 In this presentation, we're going to continue allocating expenses out by function rather than by nature with the use of the class tracking feature within our accounting system. Let's get into it. We're going to go on over to Excel to see what our objective will be. We're going to be continuing on as we were last time, breaking out our expenses into the categories using the class tracking feature. So you'll recall that we have our statement of activities where our objective to have something that looks something like this, we can break out the statement of activities with donor restrictions and without donor restrictions. And we want to be able to show our expenses by function, what they're used for the programs and the management and the fundraising. And we also need to show them by nature, which means their normal expense categories. So when we put them into QuickBooks, they're usually going to be categorized after normal expense categories. We're going to use the class tracking feature to then break them out by function. We put them in the system. First of all, putting them all into one class so that we can separate the idea of putting them into the system and just doing the normal accounting versus the allocation with the use of our percentages to the programs and other uses to the functions. Now we're going to continue on going up, going to the reports, drilling back down, breaking this information out using the percentages 40, 20, 20, 20 public health and education community service admin and fundraising respectively. All right, let's go do it. We're going to go back on over to our QuickBooks. We're going to be opening up our reports and going back from the reports. I'm going to go down to the reports on the left hand side. We're going to be opening up the good old P and L, the profit and loss, the income statement. I'm going to change the dates up top just for the month of January. So January 1st to 01, 31, 2, 0, January 31st. Then we'll run that report. I'm going to go up top. I'm going to say that we want to make this a classes report. So I'll take it to the classes and then run that report. Then we'll close up the hamburger. I'll close up the hamburger over here. I'm going to hold down control, scroll up just a bit and bring it up to that 125. What I would like to see is just in this report, just the restricted items or I'm sorry, just the not specified items because these are the unspecified that we need to reallocate out. So let's run the report and just look at those. Concentrate on those. So I'm going to go to the Customize up top using the filtering options. I'm going to filter this and say I want to filter by classes. And that's an item that's actually not a class. It's the ones that are not specified. So it's a not specified ones. So the ones that aren't specified, that's the one we want. I'm going to run that report and there we have it. So now we have just these items that we need to reallocate. So we need to specify them so that they're no longer not specified. Now let's duplicate this tab. Let's go to the tab up top and right click on it and duplicate it. And then I'm going to go to the tab the left and open up another P and L. So I'm going to go to the hamburger, open it back up, go down to the reports once again. We're going to be opening up another P and L, another profit and loss or income statement, however you want to name it. And there it is. I'm going to be opening that up. And then I'll close the hamburger back out again. We're going to run this report also for the month of January, January 1st to 13120. And then run that report. And then I also want to see the classes here. So I'm going to go back up top and say we want to see this by class, please. And we're going to check out the classes. Run that report. And so we have that. And then what I'd like to see here is after it's allocated, what it's going to be allocated to, which is going to be the items that are unrestricted categories. So what I'm going to do is say, all right, let's go to our filters up top. And once I take the items out of the non-categorized, I'm going to go to the filter. It'll show up on this report. And I'm going to go to the classes. And let's put the classes up top and let's open up the classes. And then I'm going to say, I want not the restricted things. I want all the unrestricted stuff, which I could just check that box, I think. But I'm going to check all of these that are, say, unrestricted, because these are the subcategories, the subclass fields of the unrestricted. So all of these unrestricted starting ones. I want those in there. And then we'll say, run that report. And then once we reclassify stuff, they'll start to appear here like they did for these first two in this side. All right. So here we go. We're going to go back to the tab, to the right, and everything that's in unclassified or not specified, we're going to specify. And we're going to do that by going here, for example, to the provision for uncollectible pledge. We're going to go into that item. There's our adjusting entry. This is a journal entry. So we're going to go into the journal entry. And then we're just going to go straight through this and apply it out according to our percentages. Now also note, before we go into this any further, you probably want to print the profit and loss by class before you do this, just so you have the numbers. So if there's any changes that you make that you can go back and see what kind of changes or what adjustments made if there's an error, for example. So I'll just keep that in mind. In any case, we're going to go through this again, we're going to say, bring it down here. We're going to go. Prevision, provision for uncollectible. And I'm just going to name off our categories on the left hand side, going to say the 20% admin notice. I've made this column pretty large so I can see the entire 20% over there. And then I'm going to do this again. So we're now going to pick this up again, which is going to be the provision, provision. And so and this one, this time I'm going to pick the category, which is going to be the fund raisings. We'll pick the fundraising tab, tab, and then do it again, provision. And then I'm going to go over here and pick the category and I'm going to put the numbers in later. You might be saying, well, like, where's the numbers? But I'm going to put them in afterward because I believe this is slightly faster way to do it. And this is going to be provision and tab, tab, tab, tab. And then we're going to put it in here too. And this is going to be the education. And now we've got 2020, 2040 being the allocation. So now I'm going to go into our allocation and I'm going to reenter the debits. I'm going to pull up the trustee calculator, trustee calculator and make it a little bit smaller than that. I don't need a huge calculator. It's going to be 21600 times .2. So that's going to be 4320. So 4320 and I'll put that here, 4320. And here, 4320. And here, 4320. And then we can take the 20% 21600 times .40. Was it 40% says right there, 40%. That's why I put it there, 8640. So this is going to be 8640. Let's check if that makes sense according to our table over here. So 8640, 4320. I think that's in the 21600, I think that's right. So let's go back over and then what I'm going to do is I'm going to close the calculator for now. And I'm going to get rid of this first line. I don't want this first line. So I'm going to hold down control and make this a little bit smaller and see if they give me a delete option. So I made it smaller so I can see the little trash can over here. And then I'm going to trash that first one. And then our debits and credits should still be lined up here. So I trashed the first one and our debits and credits should still line up. So 216, 216. So let's go ahead and say save and close on that. And then it says I don't have an allocation to a class because I didn't allocate the first one. That's okay. Because that's going to be the balance sheet account. So I'm going to say okay. And there it goes away there. And if I go back to my tab over here, the first tab, and we update that report so we're working with a fresh report, there's our provision. So there's the 4, 3, 2, 0, the 4, 3, 2, 0, the 4, 3, and the 8, 6, 4, 0, which I believe matches here. Now if I make any errors, I will check it according to this table and we'll go back to it. So bear with me here. So then we're going to go back to the first tab and let's go back. I'm going to scroll back up top and I'm going to go back to our report. And so we've allocated that one out. Now we're just going to keep going. Here we've got the printing and postage. Let's go on into the printing and postage, do the same thing. This one's going to be an expense type form, same application. Doesn't matter what the form is, it's doing pretty much the same thing, we're going to be breaking this out. All right, so I'm going to go back on down here and I'm just going to reallocate this. I'm going to say this is going to be printing and postage. This time I'm going to add the four lines first. I think this will be even faster. Printing and then I'll go and add the classes. So printing and postage, printing and postage, and then printing and postage. So I'm just working, I'm trying to specialize the tasks here, just do one thing at a time, one thing at a time, and I'll make less errors such as that one. Printing and postage. And then I'm going to add the classes at one time, right? I'm going to do this all at once, so I'm going to say, all right, this is going to be the 20%. This is going to be the 40% or the 20% for the fundraising. This is going to be the 20% community service. And this is going to be the 40% education. Then we pull out the trusty calculator. Trusty calculator is being whipped out here and we're going to make it a little bit smaller. I don't know why it has to open so large all the time. Calculator is just like, here I am. Large calculator on the whole screen, times 0.2. And then we have the 2580, let's put this over here. This is going to be the 2580. And then we got here 2580. And then here 2580. And then I'm going to take this 12.9 and multiply it times the 0.4. And then we get the 5160 for the printing and postage. Let's check that over here for printing and postage. This is the one we're on now. So let's make that green. If I can get it out of the way of the calculator, the calculator is in the way. Even when it's small, it's in the way. So I'll say I want that one. Let's make this one ungreen. I'm going to ungreen this one. Make it blue again. Make it back to the blue. And so we got the 2580 and the 5160. So I think that's what we have here. So now I'm going to trash the first line. We don't need the first line. It has been replaced now. And then the total is still lining up to that 12.9. So we're just reallocating them to the classes. Same account, different classes for them. So then we're going to say save and close. And it disappears here, hopefully disappears. And then if I go back to the report up top, back to the report, it should disappear there and it should reappear in this other report on the left magically, magically. It's amazing. We're going to run that report. So we have an updated report. There it is printing and postage magically appearing. Great stuff. Great stuff. Okay. So then we're going to go to the rent and lease. We're going to do this again. We're going to go into the expenses. We're going to go into the expense, another expense type form that we're going to be using. We're going to use our specialized routine to make this really easy by first doing the categories, which I'm just going to type in rent and lease. And then tap, tap, tap, tap, tap, rent and lease, tap, tap, tap, tap, tap, tap, rent and tap, tap, tap, tap, tap, tap and one more type rent and tap, tap, tap, tap. I don't even need to tap that last time. Then I'm going to add the categories here. We're going to say this is going to be 20% admin and then this one's going to be 20% fundraising and then this one's going to be 20% for community service and then this one's going to be 40% for the education. Then we whip out the trustee calculator, which has to be huge on the whole screen and we make it smaller. We're like, calm down calculator. We're going to bring it and then we're going to say 35800 times 0.2. And that's going to be the 7160. So we'll bring this to the 7160 here. And then underneath that, we're going to say 7160 and then once again, 7160. Then we're going to do this again. We're going to say 35800 times 0.4. That gives us the 14320. So we'll say 1432, where's the one, where's the one, 14320. And see if that checks off to our information on our sheet. So we're on the rent, 14 and 7160, 7160 and the 14320, it looks good I think. So let's make this one green now. I don't think we really need to make it green. I checked it without making a green calculator. You're in the way. So then I'm going to make this one green and then we'll make this one blue and make that blue. All right. So then let's go back on over and we can delete the first line. The first line has now been replaced. So the first line has been replaced. If I close this back out, we should be back to the 358, which I believe is where we started with. Right? That's the 358. Yes. Okay. So now let's record that. We're going to say save and close, save and close. And then it should disappear here. It's going to disappear and then I'm going to scroll back up and go back to our report. Disappears there and then we're going to go back to the first tab and we're going to update this and refresh it. So we're working with fresh reports, run that report and it reappears here right there. It reappears here right there. Okay. So then we're going to go to the second tab. Let's do this again three more times and then we get to do this three more times. Oh, there's two here. We get to do it four more times. It's going to be great. So we're going to go into the expense item and then we're going to do this with our really fast systematic way here. We're going to say this is going to be sales, tap, tap, tap, tap, tap, tap, tap, sales. Oh, no, that's not right a little too fast. Slow down. This is going to be salaries, tap, tap, tap, tap, tap, tap, salaries, tap, tap, tap, tap, tap, tap, tap, salaries, tap, tap, tap, tap, tap, tap, salaries, salaries, tap. And then we're going to add our classes classes. We're going to say this is going to be drop down 20% for the admin 20% for the fundraising 20% for the what's this one? Family service and then 40%, 40% for the education. Then we'll pull out the trustee calculator. We're going to make it a little bit smaller again. There's the calculator. It's going to be 209.460 times .2. That's going to be the 41892. So we'll bring that here. We're going to say this is going to be 41892. Next one was going to be 41892. Next one is going to be 41892. And then we're going to recalculate once again. We're going to pick this up at the 209.460 times .4. I think I had four or five. I think I had a large finger hit two buttons. 209.462 times .4. 837.84 and you're probably thinking you should be able to do the math on the 2%. But anyway, so we're going to say there's the 837.84 on that one. Let's check out and see if that checks out for our Excel sheet. So Excel sheet over here and we're going to say that this is going to be the salaries. Now I have something. This is because there's two items to it. So we'll have to check out the two items at the end. So keep that in mind. We're not wrong yet. Hopefully we just can't check it at this point in time. So I'm going to right-click on this. I'm going to make this one blue. That's the one we're focused in on. We're focused in on the green one. Focusing on the green one. Then I'm going to remove the top item. The top item we don't need anymore, it's been replaced. So this should still be the 109.640 which it is. Let's say save and close. Save and close and we still have that other item which was the journal entry. So let's go into the journal entry now. So let's go into that 16800. We'll do the same thing here. Same thing. It's going to be great but now it's in journal entry format. Same thing but in journal entry format. So salaries, S-A-L, tab, tab. So I'm going to redo that. That's actually going to be salaries. I had salaries payable there. So it's going to be salaries and wages. So salaries and wages. So make sure we pick up the salaries and wages. Tab, tab, tab, tab. Salaries and wages. So I'm going to pick up salaries and wages. Tab, tab, tab, tab, tab, tab. And then salaries and wages. Tab, tab, tab, tab, tab, tab. And then salaries and wages. Tab, tab. All right. And then we're going to pick up the classes. I'm going to select the class item. First one's going to be 20% admin. Second one is going to be 20% fundraising. Third one is going to be 20% community service and then of course the education which we're going to allocate the 40% for. And then we're going to pull up the giant calculators. Giant calculator, where's the calculator? And then I'm going to minimize the calculator so we can see the screen and the calculator at the same time. That's going to be the 1-6800 times .2. And there we got the 3-3-6-0. So we're going to say the debit then 3-3-6-0 here. The next one's also going to be 3-3-6-0. The next one's also going to be 3-3-6-0. The next one's going to be different. We're going to take the 1-6800 times .4 and that's going to be the 6-7-2-0. So this one's 6-7-2-0, 6-7-2-0. All right, I think we got things right. I'm going to close this out. I'm going to then delete the first item. I'm going to delete that. And we should still then be at the 16-8 after deletion. Didn't get deleted, hold on a sec. Let's try that again. Delete that with a little trash canny. And then we got the 6-8, it's not 16-8 because I'm missing a number here. So it's not going to be in balance. Let's pull out the trusty calculator. It should be the 3-3-6-0 times 2 or the 6-7-2-0. So somehow these six disappeared. Wasn't my fault. That's where I hit the keyboard messed up. So there we have it. So let's go check that. Now we're in balance down here. And now we're going to say save and close. And then it's, and that's okay. So I'm going to say yes. Now it has disappeared from our profit and loss for the not specified. Let's go back on over to the first PNL. Let's go to the first PNL update, run that report again. And then we have our salaries and wages. So we're at the 45, 252 and the 90,504. Let's check that to our numbers over here. 90,504 and the 45, 252 for the total of the 226, 260. And the total of the 226, 260. So that looks good. All right, two more times we get to do this. Let's go back to the tab to the right. We're going to go to the telephone now. Let's go to the telephone. Click on the telephone. It's going to be an expense type form. We've seen that before, no problem. Expense form. We're going to go into that one and we're just going to replace these items down below. I'm going to say telephone, tab, tab, tab, tab, tab, tab, telephone, tab, tab, tab, tab, tab, tab, telephone, tab, tab, tab, tab, tab, tab, telephone, tab. And then we're going to go and add our classes. It's going to be 20% for the first one, for the admin. Second one's going to be 20% for the fundraising. Next one's going to be 20% for the community service. Next one's going to be 20 or 40% for the education. Then once again, we're going to pull up the trustee giant calculator. Says, here's the giant calculator. Going to minimize that so it's not so giant. And then we're going to say this is going to be 6200 times 0.21240. So we'll put that in the amount here, 1240. Next one also is going to be 1240. The next one's also going to be 1240. Then we do our calculation for the last one, 6200 times 0.42480. So this one's going to be 2480. And there we have it. Now we should be able to delete the first item. I just minimized the whole thing. So we should be able to delete the first item and still be at that 6200. So I'm going to delete this. And then our check amount should still be at the 6200. And it's not, hold on a second. And that's because this last one, I'm missing a two again. So something happened to that first button. For that last one, I keep missing the first button. So now this one should add up to the 6200. So there it is. All right, so now let's go ahead and save and close this. So we will save and close this. And then it disappears here. And then I'm going to go back to our summary. Back to the summary, it disappears there. I'm going to go back to the other report on the left-hand side. We're going to then run that report. And it should reappear here. So there's the telephone 1240, 1240, and the 2480. So if I look at the telephone over here, so there it is, 124. And that all looks correct to me. So I'm going to make that green. I'm not sure we need to make it green right now because I just looked at it and it checks out. But I'll make it green anyways because that's been our custom. So we'll make that green and this one back to blue. And then we're on the last one. We only get to do this one more time. So enjoy it, enjoy it. We're on the utilities. Utilities, we're going to go into that one. We're going to go into the expense here. So we're going to go on into the expense for the utilities. It's an expense type of form. We've seen that before, no problem. So we're going to go down. We're just going to add this again. Utilities, tap, tap, tap, tap, tap, tap. Utilities, tap, tap, tap, tap, tap, tap. Utilities, tap, tap, tap, tap, tap, tap. Utilities tab. Then we're going to add the categories classes. We're going to say this one's going to be 20% admin Next one's going to be 20% for the fund raising Next one's going to be 20% for the program of community service The next one's going to be 20% for the education education All right, and then we're going to pull out the trustee calculator and there it is boom trustee calculator Make it a little smaller a little smaller. We're going to say then this is going to be the 9 1 0 0 times points 2 and So that's going to be the 1 8 2 0 1 8 2 0 Then the next one's going to also be 1 8 2 0 and the next one's also going to be 1 8 2 0 and then we're going to go back to the trustee calculator 9 1 0 0 times point 4 It's going to be the 3 6 4 0 so the next one's going to be 3 6 4 0 and Then I'll close the trustee calculator because we've done with it for now Then I'm going to close this one and we should still be at that 9 1 0 0. So I'm going to close this still at The 9 1 0 0 we are not We're at the 11 6 so let me see hold on a second So this last item should not be 6 3 4 0 but 3 6 4 0 so I transpose those numbers I'm getting a little excited on the last one apparently like So any case I'm going to close that back out and that should be now at the 9 1 0 0 So that looks good. Let's go ahead and say save and close on this one Save and close on this one. It should then disappear on this report Goes away good Stayed there for a little while I was a little worried for a second because it didn't go away for a while and then there's nothing on this report We've allocated them all if we go back to the reports to the left then we're going to say that last one that we Did which was the last all we need to update the report run the report again And then we'll see that last one we did which is going to be for the 1 8 2 0 and The 3 6 4 0 so the utilities here the 1 8 2 0 Okay, there we have it now. We can we can take a look at our bottom line numbers For for the the programs the 1 2 8 5 0 4 so if I go back on over here and say I want to see this by program now So here's the expenses 1 2 8 5 0 4 and then this one is these and then the rest should be the 64 2 5 2 so if I go back to this one We should have the 64 2 5 2 64 2 5 2 64 2 5 2 1 2 8 5 0 4 total programs then at the 1 9 2 and then if you're taking a look at the total unrestricted now It's the 3 21 260 so I'm going to go back over here and that's going to be the 3 21 260 So it looks like the allocation is working out looks correct So you can see the table that we have here We've got the items broken out by their nature and then by a program if we go back on over here Then we've got the items broken out by nature Here and then by program up top so again you can see how this report can be a little bit overwhelming If you get you want to give all this information we need to give this information In the reporting process and we could put them all on on one report basically by by in this format We can do that we could show all this information, but we can also make the adjustment So now that we have our information in this format we can then think about okay How can we then present this to somebody? In a reasonable way and one way would be to try to break it out in this format Have the two columns the width restrictions without restrictions and start there And then add the more detail as needed So note what you can do if we run Our our full report then if we go back to our full reports We could say okay if I went to the customize up top And I looked at the full report. I'm going to remove the filters I'm going to remove the filters and then run that report Notice now we have the restricted items and then we have the unrestricted items So we could think of this report as showing the total restricted and then the total Uh unrestricted right that's what we want to see first and we can filter it down a little bit here But we can easily filter down by exporting to excel and then just hiding those other columns We want to collapse in essence all all of these columns that aren't the total And then we can expand on that we can expand on this report and then say okay now once you have that summary Then we'll give you the breakout which will break out the information for the unrestricted items And and break it out by the expense categories here We can add that information and pretty much like a supplemental type of report as we have Here and we can do the same for the restricted items up top We can do that we can do the same thing we can run a report say okay Here's the detail for the restricted items So we'll talk more about basically formatting the reports how we might put these reports together for You know display purposes to give to say the board of directors There's two needs of course that we have one is just the reporting purposes for the financial statement reporting purposes In which case we need this information generally broken out by nature broken out by function Uh and then giving this information to something like the board for decision making process in which case We we need the same kind of general information of course But we want to present it in a different way in a in a way that's easy for decision making processes to take place And again, we'll talk more about that how we can format these Uh these reports in a future presentation. That's going to be it for now. Let's get out of here