more room. You can fit more donors in the donor list or vendors in the vendor list. You can have over 100,000 vendors in the Enterprise Solutions. You can only have 14,500 in Pro or Premier. Most people use the desktop version of QuickBooks and they use this premier nonprofit edition. If you have a Macintosh, which I mean I have an iPhone. I like Mac. I'm not anti-Mac but there is only one choice for you and that is QuickBooks for the Mac. And you can get that at TechSoup as well. There's not a nonprofit edition choice of that. It's just QuickBooks for the Mac. And then there is the online edition. And you're going to hear more and more about this edition. Those people that have the online edition are renting QuickBooks. They're basically renting it online. And I would very much like it if anybody who has the online edition right now would say that they do in the chat so that I can get a good idea of who I'm talking to because that edition looks fairly different than the others. And there's not one for nonprofit. There's just a plain online edition. You have different choices of it. You will need to get the plus edition. It's the most expensive edition of online. You will need to get that. If you are a nonprofit it's the only way you're going to be able to track your programs. You got me? So you got to get the plus if you're going to the online thing. All right, who has questions? Anybody have a question before we move on about the different editions? Well, we do have a bunch of questions in the queue, but I think because we're already a bit into it, why don't we go ahead and get started with the basic section? And we've got all these questions flagged that we can raise up at various points throughout. Sure, that's great. It doesn't look like we have too many using the online edition though. And a church, somebody who has a church wants to know what's best for a church and the premier nonprofit edition or QuickBooks Pro, either one of those is fine for a church. All right, enough of that. All right, so now I'm going to start over again and share my screen, and I'll give it a second. And what we're looking at is the 2014 nonprofit edition of QuickBooks. And I wonder if I can move this out of the way. All right, so we're looking at the nonprofit edition 2014 of QuickBooks. That's the edition that I'm going to be using. Now there are 50 or so of you who have not, maybe you haven't even gotten QuickBooks yet. So most people purchase it through TechSoup or through Intuit. You can go buy it at a store, but these days most people purchase it online either through TechSoup or Intuit. They download it so you don't actually have a separate DVD. You download the software onto your computer. And then once you've downloaded it, there are sample files that you can play in. I'm in a sample file right now. And I would encourage you to open up the sample file and play with it just to kind of get used to how the screens look. Then when you're ready, and you're ready to set up your books in QuickBooks, you have to set up a data file for it. And in order to do that, you've got to go over here to File, and you're going to click New Company. And that is going to take you to a window where you can set up a new company in QuickBooks. And I do want to explain to you something real quick. QuickBooks is a program just like Microsoft Word is a program. Well, I'm sure you are well aware that if you have Microsoft Word, you can have more than one document. It's the same thing with QuickBooks. You can have more than one company. So if you have more than one company, I've got a ton of them. I'm going to click Open, and you're going to look and see how many companies I have by the way. They're in my computer's hard drive. Here they all are. There's a ton of them that I'm going to be using today as we teach. But people don't realize that the program is different from your data file. And the reason why they don't understand that is because in Microsoft Word as an example, when you click on Word, it opens up Word, but it doesn't open up a document. You've got to pick your document after Word opens up. Well, in QuickBooks Land, when you open up QuickBooks, it opens up the program, and then it opens up the last data file that you were ever in, because most people only have one data file, and that's why. So it's important that you understand that. So if your computer crashes, you need to make sure to reload QuickBooks, and then you'll also need to restore the backup. So I'm in my sample file now, but I'm going to go over to File. I'm going to click New Company, and this is going to open up a window called QuickBooks Setup right there. And there are different ways to set up a new data file in QuickBooks. There's an advanced setup, but we like to keep things easy here. QuickBooks made easy, not needed to do that. You don't need to do that. We can just push the Express Start. I will go down here to let you know that if you have a Quicken file or other accounting software data, they will allow you to convert from Quicken or from other software into QuickBooks. But most of you will probably just be starting from scratch, so I'm just going to go through this Express Start here. So I'll push the button. It's going to give us some questions, and I'm just going to create a new company, my new organization. Pretty clever industry. Here it's going to want to know what industry you're in. You are going to be tempted to start typing, membership, association, whatever you are, and then when you go to the next field it's going to say, that's an invalid industry. You see, you can't really type in here. You have to pick one of their industries. So just do yourself a favor and click Help Me Choose. It's going to open up a window, and it's going to give you a list of all the industries that QuickBooks thinks are out there in the world. There are two of them that will apply to you. The person who has a church is going to pick church and everybody else if you're not a church, I assume you're a nonprofit, otherwise why are you listening to me? You're going to pick nonprofit. So when you pick nonprofit or you pick church, the reason why you're picking your industry, the reason why they want to know is because what QuickBooks does is it gives you a set of income and expense accounts based on your industry. A nonprofit P&L looks very different than one for a construction company. So they're going to try and give you a little bit of help in setting up your accounts. Now we're going to go through what your account should look like. And I actually don't agree with the suggested setup from Intuit. It's generic. So we're going to go over what your account should be in a little bit, but just know that right now, at least they give you some accounts. So I'm going to click OK. Then they want to know what your company type is. You will also be very tempted to pick nonprofit. Do not do that. The only relevance of this field is that if you have purchased from Intuit a software product to do your 990 at the end of the year, if you pick nonprofit, there is a field that appears next to every single account where you can assign what field in QuickBooks relates to what field in your tax software is 990. So unless you're doing a 990, this is irrelevant. And as a matter of fact, if you pick it, then you're going to see this annoying field in every one of your accounts in your chart of accounts list saying, what's the tax line assignment? And you'll be like, I don't know what that is. So ignore it. So just pick other or none. Then they want your tax ID number. They use it on tax forms, especially if you're going to use QuickBooks to do your payroll. And then do you have employees? I mean, they're asking you this because they want you to purchase their employee payroll service, which is a great service, but answer however you feel. I'm just going to pick No here. And then they want the address, which I'll just type in an address here. The people that have been using QuickBooks for a long time just bear with me, okay? We're going to get to some very intense stuff, particularly in a little bit. But I'm very interesting to listen to anyway, right? So I should tell you jokes while I'm doing this. And you're modest too, Greg. Oh yeah, that's right. I'm modest. I forgot about that. See, I can't even keep up with all of my qualities. All right, so I didn't say good qualities. I just said qualities. All right, so Create Company File, are you ready? So I'm going to click Create Company File. So it's creating my new company file. And it's an actual file in my hard drive. And we'll look and see where it is in the hard drive in a second for those of you that are kind of computer literate and kind of want to know. That was a pause for me to drink water. I wonder if that's rude to do. All right, so now the data file is set up. You see how it says my new organization up here? This top bar is called the title bar. And it's telling us two things. One, it's telling us what version of QuickBooks we have, QuickBooks Premier Nonprofit, and then it's also telling us what data file are in my new organization. Now the rest of these windows, here's one here called QuickBooks Setup. This is where you can add your vendor list and your customer list. This is where you can add products and services you sell, which you probably won't need to do that. And this is where you can add your bank accounts. Now we don't have to use this screen and I'm not going to use this screen. I am going to click Start Working to just show you that we are actually done and now we're ready to set up the rest of our stuff and we can do it in the regular part of the program. We don't really have to do it in this beginning section. There's also a little QuickStart Center here, which is trying to give people that are new to the program some things that they might need to do. Most of these aren't even relevant for nonprofits. There is a little video over here which is kind of cool. See how to get around in QuickBooks. We're going to cover it live. But I'm going to get rid of this too. Great. So this is going to be your exact experience when you're setting up your organization for the first time, and that's exactly how quickly it is set up. So here it is. Now when I go to File and I click Open Company again I'm going to see a bunch of different data files including the new one, my new organization, which is right there. So I'm going to go ahead and, you know what? I think I'm done with that. Instead of using that one I'm going to go ahead and change it and open up another one. I'm going to open up one that already has transactions in it and already has list items in it. And then we're going to start talking a little bit more about how to set up the rest of the things in QuickBooks. So I'm going to stop for a second. Oh, I do want to tell you one thing. Listen very carefully, guys, everybody. If you want to know where your data file is on your computer, in other words what folder it's in, what drive it's in, what you can do is push Control and the 1 button. And when you push Control and the 1 button, a product information window is going to open up. It's going to give you a lot of information about the data file. But down here in the middle, Location, it's telling me exactly where it is on my computer. It's on my desktop in a file called 2014 May TechSoup Webinar. Within that there's a file called Class. And within that there's my data file, 2014 Nonprofit, and it has a QBW. All QuickBooks data files have QBW. So now you know exactly where it is. All right, does anybody have any questions before we move on? The next thing we're going to do is we're going to set up, well we're going to look at how to get around in these screens because I know there's a number of you that are new. We'll cover some things that changed with that in the newer versions. And then we're going to go into setting up accounts. But does anybody have a question before we move on? Gregg, we had a couple of questions just about your comment around 990s. So one person asked, I didn't understand what he meant about the tax code. My non-profit has to file a 990 every year. Doesn't every non-profit have to do a 990? Oh, I'm sorry. Every non-profit has to file a 990 every year. The point is, are you the one who's going to be doing it? And if so, are you going to be using a product that you purchased from QuickBooks, from Intuit? Because if you aren't, then that tax line assignment, that entity type becomes irrelevant. It's only relevant if you are going to use the export feature to export your data file into Intuit's LISERT program or one of the other tax software programs. And most of you are not doing your own 990, hopefully. Great. Thank you for that. We do have a lot of other questions, but many of them are about which version would be best to select. So I want us to get through a little bit more of the tour, and then we can talk a bit more about the versions and the benefits of different ones later. Well, I will tell you that the best version is the Premier Non-profit Edition. It's the cheapest in that you can get it from TechSoup. It also has a few features that are specific for nonprofits, but not much, but is by far the best choice. So that's my answer, period. If there's somebody who – the online edition is getting there, but it's quite a bit more expensive. So you have to pay a monthly fee. So we're still working on that. Okay, and there's a quick follow-up to the 990 question from Juanita. She's asking, does QuickBooks handle all 990 types? Okay, QuickBooks doesn't do 990s. If you want Intuit to do your 990, you have to buy another piece of software from LISERT, is a company owned by Intuit, and you can buy the LISERT software. It costs to do the 990. It costs a couple thousand dollars to get the software. And yes, they do 990s. They do 990Ts. Yes, they do. But again, that's outside of the purview of QuickBooks. QuickBooks will not do your tax return for you, period. All right. I realized why people got confused about that. All right, so let's move on. So those of you that are new, and there's about 50 of you that are new, the first thing you're looking at is this screen, and you're looking at it, and you're going, what the heck am I looking at, right? So because I want you to feel comfortable with the QuickBooks screens, okay? So this is basically your home page area. This is basically the first screen that you're going to see. And it changed. Those of you that are upgrading, it used to look like this. This is what it looked like in version 2012 and later. And now it looks like that. So it went from this to that, which is why those of you that are upgrading might be freaked out. So let me go ahead and calm your nerves while at the same time teaching everybody who's new what the heck I'm looking at, okay? I'm going to do it with the older version. So everything that you see on this screen, guys, everything, is simply a way of getting around to where you need to go in QuickBooks. Well, except for this top bar. This top bar is called the title bar. We already mentioned it. But there are three other things on this screen. There's this big, fat page in the middle here called the home page with all these flowcharts on it. There's this fat bar here, which is called the icon bar. And then there's this thin bar up here which is called the menu bar. Those are the three main ways of getting around to QuickBooks. So I open up QuickBooks. I'm sitting there looking at the screen like, okay, now what am I supposed to do? Well, we're going to show you how to set up in a second, but just I wanted you to get used to navigating around. Say I want to write a check. Well, I could use the home page by clicking on this little right checks button here. Click it. It's going to open up the right checks icon. You fill out a check. We'll talk a little bit more about this later. Check number 1964. Don't forget. The second bar is this fat bar here. This fat bar also has shortcuts to major tasks that you want to perform just like the home page does. I like the home page. Those of you that are new, use the home page because it's like a flowchart. It keeps you doing stuff in the right order. But the icon bar gives you shortcuts to the major tasks you might want to perform. If I click on check, it opens up a check. 1964, just kind of highlighting these are different ways to get to the same place in the program. The third way of getting around is this thin bar up here. It's called the menu bar. It's called the menu bar because when you click on a word, you get a drop-down menu. Menu bar gives you absolutely everything that QuickBooks does. So if I want to write a check, it's by area here. So the people that have been using QuickBooks for a while, they start using the menu bar. But I go to write checks. Oh my gosh, Golly. It's the same darn check number. Check number 1964. So those are three ways of getting around in the program. Now, the only thing I didn't mention was this stuff over here to the side. And I'll just be honest with you, most of this is an advertisement. This is another place you could go to set up a new company. Instead of going over here to click File, New, you could click that one. But these are some balances down here in some of your accounts. But most of the rest of this, particularly stuff down the bottom, is just advertisements. QuickBooks has a great payroll service. They also accept credit cards. I use it. It's awesome. But I'm just trying to tell you, we also use the backup service to QuickBooks. But these are paid add-on services, and they're over here. So that's kind of an advertisement. So if you're kind of new to QuickBooks, I like telling people, we'll just hide this. So then when you look at this, you won't feel scared. So that's everything that's on the screen. You got it? Now, in version 2013 and later, they changed the way it looked. I'll go back to 2014 is what we're in now. And now it looks like this. So at first glance, you'll be scared because it looks different. But it really isn't different at all. The one main change, they did. See, here's the home page. This thin bar, call the menu bar, there it is. There's the title bar. The only thing that's not there anymore is the icon bar. The icon bar is still here. It's over here on this left-hand side. It's like a column now. These are all the little icons right up here. See, there they all are right here. Here's check. Click on check. Opens up a check. Not a big deal. Now if you don't like the fact that the icon bar is on the left-hand side because it's taking up a lot of space, you can either click this arrow and get rid of it, or if you really don't like change, you can go up here to View and change it to Top Icon Bar, and then it's going to be back on the top of the screen. So now this looks just like it did in the older versions. It used to look like this. Now it looks like this. The icons are bigger, and one thing that people didn't like is the icon bar here. Even when it's at the top, it's black and white, whereas in the old version, it was nice these colors, and people liked the colors better. So people complained about it so much that they added a preference. This is wild. I'm going to go to Edit. Everybody can do this if you have version 2013 or later. Go to Edit, Preferences, that's the little features you can turn on or off in the program. We're going to click it, and then we're going to go over to Desktop View, Switch to Colored Icons, Light Background, In Top Icon Bar. You click it. Ah, now this looks colored. So that's basically how to get around in the program. So I think I'm going to move on just to make sure that we don't run out of time here, and I'm going to look at how to set things up. So I know one person in particular, but I know a lot of you want to know what your chart of account should look like. So let me just tell you this. The whole purpose of accounting is to create two reports. And I'm going to pull up these two reports real quick for you. I thought I was. I'm having a problem with my mouse. It is stuck, which is kind of strange. Maybe that was just, there we go. Okay, so there are two reports, and if you know what they are, let me chat me up. What are the two reports that accounting is all about? One of them is the profit and loss. Some people call the profit and loss the income statement. And the other report is called the balance sheet. So I'm going to pull up that other report now. Balance sheet. Okay, great. It's like a participant, Beth, got that right ahead of everybody else. Way to go back. And Erin also did. Awesome. Okay, I knew people would know that. All right, so the date, June 32, 2020. So we'll act like it's June 32, 2020. You can change the dates of these reports. And I have all of my information in a future year. So I'm going to tile these. You can see them both together. And balance sheets over here. So all accounting is, is entering transactions so they get on these two reports. And these, the lines that are on the reports are your chart of accounts list. So let me just show you here. If I go to the chart of accounts list, here's my little chart of accounts list. I need to slow up to make sure everybody sees all this. Let me know if I'm going too fast. And the screen. Greg, can you show really quickly what you clicked on to see your chart of accounts list just to make sure everybody sees how to get to that? Yeah. So there's a lot of different ways to get to the chart of accounts list. But what I'm going to do is just to go up to lists and click chart of accounts. And then there it appears. But as I told you, the chart of accounts list basically is the building blocks of these two reports. So if you look at checking, savings, grants receivable, and prepaid insurance, that came straight from the chart, checking, savings, grants, and prepaid. So these accounts are basically broken up into different types. But every type that is of equity and above appears on the balance sheet. And then everything below equity appears on the P&L. So if you look at, we have an account for individual contributions, corporate foundation grants. And then if you look over here in the P&L, sure enough, there it is, individual contributions, corporate foundation grants. So since these two reports are basically all that you need to report, now there will be other ancillary reports. But all accounting is creating these two reports. You're going to need a P&L compared to budget to give to the board once a month. And you're going to need a balance sheet also. Both of these reports are necessary to do a 990 and to an audit. So what should your accounts be? So let me just talk about that for a second and then we'll take a couple of questions. When you first set up your company, it's going to give you income and expense accounts. It is not going to give you asset and liability accounts. You'll need to create those yourself manually. So in order to create an account, it's pretty easy. You go to the bottom left-hand button of the chart of accounts list, and you click it, and you click New. And then you pick the type. And it's very important that you understand what type, what the appropriate type is for your account that you're creating because the type that you pick determines whether it appears on the P&L or on the balance sheet. If I pick expense or income, that's going to appear on the P&L. If I pick bank, like a bank account at Bank of America, that's going to appear on the balance sheet. So you've got to know what the right type is. So I'm going to create one for computer equipment. That's a fixed asset type. These types are second nature to the person who's doing your 990, so you need to call up your accountant whoever it is that does your year in stuff and ask them what the right type is. If you don't have a person like that, I can certainly help you with the tech support. So I'm going to click Continue. And then you name your account, computer. I'm showing you how to create an account, and then we'll talk for a minute about what your account should be, computer equipment. And then that's really all you need to fill out, guys. A lot of people have a type of personality where when they see these white fields, they feel like they have to put something in it. Otherwise, they're going to freak out. You don't have to put anything in it. Just name the account right there. And then you click Save and Close, and there's the account. So let's talk about what your accounts should be if you are a nonprofit. Well, when it comes to the balance sheet, we're going to need an account for each one of our bank accounts. If you are invoicing people, and I saw there was a few of you that were maybe a membership association or somebody who's invoicing for sponsorships, you made it a receivable account. You made it a prepaid account, furniture and equipment. Everyone's probably going to need that. If you're a small organization, you might just have one account called furniture and equipment. In this particular entity, we've broken it up by furniture and office equipment. Let's see, the other main ones you'll need. Everybody who's listening to me is going to need an accounts payable account. The good news is your data file already has that account. You won't have to, even if you're creating the company from scratch, it will do it for you automatically. You'll need an account for payroll liabilities. You will not need these detailed accounts that I have here unless you're using QuickBooks to do your payroll. Then I'm going to want you to have these subaccounts underneath it. If you have any loans, you'll need an account for any loans you have. And that's really it. In the world of nonprofits, you might think that you need to have a separate account for when you report on an audit, nonprofits report based on whether the equity section is unrestricted net assets, temporarily restricted net assets, or permanently restricted. QuickBooks doesn't track that, so you don't really need to do anything in this equity section. Don't worry about it. Alright, so that's your balance sheet accounts. Nothing real confusing there. I do want to show you how to set up income and expense accounts and what those should be. That's the part where people really screw things up. So what I want to do is I want to show you, oh that's unfortunate. Alright, I thought I had that up. Okay, I want to show you the right way to set up your chart of accounts list. Your income and expense accounts I mean. So I'm going to pull up a little P&L to show you again, second to open back up. But the main point that I'm going to be making is people that are new to QuickBooks, you know that you have to track a lot of stuff. And so people that are new to QuickBooks end up trying to use the chart of accounts list to track absolutely everything. And if you do that you're going to end up with a chart of accounts list that's really big. And if you have one that's really big, then your P&L compared to budget for the board is going to be 15 pages long. And then the board is not going to look at it. And they're going to, maybe you don't want them to look at it, but they're going to have a hard time later on if there's a problem with money because they're going to turn around and blame you. So you want to give the board a P&L, and this is what I teach in my training. That's one page, not more than a page and a half long. And in order to do that, we want to have as few income and expense accounts on the P&L as possible. And if there's another place to track something, we're going to track it there. So when it comes to your incomes, I want to have one account for individual contributions, one for corporate, one for foundation, and one for government grants. I do not want you to have a separate income account for each individual donor or grantor. That is ridiculous, and there's another place to track that, so don't do it here. Just main categories. This is how I have to have it for the audit and the 990. And this is a great way for your board to see where their income is coming from. Now these grants and contributions, they're called unearned income because they were given to you. But then there's earned income. If you're a membership association, you might have membership dues. If you're a school, you might have tuition, you might have program fees. If you give workshops or trainings or what have you, so you're going to need to have income accounts for that. Broad categories don't want to have too many income accounts. Then we're going to have expenses. Now the thing about expenses is you want the expenses to be the natural category of expenses. And when I say natural category, I mean what any layperson would think of as an expense, how much goes to salaries, payroll tax, health insurance, rent, postage. What these are are just the natural types of expenses, the way of thinking of expenses. This is what if you went out in the street and asked somebody what expense accounts are, this is probably what they come up with. That's what most businesses need. They just need to track it that way. And that's what I want your chart of accounts list to have, okay? You don't have to have it real detailed. I've broken out professional fees into accounting and consulting. You don't have to do that if you don't want to, okay? And if you're brand new to QuickBooks, when you go to your chart of accounts list, you'll already have these accounts here, a lot of them, but then you'll need to tweak them. You'll need to get rid of the ones that you don't like, add the ones that you do. You can click on one and click Delete, and it makes it go away. If you're new, you're not going to use it. Remember, those of you that are just starting, QuickBooks is going to give you a chart of accounts. If you don't like it, you can delete what you need and click New to add the ones you like. You can also edit accounts in here, all right? So when it comes to expenses, again, I want you to use the natural category. And that's one way that nonprofits need to track their expenses by natural category. The other way they need to track them is by program. Every nonprofit, unless you're a church, but pretty much every nonprofit needs to know whether or not their expenses are going for program, admin, or fundraising costs. And QuickBooks has a way of tracking that by using a separate list in QuickBooks. So I do not want you to make the mistake of using the chart of accounts list to track your programs. I want you instead to use a new list called the Class List, which is right here. Now if you have – the nonprofit decision already has this list turned on. If you have the online edition, you have to have the Plus version in order to get it. But I'm going to go over here to Edit, and I'm going to go to Preferences, and I'm going to go to Accounting, and I'm going to go over here, and I'm going to say Use Class Tracking. That turns on the classes. We go to Lists, Chart of Accounts, I'm sorry, List Class List, and then you want to create your classes. You want to have one class for each one of your programs, and then everybody who's listening to me will have one for admin and one for fundraising. Then the benefit of that is when you enter transactions. I'm going to go over here to Write Checks, and we'll get the transactions in a second. Not only can you point it to an account, postage, but you can also point it to a class, Guidance Center. And yes, in case you're wondering, you certainly can point one transaction. You can split it between different classes. You will do this when you're entering checks, bills. You'll also do it when you're entering your income. But if you do all of that, as a result, you will be able to look at a P&L by class. So I'm going to click this button real quick, and then we are going to see a column for each program with another one for admin and another one for fundraising. Now I know some of you are like, wow, that is cool. And it is really cool, isn't it? This is how I have to have it reported on the 990, and it's on the audit that way too. So all expenses related to a program are there. All income related to the program is there. So one of the neat things is you can see whether or not a program is making or losing money. This program is losing $14,000. This program is making $5,900. You can also see how much you're spending on admin and fundraising. So the only other thing that I'm going to talk about, and this just takes a second, is setting up your vendors. So to set up your vendors, you go to Vendors, and you go to Vendors Center. Here's a bunch of vendors. To add a new vendor, you click New Vendor right there, and you can type and fill in information about the vendor with the name and the address. If you have a bunch of them, and you want to import them in for maybe an Excel spreadsheet or another software, you can click Add Multiple Vendors. And when you do that, it opens up something that looks like a spreadsheet. It has the vendors that are here, but you can go down to the bottom of the list, and you can actually cut right out of Excel and paste right in to this list right here. So actually, you know what? I'm going to do a couple of transactions, and then we're going to take some questions. Notice how I didn't talk about how to add customers or donors, because you may not need to do that unless you want to use QuickBooks as a donor database. To enter your transactions, when it comes to expenses, well, we'll do the income first. When it comes to income, when it's time to go to the bank, the easy thing to do is to click this record deposit button and you enter your income right here. I got some individual contributions. This is coming from the chart of a council list, and they were for the guidance center, and they were $10,000. There were five checks. They made up 10,000. Then I also got some membership dues, and they were five or 10 checks totaling $325. And that's the bank account that it's going into, and this is the income account, and make sure this matches the dollar amount of the deposit, and then you click Save and Close. That's how you enter it. Notice how I didn't enter a separate line in here for each donor or member. That's because this is how you will handle it if you are not going to use QuickBooks as a donor database. If you want to use QuickBooks as a donor database, then I'm going to tell you to use a separate screen anyway. But for those of you just quick getting started, that's the easiest way to enter income. When it comes to expenses, we kind of already looked at this, but this is where you could enter checks that you're writing. Here's where you put the account, and here's where you put the class. QuickBooks does have this neat little feature where it will track your payables. Some people use the feature. You click Enter Bills. I like this feature a lot. Just like writing a check, but you're entering the bill. This is the reference number. This would be the number on the bill, and that will print on the check that's coming out of QuickBooks. It's $100. We point it to whatever the expense account is, office supplies, and we'll say it's for overhead. So there's a bill. Now you can look at a report that lists out all of your outstanding bills, unpaid bills detail. That's the report right there. And it gives you a list of all your outstanding bills. There's the bill that I just had right here for $100. And this is the last thing I'll tell you, then I'll take some questions. So we saw real quickly how to enter income. Now we're talking about how to enter expense. When you enter your bills, when it comes time to pay the bills that you've entered, do not click the right checks button. A lot of people do that because they're like, well, we're writing a check, so let me go ahead and just create a check now. No, no, no. You want to click Pay Bills. That's why I like new users to use this little home screen here. Click Pay Bills, and then you pick off the bills that you want to pay. And this is going to lower the bills, and then it's going to create a check for you. So I'll just pay a couple of these out of this checking account down here. Look at the dollar amount here, ending balance 42806. I checked this third one. Now it's at 39. I'm going to click Pay Selected Bills, and then it lowers the bill. It creates the checks. And then here's where you go to either print the checks, or if you want to hand write them, then you don't have to push print checks. I'm going to click Print Checks. So you make sure this is the right check in the printer. You check off what you want to print. You click OK. You've got to order these checks. You can order them from QuickBooks or somewhere else. There are three styles here. Most people use the voucher because it's an 8.5x11 sheet of paper. The top third is the check. The middle third you give to the vendor with the check. It lists out the bills that are being paid. And the bottom third is perforated. You tear it off, staple it to your copy of the bill, and put it in a vendor file. So that's the other thing. You want to have a file for each one of your vendors. And you want to put the bills with the vouchers in that file so you can easily look up later if a vendor calls you with a question. You also want to have a copy of all of the things that you deposit. And you want to staple all of the checks that you're depositing to the little receipt that you get from the bank. And I like to keep one folder with deposits, and I stick them in there. I think that's everything. So I realize we've got about 25 minutes left, and I want to get to, let's take some questions here, and then we'll head into whatever advanced topics that we have time for. Thank you, Greg. Wow, that was a big tour. That was terrific. That was great. And if people missed anything, you'll get the recording later so you can watch it again, and watch it slower, pause where you need to. We had quite a few people asking if they have it set up already. Like if somebody else in their organization set it up and they don't use the classes, or they have named something differently, can they change those things? Can they start using classes moving forward? How does that work? You can turn on the class feature and start using it going forward. What I would say is if you have just finished looking at this, and you're like, wow, I really want to get this P&L by class because it's so cool, you're going to probably need to pick a date and say, you know what, starting next fiscal year, I'm going to really start using classes. And then you turn on the class feature, and then you start classifying transactions at the first of the next fiscal year. You can start it early too just to kind of get used to it. And then these expense accounts that you no longer need, you can go to them, and you can inactivate them by clicking Make Account inactive. And then the transactions that have been previously pointed to them won't go away, but you just won't be able to use the account in the future. Now the only downside of making the switch, guys, is that I'm sure you've thought about this. You're going to have a hard time doing comparative financial statements when you change the way the chart of accounts list looks, but is that a good reason to not change? No. You just simply stick it out for that year. Don't have good comparisons, and then after the year is over with, you're off and running. Next question. So we had a couple of people from foundations asking, how do they do the balance sheet if they don't have income coming in from foundations or grants or corporate donations? How do they use that? Well, income doesn't go on the balance sheet. Income goes on the P&L. So I assume you're getting money in the door somewhere if you're a private foundation, and that would be your income. So I'm a little confused about the question I guess. Okay. I think it's just, would they just delete the foundation income line and the government or the corporate? They would just remove those and put in the ones that make sense for them? Yes. This is generic. So if you don't have any money coming in from foundations and you would get rid of that, definitely. So if they have an endowment, for example, and they are allowed to spend a certain amount each year, would they put that as a line item? An endowment, so the amount that they spend, you're going to want to set up the endowment as a class so that when you spend money out of the endowment on things, you can point it to that class. So it becomes another column on the P&L. That's going to be the answer that I give. Great. Thank you. You can tell that I'm not an accountant because I mixed up the balance sheet and the profit and loss sheet. So we had some people asking, in order to give the board a one-page P&L, is it possible to create a report that is year-to-date for a year-over-year comparison? So comparing 2013 and 2014, or is it going to have to be one year? No, you can pick whatever date range you want. And then over here in the Customize button, let me do a date range here just so that I have something and then we're going to need to move on because I definitely want to get to the budgets at least. Then you'll have pretty much all the basics that you need. And I'll just make this total only. Usually the board doesn't get this P&L by class. They usually just get a P&L compared to budget. But if I go over to Customize and do Previous Year, and then I can do changes like the change, then I'm going to get what it looked like this year, last year, and the change. And I can make whatever date range I want. So say only three quarters have gone by, or one quarter has gone by I should say. There. Then it's just to lie through September for this year and last year. So you have the ability to change that. So jumping back to something you mentioned really early on, Claudette asks, if she set it up when she set up her company and selected nonprofit, which you recommended people not do it that way, is there a way to change that now? Yes. If you selected nonprofit as your industry, then all you've got to do is go to the My Company under Company and click on this little tiny thing right here. It looks like a pencil. And then legal information. Let's see. It's in here somewhere. There we go. Under Report Information, Income Tax Form Used, change it from $9.90 to $other or none. Great. Thank you. So I want to move us forward. I know we have a lot of questions, but I want to make sure we have time to cover some of the entering your budget. Let me show you the budget. The budget is only going to take a second. That's not a big deal. So basically you go up to Company and you click Planning and Budgeting, and you click Set Up Budgets. And then you put your budget in here. Now what you're seeing here, this list here is exactly the list that's in your chart of accounts. This is your chart of accounts list for your income and your expense accounts. The first time you go into the screen actually, it's going to look like this. It's going to ask you what year do you want to create a budget for. And it's based on your fiscal year. And you tell QuickBooks what your fiscal year is when you first set up your company. This company's fiscal year is July through June, which is why it's giving me this 14-15 option here. You can do a budget for a profit loss or a balance sheet. You pick Profit Loss. You click Next. Don't worry about these. This is if you want to budget by grant or budget by program. Most people just do an organization-wide budget. This is covered in my Beyond the Essentials training. So I'm going to click No Additional Criteria, and then here's your income and expense accounts. And then they're assuming that you want to put the budget in each and every month. And if you budget by month, that's awesome. So then $2,000 here and $3,000 here. You know, you just type it out. Now if you don't, most people budget by year. And if you do that rather than by month, you want to put the whole budget in the first month. $40,000 there, $30,000 there, $80,000 there, $100,000 there. And then we'll just put in some more numbers here. Salaries are $100. Payroll taxes are $10. Health insurance these days, $50. Rent, $40, whatever. When you're ready, I'll click Save. Click OK. And then you can look at a report here of your budget. It's under Reports, Budgets, Budget vs. Actual, or Budget Overview. If I pick Budget Overview, pick your budget. It's going to give it to you by month, but we didn't budget by month. Not in this example. Total only. Here's your budget. And you can give that to the board and they can review it. And then later on, Reports, Budget, Budget vs. Actual. And this report here, I think I already have a budget in for this one. Again, it's going to give it to you by month. The Actual for July, the budget in the July column, and then the variances. Well, we put the whole year's budget in the first month, so this is really the annual budget. That's four columns for July. Then there's another four columns for June, August, and then another four columns for September. Ridiculous number of columns. The board's never going to look at that. So just make it total only. Then you've got Actual, Budget, Variance. What else is there? What was the other thing that I needed to cover that everybody wanted? Sure. Well, reconciling your bank accounts? Okay, I can do that. And then we also are tracking individual donations at the end of your donor. Does anybody have a question about the budget that they wanted to ask? It's pretty basic. All right, we'll go on then. The reconciliation thing is pretty cool too. Let me go ahead and open up another data file for this. My computer is frozen again. You know, Greg, while your computer is catching up, Veronica did have a question saying, how can I set up an operating budget? Is that different from what you just showed? No. I call it your organization-wide budget, and that would be your operating budget. I would assume that by operating she means everything, not just your overhead, but all of your expenses. Thank you. Okay. Anybody else got a question? Not specific to budget, so we can go ahead and move forward. We have lots of other questions though. Oh, actually, Mary Jo just chimed in asking, can you enter budgets by class? Yes, you can. And I covered in the Beyond the Essentials, but if you go to company planning and budgeting, and you click Set Up Budgets, and pick your year, if you pick this, then you can set up a budget by class. And it looks just like all the other budgets if you put your class here. Excuse me. All right, so you should enter your transactions at the end of the month. You need to reconcile your account. Now when I say reconcile your account, I do not mean going into the register for the account, which is what some people do, and checking things off manually here, never do that. I also don't mean downloading your transactions. It used to be called downloading, now it's called Bank Feeds. It's a way of downloading your transactions. We actually did a webinar on it last year. I don't mean that either. I mean going over to, well, I actually write in the home page here, reconcile. You click this, you pick the bank account you want to reconcile, and what you're supposed to do is you're supposed to put the beginning balance of your bank statement is right here. It should match the balance in your bank statement from the last time you reconciled. Then you're supposed to put the ending balance on the bank statement here. You're supposed to click Continue. You get a list of all the transactions that haven't cleared since the last time you did a bank rec. It's going to give you every transaction that hadn't cleared. You look down at your bank statement, you see the first transaction that cleared. You see if you can find it on this screen. Here it is. You check it off here. You check it off with a pen on your bank statement. Then you go to the next line on the bank statement. You see if that cleared. Of course it cleared. It's on the bank statement. Then you look up here. You see if you can find it here. You check it off here. And you do that for all the deposits. You do it for all of the checks and the debits and the drafts until you're done. And everything is checked off and you think you're done. You go down here to where this says Difference. If this difference is not zero, you ain't done. You are not to complete the bank rec. And completing the bank rec means pushing reconciled now. You are never to push this button until this thing says Zero. So you want to make sure. And there's really three possibilities. If this isn't zero, either something cleared that you forgot to check, more often than not, something clear that you didn't check because it wasn't entered. And then you can go in right over the bank rec. You don't have to leave the bank rec. You can enter the transaction that you need to enter. And then after you've entered it, you go back here and you check it off. So that's usually why the bank rec doesn't work. We had a couple of people asking, if you do online banking, do you still go in and create that check so that it enters the transaction in here? I think what they're saying is if they're downloading transactions, then you still need to reconcile your bank account in this way. People think if they've downloaded transactions that they've reconciled, that's not true. If you've downloaded transactions, then you probably will have everything here. It's just that you'll need to still check it off in order to finish the bank rec. I think that's what… I think we had a couple of people who said that they actually pay bills online too. And so if they're not needing to physically print a check to mail a check and they're paying it through an online bank or bill-paying, do they create something like that to reconcile? Yeah. Well what happens is when you go to pay bills, if you are paying a bill online or with a debit card, you simply check it off. And instead of clicking to be printed right here, which is what I did earlier, you click a sign check number. This is what people use if they're going to hand write their checks. But you can also use it to show QuickBooks that you've paid via online or a draft or something. So I'm going to click Pay Selected Bills, and then this window opens up. And basically it's expecting that you have the checkbook next to the computer, and you're putting the check numbers here. But if you paid it online, just type in the number field online. So then it will still come out of the bank account in QuickBooks. You can still use it when you're doing your reconciliation. But now QuickBooks knows that this bill has been paid and it was paid online. All right? Sure. So it's $3.20 now. So I know that we probably need to finish. Right? Because we're supposed to finish at $3.30 unless you want to go over. I don't know if you wanted to do that or not, Becky, because I know it wasn't. We try to be respectful of people's time and not plan. So maybe what we could do is we could move on to the next topic. And if you're willing to stay on a little bit longer, anybody who wants to, maybe we can take another 10 or 15 minutes beyond to answer questions that we don't get to. But that's really, for people who want to stay on longer, they can do that. But we don't want to do the primary presentation after the stop time. Okay. Okay. Well, why don't we do that last topic that everybody wanted, which is people that want to use QuickBooks as an individual donor base. Let's do that. And then we'll finish up. This will take, now I could spend about a half hour teaching this one topic. I was a little concerned that people would pick it. But it's covered in detail in the Essentials Training product that you can get from TechSoup. But I am going to show you real quickly when my computer catches up how to enter your donations if you want to use QuickBooks as a donor database. What I don't want you to do is I don't want you to go to the Make Deposit window that I showed you as kind of the quick and dirty of how to enter transactions. I'm sorry, enter deposits. I don't want you to go to that window there. Instead, what I want you to do is, let me make this bigger here, is I want you to use this button here that says Donations. So instead of clicking the Record Deposit window and waiting till it's time to go to the bank, what you're supposed to do if you want to use QuickBooks as a donor database is you're supposed to use this field right here. So this is weird because it brings up a sales receipt. Even though when you looked at the button here it said Donation, it's really just a sales receipt in QuickBooks. And to prove it when I click it, there comes sales receipt. But what you do is the same information that you would normally put in the Make Deposit window. You put the name of the donor right there. This comes out of your customer list which you'll need to add your donors if you're going to do this in your customer list and it works the same way as it does for vendors. Then this is where you're going to put the income account. And then you can put information about the transaction. We'll say this was a check. It was $133. Check number 1333. We'll say the check was $1,000. And we'll say that the check went for the Guidance Center. It was a restricted contribution for the Guidance Center. So what's weird about this is that you're filling out this weird receipt. But what's cool about it is you can give this. You can either print it or email it to the donor and you've satisfied your IRS requirement. And in the training product beyond the essentials I show you how you can customize this form and turn it into a thank you letter. So it prints out like a thank you letter. But anyway, this is the form that you will use in order to record individual donations. Now the other thing that I need to tell you is that over here there's a deposit tube. And you're going to want to pick undeposited funds. And if you have a newer version of QuickBooks you're not even going to see this button here. Instead it's just going to automatically go to undeposited funds and I'll explain to you what that is in a second. Let me make this a little bit smaller. Okay, undeposited funds is an account in QuickBooks. It's an asset account. And what it is, it's the representation of the money sitting in your drawer waiting to be deposited. Because typically what happens is you go to the mailbox, you get the check, and then what QuickBooks is assuming that you're going to do is you're going to enter the fact that you received this money in this window right here, but you're not going to go off to the bank yet. Instead you're probably going to stick it in the drawer, wait until you have a bunch of checks, then go off to the bank. So that's why they have this weird account called undeposited funds. Again, yours may default to that, but I changed the name of it to that money in my drawer. So when I click save and close, watch what happens. Instead of the bank account going up, that money in the drawer is going up. So you see if you're going to use QuickBooks as a donor database, you're actually going to get more accurate financial statements because if you don't then you basically don't even tell QuickBooks about the money you got in until after you go to the bank. You just click to make deposit window. We did that a little bit ago, but if you're going to use QuickBooks as a database, then you're supposed to enter this information right before, I'm sorry, right after you get the check. Let's get one more in. So I'm going to go back to donations and I'll enter the second check. And we'll say this was an individual contribution as well. This one was $500. This one isn't earmarked for a particular program. Every transaction has to be pointed to a class, but if it's an unrestricted contribution, don't put it to a program. Put it to the fundraising class. And the reason why is if you do that, then when you look at a P&L by class, only the transactions that are related to a program will be in that program's column so that you can see whether a program is paying for itself. And all the unrestricted stuff will be over either in admin or fundraising. I pick fundraising is what I usually do. So anyway, I'm going to enter this second one if you didn't catch it the first time. Let me open up the chart of accounts list again. That money in the drawer is $1,000. I'm going to click save and close. That money in the drawer is now $1,500. And the bank account hasn't changed because I haven't gone to the bank. Then at the end of the week, when it's time to go to the bank, you click record deposits at the end of the week right before you go to the bank. You'll get a window that pops up, gives you the list of the checks that you are about to deposit. I'll check both of them. And then I'm going to click OK. It moves it to the make deposit window. And then you'll either print a deposit ticket right here, or you will hand write the deposit ticket either way. But if you do, I want you to print the deposit summary. It's an 8 1⁄2 by 11 sheet of paper that lists all the checks you are about to deposit in the bank. And when you go to the bank, you'll get a receipt from the bank. You staple it to your little deposit summary here. And then behind it, you'll have a copy of all of the checks that you are about to deposit, or that you deposited. You staple it all together. You have a nice little packet for each deposit. You put it in a folder called deposits. I think I mentioned that earlier. That's best practices. So that if I audit you, I can look at any deposit on a bank statement and see what made it up. So let me just show you how this works as far as the accounting goes. Right now the money in the drawer is $1,500, and the checking account is $83,000. So I'm going to click Save and Close. Now that money in the drawer is $0,000, and the checking account is at $85,000. So if you do the little sales receipt thing, and I just showed you how it works, then you'll be able to get all of these sales reports that will be very useful to you in using QuickBooks as a database. Here's a Sales by Customer Summary. It gives me a list of all of my customers. I can sort them. I'll sort it by the total from the lowest donor to the highest donor. I'll push this A to Z arrow, and it goes in the other direction. I can change it to by year if I want to. So I can see patterns of donations from individual donors over here. I can also, that was one report, another report, let me access that. Another report that really will be helpful is getting a year in donor acknowledgement, and you're going to do that by doing a Sales by Customer Detail report, and you pick whatever your date range is that you want it to be. It needs to be the calendar year, even if you're fiscal years other than the calendar year. These letters, these notes have to go out for the calendar year. Hopefully you know that. And whoops, this will be great. So then you're going to get a list of each donor and the individual transactions that they pay, the usual donations in the total. Now I can pretty this up by sliding to get rid of columns that I don't want. I can change the title of it. I can do all sorts of stuff because I'm going to give this to my donor, your annual donations. Now the one thing is, you wouldn't want this to print. You wouldn't want everybody to see what everybody else was giving, but that's fine because when you go to print you can put page break after each major grouping, and I'll click on that. And then I'll preview it, and then you're going to get one page for each one of your donors. And you can put this in the back of a letter. It would be great if QuickBooks put it directly in a letter, but it doesn't do that now, even the nonprofit edition, but you can staple this to the back of a letter that says, thank you very much for your donations. Detached is the list. So I think that's it, and I see that we're at $3.30. I mean I could go on forever, but in the end it's just great. We know you could, and it's great information, but I'm going to go ahead and stop sharing your screen just so we can do a quick wrap up for people who do need to hop off the line, and just let you know about these product donation programs that are available to you, and then we'll take some more time after for people who can stick around to answer a few more questions. So quickly, through TechSoup's donation programs you can access the one user license or three user license of QuickBooks Premier Editions, and it is the 2014 version as well as QuickBooks for Mac. These are available at these donated prices directly through Intuit through TechSoup's program, and then you can also access QuickBooks Made Easy, which there is a donated product for the essentials which covers quite a bit more than what Greg was able to cover in this session, but it covers a lot of the same stuff, but more in-depth for either donated for $39 admin fee, or the discounted version if you don't qualify for the donation for the $99 admin fee. We will also include links to point you to additional resources including some of the other webinars that Greg has done with us before. So if people want more info on downloading transactions, we have a webinar on that topic. And if you want an overview of QuickBooks 2014, we'll point you to that webinar as well. And also just to point you to additional webinars on different topics. We have another one tomorrow on Office 365 for nonprofits, and you can see these other dates coming up. So if you work with youth and you want to know how to serve them best in your community, there's a webinar on how to give them access to finding free meals, tips on using Excel in your office, and then we'll be talking about mobile strategies in June. So that's some of what's coming up. We do have a lot of questions from people, so I want to kind of wrap up for anybody that does need to hop off the line by thanking you Greg for your presentation, and also thanking Ali on the back end for helping grab questions and thanking ReadyTalk for providing the use of their platform so that we can provide these webinars. If you have to hop off the line, please take a moment to complete the post-event survey that pops up. Give us your feedback because it helps us to continue to improve our webinar program. And then we can go ahead and jump into a few more questions. We will not have time to get through all of them. I'll stay as long as you want me to. I'm going to go ahead and share my screen so I can get back into QuickBooks. I will tell you that this is my website here, and I'm going to give you the codes to get the products. If you click on this, it's time to order QuickBooks Made Easy for nonprofits. It takes you. So you just go to the QuickBooks Made Easy website, and you'll see the Essentials product, and this is what everything is covered there. That you can get at TechSoup for much cheaper than what we sell it here for. Done. So let's do questions. So I'm ready. Give me some questions. I'll give you some answers. Great. So we had a lot of different people asking about different versions and different years. So if they have data that's already in QuickBooks Nonprofit Edition 2011, can they move that over to QuickBooks Premiere 14? What are the complications? There's no complications at all. Listen, you know in two it's going to make it easy for you to upgrade, right? So basically, remember how I told you that I wanted you to push the Control and the 1 button, and it's going to give you the product information window. Really important you do that so you understand where your data file is. Once you know where your data file is, then you load QuickBooks, the new version. You click File. You click Open Company. You browse to where that data file is. And once you open up that data file, it's going to say, hey, that data file is in an older version. Do you want me to update it so that it can be read by this new version? You say yes. It forces you to make a backup first, and then it updates it, and then you just continue on. It's almost like with Microsoft Word where you just kind of opened up an old letter and looked at it in the new Word. It's going to be simple. Next question. Great. So on that same vein, we have people asking if they need to have it installed in their office and also need to have it at home, or they have an accountant that works off-site that they need to give access to. Do they request the one user license or three user license? Okay. Now, the three user license is $99. It's dirt cheap. I would get it anyway, even if you don't feel like you need it. Now, the license, if you get a one user license, you can as an individual have the thing used on your computer, your office, and on a laptop at home. But if you have more than one person that needs to use QuickBooks, you're supposed to have more than one license. Now, you know as well as I do that you could conceivably not do that, but then you would be breaking the law. So the person who is the only person using QuickBooks and they wanted it at their home in their office, one license is fine, but I'm like, come on. It's three user license is only $40 more. So I think everybody should get that. Then you can have up to three users in the data file at once. And the person who needs to remote in, I guess, that would be a second person. So I would definitely say you need a second license if you don't want to break the law there. Next question. So people are asking questions about the nonprofit version and the not nonprofit version. Does QuickBooks Premier come with a nonprofit view? Okay, so as I told you at the beginning, there's five different versions of QuickBooks. Pro, which doesn't come in a nonprofit version. Premier, which comes in six different types. One of them is the nonprofit edition. That's the one that everybody should get. That's the one that you can get at TechSoup. That's the one that's $99, ding, ding, ding, ding, ding. Then there's Enterprise Solutions. That does come in a nonprofit edition. It's for very large nonprofits. It's going to be at least $2,500. Macintosh does not come in a nonprofit edition. If you're in love with Mac, it'll work. Don't worry. Don't need the nonprofit edition. Online edition, same thing. It's just like Mac. There's just one choice. So hopefully that answers that question. I think you answered it very thoroughly. So we had some questions asking, can you track other things in QuickBooks? So a couple of the things mentioned, can you track volunteers, and can you track donor pledges? You can track volunteer hours in QuickBooks very easily. It's actually quite cool. One of the lists in QuickBooks is called the Other Names List. And I actually use this list, not in this data file, but in another data file. I'll open it up. And I track not only the volunteer information like their name and their address and stuff, but I also track their time. You can track their hours in QuickBooks. I'll just open this up real quick. I've got a bunch of volunteers in the Volunteer List. So there's four names lists in QuickBooks, four places where you can put people. One is your customers. That's where you put your donors, your members, or your students if you want to use QuickBooks as a donor database. Looks like that. Click New Customer. Vendors, that's where you put people that you pay money to. Then there's employees. You only use that if you're using the employee, if you're using the payroll service to QuickBooks. But then there's this weird list called the Other Names List. There's actually an interesting story about how it came to be, but we won't talk about it now. But this is where I put my volunteers. I put them here and I can double-click on one and just show you information about them. They have a field called Account Number and I always like to put the job that they have here so that then I can go to Reports, Lists, Other Names List. I can do an Other Names Phone List. I can customize it and include a column for Account Number and then I click OK. It gives me what their job is. So I can easily find a lawyer if I need one who volunteers for me. Maybe they won't charge me money. And then the other thing I can do is I can enter time for them. It's in the Employees menu. It's weird. Everybody can enter time. You didn't think you could. People are like, what? You can do a time sheet in QuickBooks. It's been around for years. And it's under Employees because they're assuming you only do time for employees. But no, you can do a time for Other Names as well. So what I've done here is I've entered a bunch of time so that then I can look at a report, jobs, time and mileage, time by name, and for each person's name it's giving me where they spent their time. I can also break it out, or the number of hours I mean. And then I can also break it out using something called items to see where they spent their time. So yeah, there's a whole topic in it and beyond the essentials. The person who wants to track pledges, and I know there were more than one. So basically what is a pledge? It's a promise that somebody has made to give you money at some point in the future. So you're going to want to use the invoice icon for that but you can absolutely track pledges in QuickBooks. You probably already have a little template here for pledges. Here we are. And then QuickBooks will track your pledges. It's pretty simple. The other thing that people are asking about is in-kind donations. Can you track the value of those gifts in in-kind donations? Well okay, so in-kind donations, should they be entered in QuickBooks? Yes, they definitely should. Is there a button here to use to enter them? No, should there be? Yes, but there isn't. And so we've got to give you a workaround. This is another topic in the Beyond the Essentials product. So I'm going to go over to, and this is going to make you mad, but the only way to enter in-kind contributions is by doing a journal entry. I know you don't like it, but that's really the only way to do it. So I'm going to go to another data file and show you how to do this. And again, this is a gift of either stuff or services, either one. And if you think about it, it shouldn't really change the net income on your profit and loss too much, because it's a contribution, so it should make income go up, but then they used it for, you know, it was used somehow. It was an expense that you otherwise would have had to have paid for, so it makes expenses go up as well. So how do you enter that? You enter it using a journal entry. So we have this nonprofit organization here. It's a counseling center, and they actually counsel the indigent. And so I don't know why I'm going up at the end of every sentence. I need to stop doing that. It's probably annoying. All right, so we're going to go into company, and we're going to go into make general journal entry, and this is where we're going to enter the journal entry. So we'll need an income account called in kind contributions, and then you're going to credit it for whatever the value of the good or the service that you received. The counselors donate their time. They usually charge $100 an hour because they're real therapists, but they're only charging us $20. So they're actually donating $80 worth of time in a month's period. They work 10 hours, we'll say, this individual. So that would be $800, and then you would expense it to whatever the expense would be if you had written the check. And so as you can see, that's made income go up and expense go up. I'm going to go ahead and classify it because every transaction needs to be pointed to a class, and then we'll just look at a little PNL so you can see how it looks. It only has the two transactions on it. But see how it made income go up, and it made expenses go up. So then you have a net of zero. I think it will still be there. Yeah, here's $800 in, and then down there were counselors, there's $800 out. You wouldn't print out a letter to give the donor out of QuickBooks for an in-kind gift. I wouldn't do that because you are not really responsible for telling them the value of what it is that they gave you. They can write off something that they gave you. They can say that they think it's worth $10 million and write it off on their individual tax return. That is their business. You are not responsible for telling them how much that value is. You're only responsible for figuring it out so that you can enter it here. So I know that was a lot. It's in the beyond the essentials training product. What else you got? Great. Well, I want to give us a hard stop in just a couple of minutes because we also have other folks needing to get off the line too. So just QuickBooks have a drill-down mechanism to allow you to refine accounts further if you are using your chart of accounts. If you want to refine your chart of accounts to reflect utilities like electricity versus gas versus water, or would you just have it be the basics that they come up with there? Okay, that's what subaccounts are for. So if you look down here, what I've done is I've created one account called Utilities, and then I have subaccounts underneath it to break it out into the details. Not something that's necessary, but if you want to, you certainly can. To create an account that's a subaccount, you simply create an account new. The type of the account needs to be the same type as the account that it's subbing under. So Utilities is an expense. So if we're going to enter a sub under Utilities, we need to make that an expense. We're going to name it. We'll do Sewer. And then this is where we make it a subaccount. Subaccount of, and we pick what we want it to be a subaccount of, Utilities. Then we click Save & Close, and there you go. Great. So I'm going to make this on the last question. So Fran asks, how would you account for a multi-year grant when you carry funds over from one fiscal year to the next? Okay, that's a hard one to end with. So we're talking about tracking restricted grants, and I need to ask her more questions about it. But what I will tell you is that when you go to enter, and this is in the training products as well. This is actually in the Essentials Training Product. If you have a grant that's paying for things, and you want to track how the money was spent, first of all, for every transaction you put the expense account here, and you put the program here, this customer job field is where you're going to put the grant right here to help for you grant foundation. Then you go to Reports, and you go to Company & Financial, and instead of doing a profit and loss by class, you do a profit and loss by job. Now job and customer, those words are synonymous in QuickBooks, so this might as well have just said profit and loss by customer. And it's going to give you a P&L basically for your grant. You have to narrow it down into the grant that you want. Obviously you don't have any expenses pointed to it yet. Well, I guess I should do one here so that we'll have something on here help for you. I meant to pick the other one, Hugh Grant's Foundation. Let me change it. Probably driving you crazy because you want to. I like QuickBooks. I could stay on the phone with you guys forever. And we like that you like it so much because it's clear you are passionate about giving answers. So this is giving us a P&L for the grant. She says it goes over years. You can change the state range to make it whatever you need it to be. The only other thing that she might be wondering is the amount that is left over. She might want it to show in the P&L for the next year even though we received it in a prior year. And in order to do that you are going to have to do a journal entry for that. And I'm going to have to talk to you offline. Like I said, you can get the tech support with me for just $99 for a year. Terrific. Thank you so much, Greg. I'm going to go ahead and pop us back out to the closing slides here and again point anybody who is still on to check out the different products that are available through QuickBooks Made Easy. Greg is a really engaging instructor as I'm sure you've learned through being in this webinar and his products are even better. So definitely check those out. And also come and check out the QuickBooks donations of different products in 2014 available directly through TechSoup site. Please join us again for future webinars. And thank you again to ReadyTalk, our webinar sponsor for their use of this platform. Thank you so much, Greg, for the terrific presentation. And for those of you who stuck with us, we appreciate it. And I apologize we still didn't get to everybody's questions, but I hope that you walk away having a better idea of how you can get started with QuickBooks 2014. Thank you so much. If you want to keep talking to me, like I said, just go to the website and I'll be glad to help you out. You can even contact me through my site QuickBooksMadeEasy.com. Terrific. Thanks so much, Greg. And look for the email later on today with the follow-up recording that you can watch and view at your convenience and also any of the links that we discussed today. We'll include those coupon codes, the discount codes that Greg mentioned in that email exclusively. So once you leave, that promotional code will not be available to you except through this webinar and the email that you get later today. So have a terrific day, everyone. Thank you so much.