 Welcome everyone to QuickBooks 2016 for existing nonprofit users. My name is Becky Wiegand, and I'm happy to be your host for today's webinar. Before we get started with the content, I want to make sure everyone is comfortable using ReadyTalk, the platform we are using for today's event. You can chat into us on the lower left side of your screen any time you need during the webinar. Let us know if you have any technical problems, or if you have questions for our presenter. We will keep all lines muted except for those of us presenting so that you get a nice clear recording that you can refer to again at a later time. We are going to go fast today. So if you miss anything, please just know you will get that recording. You can rewatch it, play it, pause it, rewind it, do anything you want to get that information again. So keep with us as much as you are able, but know you will get all of these resources later. If you lose your Internet connection, go ahead and reconnect using the link emailed to you. Most of you would have received your reminder email an hour ago. If you lose your phone connection, for those of you dialed in by phone, you can dial back in with the number that has been chatted out for participants. And Susan will chat that number back out to you in a moment. If you are hearing an echo, you may be logged in more than once. So most of you are going to be hearing this audio play through your computer speakers. So if at any time that gets out of sync with the slides, we recommend that you dial in to that tool free number as well. All right, so we are recording today's event like I mentioned, so you will be able to find it on our website at techsoup.org slash community slash events dash webinars. And that is where you can also find the list of upcoming events. You can see it on our YouTube channel at TechSoup Video and also on SlideShare. And again, as I mentioned, you will get this recording in the next couple of days with all of the resources we discussed today. You can tweet with us at TechSoup or using the hashtag TSWebinars if you would like to tweet along with what we are covering today. Again, my name is Becky Wiegand and I am the Webinar Program Manager here at TechSoup. I have been with the organization for 8 years now and spent a decade before that at small nonprofits where I had to figure out how to use QuickBooks and reconcile receipts and all that kind of fun stuff. So I am a learner along with you. And I am extra glad to have Greg S. Bosson, CPA, the founder and CEO of QuickBooks Made Easy with us today. He is a practicing CPA and Advanced Certified QuickBooks Pro Advisor with a full service accounting firm in Atlanta, Georgia. He founded our donor partner, QuickBooks Made Easy, which discounts their training materials on how to use QuickBooks through TechSoup's site, and we will provide links to those later on. Since 2000, Greg has been teaching live QuickBooks seminars around the country designed for nonprofits. So we are really glad to have him on the line with us today. On the back end, you will also see a variety of people here to help answer your questions. The first I want to mention is Karen Woodman, the CEO of 24 Hour Bookkeeper Inc. She is a Certified QuickBooks Pro Advisor and QuickBooks Trainer and serves on Intuit's Accounted and Advisory Council. She works on all versions of QuickBooks and she will be on the back end to help answer your questions as they come in as well. You will also see David Wood and Margaret Alba from QuickBooks Made Easy. They can answer your questions about any of the products. And you will see Allison Bliss and Susan Hope Bard from TechSoup available to answer any of your TechSoup questions. Looking at our objectives for today, we are going to be doing a quick introduction to TechSoup and QuickBooks Made Easy. Then we will get started with the best practices for list setup, how to enter your organization's income, how to enter expenses, reports for your board, how to track those restricted grants, and then we will talk about which donations and discounted products are available to you both from Intuit, which makes QuickBooks, and also from QuickBooks Made Easy. We will have time for your questions throughout. This is a 90-minute webinar so stick with us as long as you can because we will have a lot of time at the end for questions. And know that we are covering QuickBooks Premiere 2016 which is the installed desktop version of QuickBooks in this webinar. If you are on QuickBooks Online, if you are using an older version, there will still likely be a lot of information that is relevant to you with how your organization is set up. But it may look different. Some of the features may not be exactly the same. And we do have some content in webinars that may be more tailored to the product that you are using. And know that those are resources we can chat out to you and that will be included in the links later on in the webinar as well. So getting started, TechSoup is a 501c3 nonprofit and we are global. We are in every blue country on that map which is nearly all of them around the world. And we are serving a variety of technology donation needs and information and educational needs to social good sector organizations like nonprofits, libraries, churches, foundations around the world. If you are joining us from someplace outside of the U.S. you can go to TechSoup.global to find your country and the version of our site that serves donations in your country. If you are joining us from in the U.S. you can go to TechSoup.org to learn about our programs and events. We have served the social good sector around the world with more than $5.2 billion of donations and of product donations and grants to the NGO sector worldwide. And that largely is through our donor partners like Microsoft, Adobe, Symantec, Intuit. Now our donation program, I'm going to mention it quickly here just for those folks who can't stick around until after we have Greg's presentation. But TechSoup.org slash Intuit is where you can find QuickBooks products, the QuickBooks Premier 1 user license, 3 user license, QuickBooks for Mac, and QuickBooks Online. QuickBooks Online is a one-year subscription. It's currently out of stock, but we're hoping that will be back in stock pretty soon. So keep an eye out for that one if you're looking for the online edition. 5.1c3s and public libraries, annual operating budgets of $10 million or less. If you're an advocacy or political organization you are not eligible, but lots and lots of other people are. So go ahead and check out that program if you're interested in either upgrading or getting those products. And let's get started with the topic at hand today. Before we do that with Greg and introducing himself, I want to know how new are you to QuickBooks? We asked that this was an event for existing users. And we did a webinar last week that was geared toward QuickBooks for new users that aren't yet set up. But we want to have a better understanding of really what your expertise is. If you're brand new to it, this is going to go really fast and it may be over your head, but we will share the link to last week's webinar for new users. And we have a lot of other resources we can point to if you're brand new. But just know that this really is intended for folks who are already set up existing users in QuickBooks using it for their nonprofit organizations. And I'm going to give just a few more seconds so everyone can chime in. Right now we have around 730 people in the webinar. So know that questions are going to go fast and furious. We'll do our best to answer them. But with that size group of people, we are not going to be able to get to everyone's question during 90 minutes. So just keep that in mind and we'll do the best that we can today. So I'll give just a couple more seconds to have everybody answer. And answers are going to continue coming in. But I'll go ahead and show most people in the group 60% know QuickBooks pretty well but not for nonprofits specifically. So Greg is going to certainly share some things that will help you tailor how to use it for nonprofits. For that 20% that say they know QuickBooks probably better than you or me, I'm sure most of you do. And let us know who you are if you might want to be a presenter down the road, right Greg? You have a little bit of competition in the room. This is great. So with that in mind, thank you all for participating in that poll. And I'm going to go ahead and have Greg Boston join us on the line and tell us a little bit about his work and get us started on this training. Thanks so much for joining us Greg. Thank you Becky. Thank you Becky. All right, hi everybody. How's it going? Welcome back if you were here last week. Say hi to me. I want to see hi on the chat. Say hi, hi, hi, hi, hi. I want to see it to make sure you can hear me. There we go. Roni is the first person who said hello. Cool. Lots of hi's. All right. Okay, all right, cool. Okay, okay. That's trippy. All right, so that's probably going to make people mad that are trying to answer the questions because now you have all these hi's. But anyway, who's from a foreign country? If you're from a foreign country, say what country you're from. Let's see. The Dean is from Arkansas. We've got people responding. Just know that folks responding, you can't see what everybody else is chatting in. But if there's stuff that's useful shared in the chat, we'll try and make sure we're sharing it out with everybody. And I love the question, foreign to who? So who is not from the U.S., which is where Greg and I are both based. How about that? Yeah, who's not from the U.S.? Oh, that's funny. Adirondacks, it's icy there. Vermont, Peter says that's foreign. Okay, that was fun. I did have one person from Uruguay though. So I think that's the one person we have from a foreign country. All right, so let's roll. So if you don't know who I am, this is me. That's my little picture. I'm a CPA with an accounting practice in Atlanta, Georgia, and I've been in practice for probably 25 years. I'm an advanced certified QuickBooks pro-advisor and I have clients all over the country. Many of them are nonprofits. In addition to that, I own the company QuickBooks Made Easy. And what QuickBooks Made Easy does is it basically is all about teaching businesses how to use QuickBooks. And we specialize in the nonprofit industry. So how do we teach people? We teach people in one of three ways. One, we have DVD training products. We have two products, and actually the pictures are down here. One is called QuickBooks Made Easy, The Essentials. The other is Beyond the Essentials. The Essentials you can actually purchase on TechSoup at a discounted price. And we're going to give the Beyond the Essentials out at a very cheap price. We're going to do it for 48 hours. We'll talk about that later. Also, we have TechSupport. And last week we gave away TechSupport for $99 for an entire year. And some of you have already called in with questions and everything from last week's webinar. So that's really, really cool. Can't run that again. That was crazy, but we're still going to run a discount on the TechSupport. And then finally, we have live seminars across the country. And in case you are in one of these cities, this is where we're going to be next year. This is most of the cities. There will be more. We don't have all of the dates lined up yet, but we do have these, Portland, Austin, Denver, North Carolina, Greenville, and Seattle. So that's a full day live seminar. And there's a little discount for that. Here's a little discount code. And we'll get into this at the end of the seminar again to show you where you can go. This is the product. It's a training product that picks up where the essentials leads off and teaches you all kinds of advanced stuff by using QuickBooks with your nonprofit. It's normally $229. We're giving it away for $99. And then the TechSupport, which is normally $299, we gave away for $99 last week. We're going to give it away for $199 this week. All right, I think that's it. There's one more. No, we'll worry about that poll later. I don't want to do that poll just yet. Is it okay to undo that? Did I mess that up? I don't know if I did or not. We can reinsert it if we need to. Yeah, just reinsert it. I didn't know that's where that was. All right, so I'm going to go back a little bit just to kind of go over again what we're going to be covering today. I just got to find that slide again. And this is it right here. All right, so we're going to do just a little, we've already done kind of the introduction. The next thing we're going to do is we're going to look at kind of the best practices for how to set up your books. And we covered this in detail. That was the majority of what we covered in last week's seminar, so I'm just going to quickly go over it in about 5 minutes. Then we're going to look at how to enter your income and how to enter your expenses. Now that's a lot, isn't it? But we're going to do kind of the basic stuff that nonprofits need, how to enter a donation, how to enter a grant. We're also going to look at how to enter expenses, how to point them to different programs, and then finally we'll look at the reports that you might need. And then we'll look at tracking restricted grants. This is one topic of the many topics that are covered in the trading products. I just picked one that I think a lot of people need. And then at the end we'll talk about how to get the prices, the discounted products, and then we'll hopefully have a half hour to answer questions at the end. We may run a little bit long which might mean we only have 20 minutes, but I'm going to stop periodically as we go through just like I did last week and see if people have questions. And plus we have Marga and Karen and David doing questions on the back end, but I like to do live questions too. All right, so I'm going to go ahead and share my screen now. And the other thing I wanted to say is that when you do webinars, sometimes things move kind of slow on your computer screen because your bandwidth isn't that great. So I like to try and make my mouse move really slow to make sure that what I'm saying is lined up with what you're seeing. So if for some reason that doesn't, is not working for you when you need me to slow down, please say something in the chat and they'll let me know. All right, so I think having said that, let's go ahead and just talk real quickly about the setup. This is actually only going to take a second. We did this last week. Here's basically the deal. When you're setting up your books for a nonprofit, it's very important that you set up the chart of accounts correctly and you set up the programs correctly. So I'm going to start by just looking at the chart of accounts. And the main point I want to make is I want you to take a look at how I've set up these income accounts. Notice how I have one called Individual Contributions, one called Corporate One Found Foundation, and one called Government Grants. Every single person listening on this line, all 7 or 800 of you should have those 4. The reason why is because that's how I have to report it on a 990. That's how auditors need it. I'm an auditor. I audit about 25 nonprofits a year and we report like that on a financial statement on it. And it's a good way for a board to see where your money is coming from. What you do not want to do is to use your chart of accounts to track restricted grants. So we don't want to have a restricted grant income account. We don't want to have a separate income account for each one of our grantors also. When it comes to tracking restricted grants and our individual grants, we do not have accounts for that. We're going to use another list called the Customer List and we'll talk about that later. You want to have main income accounts, one for program, one for membership dues. If you're a membership association, I know a lot of you have different levels of membership. You have the general membership, you have the affiliate membership, you have the family, corporate, retired memberships, whatever. Don't set up separate income accounts for those. Don't have subaccounts for those. We're going to use another list called the Items List to track that and we'll go through that in a little bit as well. So just main categories, not very many income accounts. Expenses are also something that people, I said this last week, they screw this up a lot. When it comes to expenses, nonprofits have to track these things in two ways. One, nonprofits need to know what the natural type of expenses, the natural category, salaries, payroll, health insurance, rent, postage. These are generic expense accounts that most nonprofits need. They're not specific to your nonprofit organization. This is just a natural way of thinking about expenses and that's how I want you to set up your expense accounts. What I do not want to do is I do not want you to use the chart of accounts to track, the expense accounts to track other things. And I'll give you an example of something. In addition to having to track the natural category, and I said this last week, but I'll ask again, every nonprofit needs to track whether an expense is part of one, two, or three buckets. There's three buckets that expenses go in for nonprofits. And funders want to know that most of the money is spent on bucket one as opposed to bucket two and bucket three. What are those three buckets that you have to put expenses into if you're a nonprofit? Somebody chat Becky up and then she'll let me know. Anybody, what are the three buckets? We covered it last week. So waiting for the responses to roll in. We've got Program Admin Fundry. There you go. That's good. That's it. Program Admin and Gold Stars. That's right. Gold Stars. So what we said last week is we do not use expenses for that. We do not use the chart of accounts for that. What we use is the class list for that. So I'm going to go to lists, and then I'm going to go to class list right there. When I click it, it's going to give me a list of my classes and our programs basically. So if you are a small organization, perhaps you are, I think I used the example of an organization that rescues dogs. As a matter of fact, I talked to somebody over the phone the other day that was in the webinar last week. She only has one program. So she has one class called Dog Rescue. Then she'll have a second one called Admin and then she'll have a third one called Fundracing. In this organization we have three programs. This organization, Synergy Now, that's the organization we're using. It's all about getting the country on environmentally friendly forms of energy. We have a guidance center. That's our main program. We have an annual conference and then we have an aware campaign where there's some lobbying and some PSAs and stuff like that. So those are our three programs. So again, how to set things up? You put the natural category of expenses on your P&L, salaries, payroll taxes, health insurance. These are the same for pretty much everybody on the call. And then you use your class list to track your programs. Now you bought yourself a little extra work and you'll see it as we enter transactions. But over here, when I click Account, here's where I can put the expense postage. But over here in the class option I can put what program it relates to. And yes, you can split a transaction up between multiple programs. Now we're going to cover restricted grants today, but I'm going to tell you right now, here's where you say if it's paid for out of a grant. So you've got now a place where you can say what the natural category is, what grant is paying for it, and what program it relates to. But we'll get into this later. Let's take a look and show you the benefit of using this. If I go to a report, P&L by class, this gives me a beautiful report that has a column for each one of your programs and then one more for admin and one more for fundraising and then a total. This is stuff that I forgot to classify. But the point is, is I can very easily look at it and see whether or not a program is making or losing money. The Guidance Center, we got all this money. We spent all this money. We've made $23,000 on the Guidance Center. The conference May 22-9, the Aware Campaign Law 6400. So that is really the main point that I wanted to make about setting up a couple more things. If you would like to use QuickBooks to track your donors, where would you set those up? You set those up in the Customer List. So in QuickBooks, there's a list. It's called Customers. Now if you have the Mac version of QuickBooks, it's not going to have a Flash Donors. If you have any other version than the nonprofit edition, it's not going to have Flash Donors. It will just say Customers, but it's all the same list. So I'm going to click on it. And here's where all of your donors will go. To add a donor, you just click New Customer and you add the donor there. This is stuff that we covered last week. Now anybody who is a customer, a donor, a grantor, a student, anybody that gives you money goes on this list. Then we've got the Vendor List. And vendors, that's where you put people that you write checks to or that you pay. They go on the Vendor List. To get to the Vendor List, you go right here and you click Vendors. And this is where you add a vendor right there. So it's pretty simple. If you happen to be on the online edition, Becky, go ahead and tell me. You guys chat me up, those of you that are on the online edition. This seminar is really meant more for desktop, but I want you guys to get something out of this thing if you signed up and here you are. So here's the online edition. So I'm just kind of showing you that everything is pretty much the same in the online edition. You just have to go to different places. Here's where you go to set up your accounts right there. Well, it's signed itself. Let me get this back in here. But everything is pretty much the same in the online edition in terms of how you set things up. It's just that you go to different places to do it. Okay? To get to the… Becky, lots of folks are saying they used the online edition. Some are saying they used both online and desktop installed, and some have commented that they don't see, what was I saying, they don't see in the online version any non-profit edition or any other kind of non-profit customization. The non-profit edition is what it is. And there's actually three choices. I think it's called Simple, and then Essentials, and then Plus. Plus, online edition is the one that has budgeting, and it's the one that has the ability to track your program. So you got to have Plus. And that's the one that TechSoup is on back order now, but that's the one that you can get through TechSoup when they get it in again for $50 a year. But anyway, here's where you go to set up your chart of accounts right there. If you click on All Lists, and you click Classes, here's where you go to get your classes, and there's where you would set up new ones. To set up your donors, members, or students, you click on this Customers icon over here. Here's a list of my donors. Here's where you would add a new one. And then the same thing is true for vendors. You just click over there, and the list will look very similar. Here's my vendors. Here's where I go to get a new vendor. And I'll just show you. I'll go to a report, and I will go to a Profit and Loss. Here's a Profit and Loss. And then what I can do is I can customize it. And you see here where it says columns? I can make it by class. And then I'll get the same type of report that I got in the desktop. So everything is the same. It's just different places to get to it. So I'll stop. I'll take maybe one or two questions, and then we'll move on. Who has a question? Yep, we've got folks asking about the three buckets that you mentioned with admin, fundraising, and program. And folks are confused about what to do with something. So what about miscellaneous expenses, or what about lobbying expenses? Where would those go? Purchasing equipment, utilities, payroll? I imagine they could all go into different buckets. But what's your answer for all of those things that aren't super clear? So it's more of an accounting question than a QuickBooks question. But in general, first of all, you want to put as many expenses as possible to program so that your program costs are high as opposed to admin and fundraising. That's for sure. The second thing is some expenses are obviously for a program. But there are certain expenses that need to be allocated. They're kind of indirect costs, and those come in two areas. One is payroll, and you definitely want to split people's paychecks up based on the hours that they worked in each program versus admin versus fundraising. And then the other area would be expenses like rent, utilities. I like to call them facility costs. The program, the admin, the fundraising, it's all going on in your offices. So you want to split all those up between program, admin, and fundraising. So if somebody says, what do I do with miscellaneous expenses? Well, I've got to find out what they're for. If it's for a program, you put it to the program. It's for admin, and you put it to admin. So it really just depends. There was another example. Oh, lobbying. Now lobbying is probably always going to be related to a program. Lobby is not an administrative cost. That's something you're doing to further the, probably your nonprofit's mission. So I would imagine that you would put that in program, certainly if you're a membership association. I know a lot of those do lobbying. But let me go on here because I want to make sure that we have plenty of time for more questions. So what I'm going to cover next is probably the hardest part of today. And what that is, is we're going to talk about how to enter your income. So there are two main ways to enter your income. And they're in the slides, although for purposes of time I'm not going to worry about showing you the slides. I'm just going to kind of say it. So there are two main ways of entering your income. And one of them is going to be called the lump by category method, and the other one is called the individual method. Now here's the deal. If you would like to use QuickBooks, well no, let's start with the other one. If you have another database that you're using to track your donors, your members, or your students, perhaps you have Salesforce, perhaps you have GiftWorks, or DonorPerfect, or DonorTools. If you have any of these other pieces of software that you track the donations in, or the membership dues you're doing, you're invoicing out of it, then you don't want to use QuickBooks as a donor database. You're going to use the lump by category method. So I'm going to show that one first. Who is it that does not want to use QuickBooks as a database? They've got some other databases they're using. Chat tell Becky what database you're using. I want to know. We've had a lot of people asking about how to use QuickBooks as a donor management tool or database, but I know a lot of people aren't. So we've got folks who are saying, DonorPerfect, Salesforce, ExceedBasic, GiftWorks, Razor's Edge, FileMaker, eTapestry, eCryos, CiviciRM, a lot of little green light, Bloomerang, Nutsuite. We've got lots of different types of donor management. Church Community Builders, so for those of you joining us from Churches, Breeze Church Management Software, Salsa Labs, lots. Becky, that's good. I'm just kidding. A lot of enthusiastic answerers out there. It's great. Great participation, Hen. I know, I know. That's awesome. All right, so here's the thing. So these guys are using an outside of QuickBooks database. They don't want to have to enter every single transaction into QuickBooks. It's in the other database. So I like to tell you guys to use the lump by category method to enter your income into QuickBooks. So you do that by clicking this record deposit button. So when it's time to go to the bank, you click record deposit. Understand, I'm not invoicing out of QuickBooks. I'm doing it in the other database. I'm not recording any of that stuff in QuickBooks. It's just when it's time to go to the bank, I've got to tell QuickBooks so the checking account will be right. So what I'm going to do is I'm going to enter, it's called the lump by category method. I'm going to enter my income lumped by category. When I mean category, I mean basically by income account. So we'll say we got membership dues. We got four checks. I don't want to do four lines. I'm just going to do one line. However, the total of them I'll add it all up was $425. Then let's say we had a grant that we got in. So they'll say it's a corporate grant and it was $10,000. And you want to make sure that this is basically going to match what's on your deposit ticket before you go off to the bank. Or make sure that it matches what your credit card company deposited if you're entering that. So let's see, then I've got some individual contributions and we'll say the total of that is $225. Now, I said that we lump it by category. Here's where you could put the name of the person, but again we don't need to do that. It's in the other databases. As a matter of fact, you wouldn't even have your donors in the customer list if you're going to use another database to track your donors, members, or students. So you leave this blank. You leave all these blanks. The only thing you wouldn't leave blank is class. It's very important that when you enter income, even if you're going to use the lump by category method, that you enter it by class. And the reason why, and I just pulled up this report here, the reason why is so I can still get good information about how profitable each program is. If you're a performing arts organization, each one of these classes would be a show. So it's kind of cool. Membership dues, that's for membership in the guidance center. I'll put it there. Corporate grants, we'll say this was for the synergy conference. Now individual contributions, when you get contributions that aren't restricted for any particular program, you can use them however you want to. Where do you put it here? Does anybody know? What class would you put this to if it's not for a program? It's just a general contribution. And these are the choices. Program admin. Some folks are guessing admin. Some are saying fundraising. So it's either admin or fundraising. Just pick one and stick with it. The only thing is make sure you don't put it to the program because you don't want your unrestricted contributions in the program column. This way you'll be able to figure out how profitable whether or not a program is paying for itself without using your unrestricted revenues. So I'm going to put fundraising here. So that's the lump by category method. Now the only thing about this method is that sometimes it can be a problem. If somebody wrote you a check for $50 for a donation and you entered it and then for some reason it never cleared the bank and the donor calls you and says, did you get my check for $50? Well if you got an outside Equipbooks database then you can look in the database and say, yeah, Salesforce says we got the money but because we didn't enter the line separately here, we don't know which deposit the check belonged to. So I know this isn't the best and that's why some people say, well I'll just enter every line. Well then you're double working. So what I say, this is a solution that I've come up with. When you make the deposit put some sort of identifying number here in the memo field. Take that number. Go back to your outside Equipbooks database, Salesforce, whatever. Put that number next to the checks that make this up. That way you have something that connects this to the other database. So that's the lump by category method. Now ideally what you would rather do is have one stop shopping where you enter a transaction and you're done. You don't have to enter it individually into another database and then enter into QuickBooks also when you go to the bank. You want to be able to just do one stop shopping. Can you do that? Absolutely. That means, and this is what most of you are wanting, most of you want to use QuickBooks as a donor database. You don't want to have to deal with learning another piece of software. Can QuickBooks function as a donor database? Absolutely it can. Now if you're going to use QuickBooks as a donor database, you want to use what's called the individual method. That's the individual way of entering your donations, your membership dues, your tuition, your fees, whatever. You enter them by the person. What that means is you want to get your donor list, your member list, your student list. You want to get it in the customer list. New customer like that right there. You can also import these things into QuickBooks. You can actually cut and paste a list from Excel into QuickBooks. You can actually do that. And people want to know, well how good is this? Does it have a lot of fields? Well look at all the different fields it has, name, address, phone number. I don't have a lot of these filled out. I probably should. Additionally, there's a notes section where you can put notes for the donor or the member or the student. Here's to dues where you can set yourself up reminders. Whenever you email somebody out of QuickBooks, and we'll see how you can email things directly to donors, members, or students out of QuickBooks, it lets you know any emails that's been sent. And these are all the transactions related to the donor. So it's pretty cool. Now if you're going to use the individual method for entering your income, then there are two places that you can do it. One of the places is wrong, and the other place is right. So here's the wrong way. The wrong way, and if you've been using QuickBooks just for a little bit, you may have been doing this, is if you want to use QuickBooks as a database, this is not the screen that you go to to enter your income. Now let me show you what I mean. I'm going to enter a donation for Parker and Faith Ashford. It is Individual Contributions. We'll say it's a check number. The payment method is going to be check. It's unrestricted, so it goes to fundraising, and we'll say it's a million dollars. Alright, million bucks. So why is that not good? And then you go into the next one and the next one until you had what the deposit was. Well here's why it's not good. If you want to use QuickBooks as a donor, member, or student database, you can get incredible reports out of it. The main place we're going to go to get our reports from, or one of the main places, is the sales section. And this is in the online edition as well. When you click sales, I'm just going to click one of these reports, a sales by customer summary. This basically gives you a list of, in this case for this organization, their customers or donors. It would be giving them a list of their donors and how much they've given you over a period of time. Now I can change the date range. I'll make this all dates. Now I've got a list of donors and what they gave me from the beginning of time. You see the show columns up here. You see how it says total only. I'm going to click it and make it be by year. How cool is this? Now, and look at this, we're in QuickBooks. We can see what people gave by year. We can see that this Marie and Chad Brown, they gave every year except this year. They haven't given this year. By the way, the date in the room today or in the webinar room today is June 32, 2020. So don't freak out about that. But anyway, maybe we need to call them. They need to give us some money. Same thing with this Gordon Grelly here. Pretty cool, isn't it? This is just one of the reports that you can use. Now I'm going to go ahead and make this total only again. Oh, by the way, there's this sort by thing. Check this out. I'll make it total. Now it goes from least to greatest. If I click this little drop arrow, this A to Z with the arrow pointing down, now it's the highest to the lowest. Isn't that neat? So all of this is to point out that QuickBooks is a really cool donor database. There's more stuff I'm going to show you. But this is the wrong way to enter income if you want to use QuickBooks as a database. Now let me show you what. So I'm about to enter a million dollars for Parker and Faith Ashford. So far over here they have only given us $12,315. Now watch what happens when I save this. It's saved. It's not on here. Why isn't it on here? Well maybe I need to refresh it. Nope, it's not refreshed. I mean it's refreshed but it's still not there. Well this is really weird. Maybe it's not in my bank account. Oh no, it's in my bank account. There's the million dollars. So why is it not showing on here? That's why you can't use the make deposit window if you want to use QuickBooks as a donor database. That's the wrong way of doing it. Your books will be right but you won't be able to get, thank you letter out of QuickBooks like I'm going to show you later. You won't be able to get the information on reports. This is the wrong way of doing it. So I'm going to go ahead and delete this. We'll go to Edit and click Delete. So now what we're going to do is we're going to do it the right way. So let me just go ahead and pull up that report again. Hopefully it's still on the screen. Yeah, here it is right here. I'm trying to go slow here with the moving of the mouse. So now I'm going to do it the right way. Does anyone know what form I'm supposed to use if I'm going to use the individual method? Chat Becky up and tell her. What form should we be using? Anybody know? I'm waiting for all of the Gold Star responses. We've got sales receipts. We've got donations. We've got invoice. We've got sales orders. All right, smart people. The main form that people use unless they're going to invoice, the main form that people use is sales receipts. Now if you have a nonprofit addition, the form is going to be called Donation. If you have the online addition, it's going to be called Sales Receipt. If you have the Mac version, it's going to be called Sales Receipt. If you have QuickBooks Pro, it's going to be called Sales Receipt. I'm going to go ahead and click this here. Even in the nonprofit addition, when you pop it up, yours may still say Sales Receipt. So I'm going to show you real quickly. Let me just get that other report up on the screen. And then I'm just going to show you real quickly how to invoice Parker and Faith Ashford. We entered a check. Here's the check number. And it went for individual contributions. And it's unrestricted. What class should it go to, guys? I'll just say Fundraising. And then it's $1 million. Now when I say this, it is going to appear. You see how it's right there now? $1 million, $12,000. As a matter of fact, this is kind of neat in QuickBooks. You double-click, takes you to all the transactions that made it up, and then I can double-click and get to the individual transaction. So this is what you're supposed to do. Now I know most of you haven't used this before, or many of you haven't. So I need to make you feel a little bit comfortable about this. So the first thing I need you to understand is that if you understand and you feel comfortable in the Make Deposit window, it's the same fields in the Sales Receipt window. Let me prove it to you. Receives from, this is where you put the name of the donor, this is where you would put the income account, this is where you'd put the check number, the payment method, check, cash, credit card, the class, that's your program, and the amount. Name of the donor, income account, check number, payment method, class, and amount. These are the same fields that are on the Sales Receipt. Name of the donor, right there. Income account, check number over here, payment method over here, class over here, and amount. So it's the same pieces of information. Now the thing about it is you might be thinking to yourself, Greg, are you out of your mind? You're telling me I've got to create a separate one of these for each one of my donors? Are you crazy? Well let me tell you something, if you're doing the Make Deposit window, when you get to the end of the line, you've got to go to the next line. So you've got to click tab or move the mouse to get to the second line. Over here, it is its own form, but when you're done you simply click save and new to get to the new one. It's the same number of clicks I know I've counted. And it's actually a really good thing that you have to do a separate form for each one of these because guess what? You can actually print this thing out or email it and give it to the donor and you've satisfied your requirement with the internal revenue service of notifying the donor. No more having to try and do the letters somewhere else. Now here's the thing, when you preview it, it looks like this, and this is most certainly not what you'd want to send your donor, but check this out. You can create your own templates and I show you how to do this in the trainings. And let me show you what this one looks like. How about that? It's a million dollars. It's kind of big. Let me go back one and I'll show you another one. That's how it looks like using the bad template, the one that comes with your QuickBooks. But all of you, if you have the desktop version can create your own and then it comes out looking like that. Can you imagine? You enter the donation and out print the thank you letter. I've even put my signature image in the form so that I don't even have to sign it. And if you don't want to mail it, you can email it. Quick here, email. And as I told you, when you email the sales receipt to the customer, it's going to appear in the customer list. Now there's a couple of things I've got to teach before I finish and then we'll take some questions. One thing that I need to point out is that although most of these fields are obvious, this is where your donor is. It comes from the customer list. You type the check number in. You simply pick the payment method. You put in a dollar amount. The class, that was your program, came from the class list. The only thing that's weird is what I told you to do here is to put the income account, but that's not what this column is. This column is called item. What the heck is an item? Now I could spend two hours trying to teach you what items are, and I don't want to do that. Instead, I'm just going to make this real easy for you. Items equal income accounts. Items equal income accounts. So if you are going to be using QuickBooks as a database, you are going to need to create items, at least one item for each income account that you have, and then you'll be able to start using the receipt. So let me show you what I mean. What you would literally do is you'd probably, after the webinar today, you'd click the chart of accounts list on your computer, you'd look and see how many income accounts you have, and hopefully you won't have many. If you have too many, you probably need to pare it down. So here's one for individual contributions. So then what I'm going to do is I'm going to go to my item list. I'm going to go to the bottom left hand button. I'm going to click New, and I'm going to create an item for that account. Now it's going to ask you what type make all of your items the service type, even if they are things like if you are selling teachers or something. Just make them the service type. And then here's where we name it. And you can name it the same name as the account that it points to. So individual contributions. And here's where the rubber meets the road. This is where you assign it to an income account, individual contributions. Once you do that, then whenever you use it on one of these sales receipts, here's the one that we entered, when I put that item there QuickBooks goes, oh, you must be wanting me to point it, and I'll just go back to this one, you must be wanting me to point it to the individual contribution's income account. Okay. Now you notice there's a description and a rate field, and they're blank. And I do that on purpose because there's not usually a default rate for a donation, but there may be for membership dues. Here's membership dues, annual membership. We usually charge $65, and we're pointing it to the membership due income account. Now if you have another membership due, maybe you have different rates, I'll create a second one, make it a service, all your items are service, and I'm going to call this Affiliate Member Deuse. And we'll make those a little bit less expensive. We'll make those $35 instead of $65. But I'm still going to point it to the same membership dues account. So then, go ahead and save this, when I enter a transaction here, if I put membership due, it automatically, as soon as I make this big so you can see it, that the rate $65, but if I put Affiliate Member Deuse, then it's only $35. Now if it's things that you're selling, you can put quantities in here. And I'm just going to put some quantities in here so that you can see what it's doing. It multiplies it by the rate, and it puts a total. Now you wouldn't be entering multiple membership due payments from one person. I'm just trying to get some data in here so I can show you something. I'll make this for the Guidance Center, and I'll go ahead and save it. And then I'm going to show you another report. Reports, Sales, and it's called, not Sales by Customer, it's called Sales by Item. So I'm going to go ahead and click this, and it gives me my income, but by item, instead of by income account. And what you really need about items, guys, is that accounts, if you were just to set up an account called Affiliate Member Deuse, you could get the total dollar amount by looking at a P&L, but you would never know the quantity. If you wanted to use QuickBooks as a database, you need to use items and use the sales forms. Then I can see, oh okay, I've gotten 10 of those. If I make it from the beginning of time, I can see how many I've got from the beginning of time, which is still 10. That's funny. But look at individual contributions. Even if you don't have different rates that you charge, we can see not only the total number of contributions we've gotten from the beginning of time, but we see the dollar amount, and then it gives me what it calls the average price. This is actually my average donation, under $8.21. Isn't that cool? Yes, Greg, I think that's really cool. That's me talking to myself. I've heard myself talk too long. I need to take a break and answer some questions. I've got one more little thing I've got to do though, and then I'll be able to do some questions here. Let me get back up. Here's a little thing. I'm going to go ahead and delete this. Okay, and then we're just going to enter one like we would really do it. So Delphine Adams, paid by check. The check number was $122. It was an individual contribution. It goes to fundraising, and we say it was $75. Let me go back. There it is. All right, so here's the deal. There's one more thing that you've got to decide before you save this transaction, and it has to do with this field right up here called Deposit 2. When you click this drop-down, you'll see you have choices. And there's more than just the bank choices, but I'm going to tell you that what you want to put in this field is either one of the bank accounts if you're depositing to the bank, or un-deposited funds. Now, how do you know which one to pick? Here's the deal. Let's say what's today, Thursday? So it's Thursday. You just came back from the mailbox. You got this check in for $75. You are entering it into QuickBooks. If you are going to go to the bank right now with $75 check and no other checks, and you're going to close the door and run and deposit it all by itself, then you pick the checking account. What that does is it records not only the fact you got the money in, but it also records a deposit into the checking account. So when you get back from the bank, you don't have to record a deposit. It's already occurred. But that's not what we do. What do we literally do with that money? Y'all chat Becky up and tell. What do we do with that check for $75? Say it's Tuesday. It's the only check we have. Where do we stick it? Forget about QuickBooks. Where do we put it in real life? Where do we put it? Anybody know? Cashbox, put it in a safe, put it in a pending deposit, put it in an envelope. An envelope. That's exactly right. Everybody is sticking it somewhere. Usually people put it in a top drawer, the drawer with all the pins in it. So if that's what you're doing, you're setting it aside to deposit it. You don't want it to go to the bank account. It's not time to go to the bank. So instead, you're supposed to pick undeposited funds. Now undeposited funds, it's an account in your chart of accounts. I'm opening up the chart of accounts now so you can see it. And where is undeposited funds? Here's undeposited funds right here. So in this account, this is basically the representation in QuickBooks of the money waiting to be deposited. It's the money sitting in the drawer. Some people actually change the name of the account to that money in my drawer, because it's money waiting to be deposited. So I'm going to go ahead and change the name like that. Now if you make the mistake of putting it in the bank account, then QuickBooks thinks you deposited every single item separately. So what's that going to make it hard to do at the end of the month? Somebody tell me, what's it going to make it hard to do at the end? Anybody know? Reconcile. Because every single transaction will be its own deposit in QuickBooks, but you'll only have four at the bank for the month, and you'll have 150 in QuickBooks. So be out there reconciling, trying to add it all together or figure it out. That's crazy. So what you're supposed to do is you're supposed to pick undeposited funds. So take a look at this. You see how that money in the drawer is at zero? I'm going to go ahead and click Save and Close. That money in the drawer is at $75. Now let's do a couple more. Let me get back over here to the chart to make it a little bit easier. So I'm going to do another one. And we'll say this one is a grant. Help for your Grants Foundation. And it was a check. It was a big old long check number. We'll say this is a foundation grant, and it was for the Synergy Conference, and it is $10,000. So now keep your eyeballs right here. Now the bank is not going to change. Usually when we say this, that's the only thing that changes. By the way, if you check your computer, if you have the desktop, this field may not even be here for you. And that's because QuickBooks saw that people were screwing it up so much that they created a preference. And if you turn the preference on, this goes away, and everything automatically goes down to positive funds. But I turned off the preference so I could show you what was really happening here. So I'm going to go ahead and click Save and Close, and now we'll go back up here, and this says $10,075, and the bank account didn't change. So let's go ahead and finish up because the last thing that we have to do is we have to actually go to the bank. So at the end of the week, at the end of the week, you open up the drawer, you take the checks out of the drawer. In QuickBooks you click this record deposit. Now when you do this, there it is, that things are sitting here waiting to be deposited. So I'm going to check them both off. And this is a good check and balance to make sure that nobody stole any checks out of the drawer. I click OK. It copies it to the main deposit window. You make sure that this is the actual amount that you're going to deposit. You can actually, if you'd like, print the deposit slip if you want to. You can order these from Intuit. If you'd rather, if you hand write your deposits, you can print a deposit summary, and I would encourage you to do that. What it is, it's a list of all of the items that are about to be deposited. It's in an 8.5 x 11 sheet of paper. And what you can do is you can take that piece of paper, and then you can staple the little receipt when you get back from the bank, the little deposit slip that just has the total on it. You can staple that to that 8.5 x 11 sheet of paper so you have a list of what made it up. So that's kind of the whole ball of wax. Now I will tell you, in case you're wondering, this works the same with credit cards. If you were depositing credit cards, the only difference is if there was a little fee that got taken out of the deposit, say the deposit was only $10,068.22, then you got to put the minus here of whatever the fee was so that it matches what was actually deposited. But that's your process from soup to nuts. Let me delete this one here. So let's just show you, lists, chart of accounts, that money in the drawer is at $10,075, checking is at $101,414, I'll click Save and Close, and now it's at $111,489. And that money in the drawer is at $0 again. So it is 3 o'clock, and I've got two more topics that I need to teach. I recognize that I am fairly far behind here today, but I am going to stop now, take a couple of questions, and then we'll keep going. When the seminar is over, we'll finish up, but I will stay on the line to answer more questions that you guys have. So don't worry if your question is not being answered immediately. If you want to stay on the line afterwards, I'll keep answering questions. But Becky, go ahead and give me, see if you can find just a couple of questions that a lot of people have about income that I might be able to address. We have a question that hopefully would be pretty quick to answer. What if a vendor is also a donor? Where do they fit? How do you contact them? That happens a lot where you have the same person that is, you give money to them, but then they give money to you. So they need to be on both lists, both the vendor list and the customer list, and you cannot have the same name on more than one list. So what people do is they will basically add them to the vendor list. They'll use the same name, but they'll put a dash V for vendor. And then it's technically not the same name as far as QuickBooks is concerned. Right here it would just say Jones-V. And then in the customer list it would just say Jones. Now don't worry, V is not going to print on checks that go out to the vendor. That's why over here in the payment settings there's a thing that says print name on check as, and you can just put that regular name there. And it will, you can double up on that. It's just this field here that can't be the same. One more question. Great. We also have folks asking, where do you enter fees for credit card processing bank fees that don't match up with what you may actually receive as a donation? Yeah, now I'll do this again. I showed you. I think I already answered the question, but I'll show you. So here's somebody that paid with a credit card. And they paid an individual contribution of $100. See, you want to book it at the total because that's how much they get to write off on their taxes. We'll go ahead and save it. Then you have to check your bank. And to see when the credit card got deposited you tell QuickBooks by going to the record deposit window. You check off which ones. There was only one here that got deposited because sometimes they batched them. You click OK. And then you put in the merchant fee here, right here. And we'll put a minus whatever it is, $3.97 or something like that. So with that, I'm going to go ahead and talk about expenses for a little bit. Expenses don't take near as long. It will only take about 10 minutes or so. And then we'll end with restricted grants, and then we'll do some questions. So when it comes to entering your bills, and let me go ahead and go to a different data file. Hey Becky. Becky? Yes, Greg. How are you doing, Becky? I'm good. We have tons and tons of questions, so we've got a lot more to cover. Yeah, restricted grants, auto allocating funds, in-kind grants, or in-kind donations. Where you've created those cool donation letters, people really want to know how to get those templates. So any of that. We can cover all of those questions. Actually, this is going to sound like a big sales pitch, but all of those are in the Beyond the Essentials training product. In-kind contributions, how to create the thank you letter, and auto allocating expenses that are indirect between program admin and fundraising. But anyway, let's just keep going here for a little bit, and I'm going to add more questions for you guys because here comes expenses. All right, so what we're going to do is there are two ways to deal with your expenses in QuickBooks. And I'm not talking about payroll. I'm talking about all the other expenses that you have. When people get bills in, what some people do is they click the Enter Bills button right here, and they enter the bill. Then when it comes time to pay it, they click Pay Bills right here. Who's doing that? If you do the Enter Bills Pay Bills thing, chat us up and let us know that you do it. I assume a lot of people do. Becky, you're getting the answers. Who does that? I am. We have lots of yeses, lots of I do. I bet, judging from my experience, I would guess it's probably less than 20% of the whole people that are listening to the webinar do this. Usually people don't, but congratulations to those of you that do. That's what I want everybody to do for one thing, QuickBooks contract your payables. For another thing, you can get a financial statement that includes your outstanding bills. If you're not entering your bills ahead of time, and you're just basically doing the right checks thing, that's the other possibility. People don't enter the bills when they come in, and then when they pay it, they just click Right Checks. If you're doing that, you're not really using the Payables portion of the program. You might print out a P&L, and it looks like your nonprofits doing great. Meanwhile, you've got $20,000 of bills in the drawer nobody knows about. I mean, maybe you're trying to hide them from the board. I don't know. Please enter your bills. It's not hard. It's just as easily done as writing a check. Account, amount, memo, customer billable class. Now I'm going to open up a bill so that you can see it's the same field. Account, amount, memo, customer billable class. So it's all the same, not a big deal at all. And it's not like you've got to enter the bills that you have already paid. What I want you to do is when you're done with a webinar, chill out for a little bit, have a drink, and soon tomorrow, enter your outstanding bills. Get the folder out of the drawer, enter the bills. So I'm going to enter a bill to the Dallas Convention Center, but the date, reference number. What's this number mean? Anybody know what this reference number means? How do you know what to put here? Anybody know? I'm waiting for answers. Invoice number? That's the number on the invoice. Congratulations. That's the number on the bill. And what's beautiful about this is this will print in the voucher portion of the check if you print your checks out of QuickBooks so the vendor knows what bill you're paying. The other thing is if you ever enter another bill to Dallas Convention Center with the same reference number, QuickBooks is going to go, hey, duplicate bill, duplicate bill, keeps you from entering and paying the same bill twice. Those of us that don't do the interbills pay bills thing, you don't get that. Then we'll put it to an expense account. Now this is an example of a bill that's really easily broken out between program, admin, and fundraising. I can just put this whole thing to the synergy conference. It doesn't really need to be broken out at all. But another bill, I'll go ahead and enter another bill since somebody asked me about this for a utility bill. Like in Atlanta it's called Georgia Power. That's where I am. I'm in Atlanta. Georgia Power. And by the way, David who's on the back end is in Kauai right now in Hawaii. And I did see somebody who's here on the seminar from Hawaii. So maybe you guys can catch up with each other or something. I want to go to Kauai. But anyway, so this is something that would be split. So what we've got here is the whole bill should not go to admin. So what you do for this, I really do this, you get out, walk around your office with a tape measure and figure out which space is program-based versus admin-based. And if you have a program director that's in an office, that office is program. You want to push as much as possible into program. And then the rest of it, electricity, we'll say, let's see, we'll say the total bill here is 300. But we'll say that 80% of it, so I'll go 300 times 0.8 or 80% based on square footage, we think goes to the guidance center and then the rest of it which is $60 or 20% is going to go to admin. So let's go ahead and put a reference number here as well. And then I'll go ahead and save this. Now where are these bills? They are in reports, vendors and payables, unpaid bills detail. I'm going to go ahead and click this. This gives me a list of all of my outstanding bills. Here's the one for Dallas Convention Center and here is where's the one for Georgia Power. There's the one for Georgia Power. So when it comes time to pay the bills, what QuickBooks tells you to do in the homepage here, after you enter bills, you're supposed to click over to pay bills when it's time to pay them. Some people make the mistake of if they got to get a check out of the system, even though there's a bill for it, they go ahead and click right checks. That's wrong. If you do that, the bill will remain outstanding. It won't know that the bill's been paid plus you've probably doubled your expenses because you entered the electricity expense once when you entered the bill and then you entered it again when you wrote the check to pay for it. So instead, what you're supposed to do is click the pay bills button. And what that does is it will pay the bill and create a check for you that you can either print or hand write. So I'm going to click pay bills. Now you see how much money is in the bank account. This is kind of cool. This is where you pick the bank account you're paying out of. There's $29,000. When I check Dallas Convention Center, keep your eyeballs right down there where it says $29,533. Notice how it went down to $9,533? So you can see how much money you have left to play with. I'll go ahead and pay the Georgia Power Bill. Now we're at $92,333. Here is two bills from the same vendor, two East Catering. If I check both of them off at the same time, how many checks are coming out of the printer if you print your checks out? If you check off two bills to the same vendor from this screen, how many checks are coming out? Anybody know? Y'all let me know. I'll take it. Becky, lots of ones coming up in the chat box. Just one. That's right. It assumes you want to save the checks. If you don't like that, then what you can do is simply check one of them. Nothing really happens until you click pay selected bills anyway. So check one, click pay selected bills, it'll create the check, then check the other one. Go back in and check the other one. So I'm going to check this last one here for $44,000. Anybody see a problem here? I'll just tell you big problem, negative money. Well that's because it assumes every time I check off a bill that I want to pay it in full. Well that'd be nice and fantasy land, but sometimes we can't pay things off in full. So what I'm going to do is I can just highlight this amount to pay and lower it. I'll just make it $4,000. There it is. Now I've got money left in the bank, something tiny, $15.99, but at least it's enough to, I don't know, go get a nice meal and then quit the nonprofit because we have no money left. So that's basically how to pay bills. Now if you want to print your checks out of ClickBooks, you mark this to be printed, and you click pay selected bills, and then you order these checks. Now we're going to click print checks, and here's our checks waiting to print. So you make sure this is the right check number in the printer. You order these checks. You can order them from Intuit by pushing this button. You can order it somewhere else cheaper. You can go for it. And then I'm going to click OK. And then it will print three styles. The wallet, which almost no one uses. The standard which some people use because it's three checks to a page, but most people honestly, they use the voucher. The voucher is because it's an 8.5 x 11 sheet of paper. The top third is the check. The middle third is a voucher. It has those reference numbers I was telling you on it and you put it in an envelope and send it to your vendor. And then the last part, this is perforated. You can tear it off and staple it to your copy of the bill and put it in your vendor file. It's nice and anal retentive, and everybody loves it. Now if you do not – sorry, just to interrupt you, a lot of folks are asking, what do you do with a monthly bill like your mortgage payment or your rent? And I know you mentioned the electric bill, but folks are confused about how to manage that particularly. The rent? Well, the rent would be split too between program management and fundraising based on percentages. The mortgage, you know, mortgages go against the loan. The only portion that gets expensed of a mortgage payment is interest. And interest on a loan probably goes to admin. I don't think you can make that go to program or fundraising. I hope that answered the question. I don't know. But let's keep going because there's just a couple more things I've got to cover here. If you do not want to print your checks out of QuickBooks, can you still do the inner bills, pay bills thing? Absolutely. I'm going to click pay bills. I'm going to check off the bills that I want to pay. And let's see, I'll pay these. But instead of clicking to be printed, I simply click a signed check number. I'm going to click pay selected bills. And then what they're assuming is that you have the checkbook next to the computer so that when you hand write the check, you're putting the check number there. Now, if however you want to pay the bill, and listen very carefully, you've entered the bill, but two weeks later when you pay it, you want to pay it online, you do this exact same thing. You just click online in the check number field. Then it doesn't really create a check. It's just creating a transaction that on the register will say online. So that's basically the inner bills, pay bills thing. So I'm going to end with this one thing. I want everybody to do the inner bills and pay bills thing, because then you'll be able to figure out what your outstanding bills are right from QuickBooks. However, if somebody walks into your office, they repair the copier and they want money right then, there's no sense in entering a bill and then two seconds later paying it. The only time I really want you entering bills is if there's a delay in the time that you pay it. You get in it on Tuesday, you're not going to pay it for a couple weeks, then you enter the bill. If somebody wants money right away and as soon as you find out about it, then you pay them. That's when I'm okay with you doing the right check thing. Another example would be if somebody takes a check out of your drawer, the ED, and runs off and buys something and they give you the receipt and they say, look, I used check 1005 to buy something from Claudia Duvall. You go ahead and enter it in the right check window. No need to enter a bill if it's already been paid. There's just if there's a delay of payment. Many of you have debit card transactions. You have a debit card that you use to buy stuff with. If you will notice there's no icon anywhere in QuickBooks that says debit card. So the way to enter it is you use the right check window. You don't mark it to be printed. And in the check number field, you simply type debit. And that's how you enter debit card transactions. And you can still point them to accounts and you can still point them to classes and you can still split them. All right, so I've got the one more thing I wanted to cover, Becky, is restricted grants. And this is completely my fault. I will take responsibility for it. It feels like if I cover restricted grants we'll have almost no time to do live questions. So restricted grants is going to take me about 10 minutes. We have a lot of folks asking about restricted grants and in kind donations in particular. So if it's possible we can do those and maybe we can stay on a little bit longer. And we'll keep going away with the questions on the back end too, but I think that it's important that we try and get those two done. Okay, the restricted grants now I'm going to change to a different data file here. I'll actually, to make it quicker, let's see. All right, so a restricted grant is a grant that you've received that's restricted in terms of how it can be spent. And what's most important about a restricted grant is being able to give a report to the funder telling them how the dollars were spent. So what I'm looking to give you is basically a profit and loss for an individual grant. So as I had said before, and actually this isn't going to take very long Becky, when you enter a transaction, either a check or a bill, anything that you pay, and I've said this before, if it's to be paid for out of a grant you put that in the customer job field. So the first step in the process of using QuickBooks to track restricted grants is to put your grantors into the customer list. And when I say put grantors in the customer list, I want you to put a separate customer or sub-customer, QuickBooks calls and jobs, for each grant. You see how we have from Help for You grants, we get a grant from them every year. I need a separate job underneath the customer for each one of the grant years so that I can isolate the expenses for a particular grant. So once you put that in the customer list, and we already kind of saw how to put things in the customer list, then it becomes fairly easy. When you're entering expenses, you put the expense here, you put the program here, and you put the class here. So what that means is that, well let me just put it this way, every time you enter a check or a bill or a credit card, as a matter of fact, let's go to a bill now so that you can see it on a bill. I'll go backwards here, see if we can find something. Here's rent for the Synergy Conference. So let's say this was paid for out of a grant. So I would put it there. And then that way it knows what grant it was paid out of. Now sometimes it will only pay for a portion of it. So this is where again you would use your kind of allocation thing. So we would say maybe it will pay for 2,000 of it. So I'll say 2,000 of it comes out of the grant, and the other 980 doesn't, but it's still for the Synergy Conference. So let's take a look at this. What basically this is saying is that every time I enter an expense, I always have to put an account so it will appear on the P&L. I always have to put it to a program, but if it's not paid for out of a grant, I can leave this blank. Now let me give you a little trick. A lot of people, if you tell them, you know what? You always have to put something here. You always have to put something here, but you only have to put something here if it's paid for out of a grant. People will say, I don't have to put something here. I'm not going to worry about it. And they'll leave it blank, and then nothing will be pointed to grants until the end of the grant period, and then you're stuck trying to figure out how you spent the money. So what some people do is they create a make-believe customer called unfunded, and then anything that's not coming out of a grant you put to the unfunded customer. Then you can basically tell whoever's doing your entering of transactions always put something here as well. So then the benefit of this is I'm going to go to reports, I'm going to go to company and financial, and I'm going to do, instead of a profit and loss by class, I'm going to do a profit and loss by customer. Now QuickBooks calls it a profit and loss by job. The reason why they do that is because 25 years ago or whatever when they made up QuickBooks for some reason they were thinking of construction contractors and they think of jobs in that world. But anyway, this is customer. So you're going to get a P&L, but it's going to give you a P&L for every single person in your customer list. Like here's a donor that made a donation at $675. That's not a restricted grant, but yet I'm getting a P&L for it. Now eventually you'll find where your restricted grants are. Let's see. Here's the Villa Foundation over here. You see how it has some expenses in it? They've been pointed to it. But what you can do is you can basically filter this report to only include your restricted grants. So to do that let me show you what I mean. I'm going to go to customize, and I'm going to go to filters. Now filters works the opposite of the way you would think it would work. You would think when you're trying to filter things out you would tell it what to filter out, but it works the opposite. You tell it what to keep. So what you can do is you can go to the name filter, and you can click on this and you can say, please give me multiple names. And then you can pick and choose which ones are your restricted grants. And it was going to be these two, and it's going to be this one, and it's going to be the Villa Foundation. Now there's a better way to do this. Rather than having to click it each time, there's another filter called, and I'm kind of doing this for the more advanced people, customer type. And what you can do is you can filter by customer type. So what I've done is I've created, and I'm going to go back to my customer list, I've created a field or a type. It's under additional info, customer type. We all have this in the desktop version, and you can create your own types. I've created one called a restricted grant. So then anybody that's a restricted grant, I make that the customer type. So I did it for the David Webb Foundation. If I scroll down to where the Villa Foundation is, I did it there as well. There it is, restricted grant. So now all I've got to do is I've got to go to Customize, Filters, and this time I'm going to filter by customer type instead of name. And I'm going to say, just give me restricted grants. And then I'm going to click OK. And now I've got a P&L for my restricted grants. Now I know a lot of you are saying, this is just for this fiscal year. What if my grant bleeds between years? Fine. You know what you should do? You should make it all dates. Look at the Villa Foundation. This is a two-year grant. See this just says 70? When I click all, you see how it moved to 120? So it gives me the total for my restricted grants. And this is a report that I would memorize. You can memorize this report. I'll go ahead and memorize it. And I'll call it restricted grants. And then any time I want to pull it up, I just go to Reports, Memorized Reports, and there's restricted grants. You pop it up, and there it is. So what I want to do now, Becky, is it's 327. And I realize that I've probably generated a million questions. So I want to stay on the line. But let me do a couple of quick things before we start taking the questions. And I do realize that I didn't do the unkind, and I'll do that in a moment. I just wanted to end to make sure that somebody that had to leave could leave. So what I want to do is I want to point out one main thing. And that is our little coupon because we've got this kind of crazy sale thing going on for the next 48 hours. So let me pop this up on the screen. All right, so here's what the deal is. Last week, if you were with us last week, and I know a lot of you were, we gave away tech support for $99. It's normally $2.99. We gave it away for $99 for a year. We could only do that once. We've got a bunch of people that signed up, and I want to be able to serve everybody. So it's $1.99 for the year. The big thing I want to point out is many of the questions that we've gotten so far are restricted grants. Somebody asked about pledges, in-kind contributions, how to get the donor thank you letters. All of that stuff is in a product called Beyond the Essentials. It's a training DVD that comes with its own handbook. It's normally $2.29, and I'm going to give it away for $99. Now both this, Beyond the Essentials for $99, and this tech support where you can call me for a year. I can even dial in for $1.99. I'm only offering this for 48 hours. So it ends Saturday night at midnight, West Coast time. But these are the codes that you use, and you simply go to quickbooksmadeeasy.com and sign up there, and this is where the codes are. The code is TS48Beyond1, and you'll get a $2.29 product for $99, and then TS100 off if you want to get the tech support. All right, so that's the main thing I wanted to point out. What else do we need to do, Becky? Do you want me to — Becky, really quickly, I do want to show where folks can get the Intuit donation. So for folks who would like to upgrade or don't have the latest version or don't have any version of QuickBooks, hopefully you do if you're on this webinar. But if you need to upgrade, you can find it at techsoup.org. I showed this slide earlier. We have available the one-user license, the three-user license for Premiere, and both of those are the desktop installed, and QuickBooks for Mac, and QuickBooks online one-year subscription, which is currently out of stock, the online version. But we're hoping that it will be back in soon. If you're on TechSoup's homepage, you can browse by donor or provider, which you see right here, and then click on Intuit, which is the company that makes it. It's not listed under QuickBooks. But you can see down here, QuickBooks made easy is listed so you can get to the Essentials training, which is different from beyond the Essentials that Greg just gave the coupon code for. If you're really starting up fresh, QuickBooks made easy Essentials, DVD training is available discounted through TechSoup directly, and then QuickBooks made easy beyond the Essentials. Your best bet is to go with that coupon code within the next 48 hours that Greg just shared. And then you can look at the different products available, and you can see the details and the prices, the admin fees. Additionally, we have all of these resources. So if you're using an older version, like 2012, 2013, 2014, we also have 2015. We have training materials and resources on how to set up and configure your QuickBooks for use in a nonprofit. So we go through a lot of this in blog posts and articles and in webinars that you can find as well. Is there anything else that you wanted to cover really quickly, or can we go ahead and get into a move on the topic? Yeah, let's go ahead and do some questions. The biggest questions that we're getting are really about in-kind grants and generating board reports because we didn't have time to get to both of those topics today. But is there something quick that we can say about both of those or some references we can give people to? That would be great. Yeah, of course we can. Okay, so let me, in-kind contributions. Now it really would take about 20 minutes to teach the full thing. But let me just tell you, an in-kind contribution is a gift of something other than money. It's going to be either goods or services that have been donated to your organization. I have an organization that's a battered women's shelter. And they get clothes donated all the time. So how do you enter in-kind contributions? Well, the first step in the process, is you do need to enter an income account called in-kind contributions. So that's pretty easy. I'll go ahead and create the income account. And I'll just call it in-kind gifts. And you only need one account. The next thing you need to do, the next thing you've got to do, well actually you're pretty much finished. Now you're ready to enter transactions. So the inner transactions, you're not going to like this. But the best way to do this is by doing a journal entry. So I'm going to walk you through how to do a journal entry to enter your in-kind gifts. So I'm going to go to Company, and I'm going to go to Make General Journal Entry. So when you click it, the computer closes. And now I've got to open up QuickBooks again. Sorry about this. When we're pressed for time, that's the last thing that you want to have happen. We'll see. This is what makes the webinar so cool because it's like real life, right? Your data file probably fails like that. Nobody's laughing, but anyway, nobody can hear me. I feel like I'm talking to myself. I feel like a crazy person. We're all here listening. You're a crazy person. And now it closes. We love you're a crazy person. All right, well thank you. I appreciate that. So this is really frustrating. So what we do just to tell you, maybe I'll just open up a different data file and see if it'll be nicer to me, is you credit. When you might have made an income account go up, you credit it, and then you debit whatever the expense account is that you would have entered had you written a check for it. So let me just open up a new account here because it didn't take in kind of gifts. So I'm going to go under company, you slow down here, and I'm going to click Make General Journal Entry. Okay, the Lord does not want me to show you that. It doesn't love us today. You do it in journal entries, so that's good to know. You do it in journal entries by crediting the income account and donating. I can't just slightly cover something. I always have to cover all of it. But that's why it's good to have the products because we have time to go into this stuff. Now the other thing I know that people said they wanted to know about was year-end board reports. So basically there are two main reports that you want to give your board. Now I know that the other committees may want other things, but the two main reports that you want to give are one of them is a balance sheet in QuickBooks and the other one is a P&L compared to budget. So what I'll do is I'll just pop up both of those so that you can see. Reports, company and financial, here's a balance sheet right there. And then reports, budgets and forecasts. Of course, you will have had to have entered your budget in already, but we looked at that last week. Budget versus actual. You pick the budget you want to compare to the time period. Now the first time you look at this thing, it's going to be kind of messy because it's going to give you the actual and the budget and the variance for every single month. So that's four columns for July, four columns for August. In this example, and we covered this last week, we put our entire budget in the first month. And so you'll notice there's no budget numbers in any of the other months because we put it all in the first month. And this is just a lot of columns that nobody's going to want to read anyway. So you see where it says show columns right here and it's under month. Change it and make it total only. And then you have the actuals, the budgets, and the variances. So my point for the board, this is a quick and dirty, is you give them this and you give them that. Let's do some more questions. Great. Yeah, we've got a lot of them. Like we have some folks asking about if you have someone who's paying regular dues, tuition, or is paying part toward a pledge. How do you manage that with entering those payments in? Yes. So I didn't cover this. It's in the beyond the essentials product. But if you have somebody that's pledged money and then they're going to pay you later, or maybe you build somebody for tuition and they're going to pay you, you want to use the invoice feature in QuickBooks. Invoices are just like sales receipts. They use those items that we talked about earlier. So we'll say Chad and Maureen Brown, they made a pledge. Actually we'll say that it was membership dues that they're owed, and we build the membership dues. It's $125. We save and close. We can email them the invoice. Then all of your receivables remain outstanding in this open invoices report right here. And here's our little $125 right there. And then when it comes time to pay it, this is interesting. When you get money in that's against something that you've entered an invoice for, you do not go to the sales receipt. Instead you go to the receive payments window. So you click that, and I'm trying to remember what the name of that person was. Open invoices, Chad and Maureen Brown. So you go to the receive payments window, and this is where you receive this payment because it's against an invoice. You put information about the money that you received at the top half of the window, and then down at the bottom you apply it to the invoice by putting it next to the invoice right there. It throws it into undeposited funds, and then you deposit it into the bank like normal. So just to kind of make sure that you understand, those of you that are invoicing people, sometimes you'll get money in, and it will be against an invoice. If that's the case, you click the receive payments button right there. If however you get money in that's not against an invoice, you just get a donation in the mail or a fee or something, that's when you go to the sales receipt. Next question. We had a lot of people when you were talking about paying bills asking about how to do it when you pay bills online using a credit card. So instead of clicking pay bills and generating a check, they're saying they pay their bills with a credit card. Can they use that feature still? Yes. If you pay the bills with a credit card, what you need to do is go into the chart of the accounts list. I don't know if you've done this or not, but you should. If you go to new, one of the account types is for credit card. So you click credit card. So first you have to create the card. So we'll call it Amex. And then I put the last four digits of the card number here. And then this becomes the account that all credit card charges go to right there. And you can either enter a charge manually if there's no bill for it by just going into enter credit card charges. This is if there would be no bill for it. I charged AT&T. There wasn't a bill for it. So you kind of enter the charges kind of like the equivalent of entering a check, but you paid for it with a credit card. And we'll put this to telephone, and we'll put it to admin. Let me pull this up. So now you can see the credit card is up to $300. But if you want to enter a bill and then pay it with a credit card, you click here. This is really cool. Check this. And you see under payment method down here, this is where the key is right down here. I've never actually taught this on a webinar before. Do credit card. Then what it does is it changes it from paying it out of the bank to paying it out of the credit card. And then you click pay selected bill. Now then when you go to actually pay the credit card, is there any reconciling you need to do between that? You don't have to, but you can if you want to. So let me go here to. So now the credit card is here. So if I double click on this thing, you can reconcile your credit card before you pay it. And that would be ideally what you would do. You would enter the charges throughout the month. It would increase that credit card account. And then when it's time to pay it, you would simply reconcile. And after you reconcile, there's an option that allows you to pay it. If you don't want to reconcile it, because a lot of people don't need to reconcile because they haven't entered the charges to begin with. The charges, they didn't even enter until they got the bill. So there's nothing to really reconcile against. Then what you do, let me go back here to the, well, I went to the wrong account this time. Man, I am having all kinds of trouble today. What you can do if you don't want to reconcile is when you go to pay the bill, you simply write a check. And instead of pointing it to the expenses, you've already entered the expenses, you just point it against the bill. And point it against the credit card account, and it makes the account go back down again. Boy, I'm really dissatisfied with this. I feel like I didn't answer this well, but I'm feeling the pressure of time. Where are we with time? What's it looking like? We are pretty much way over time, but we've done a lot of answering questions. So I know that folks have a lot in the queue, but I want to go ahead and wrap us up because we are already 13 minutes over our promised time and try to be respectful of everyone's time. So we've put those coupon codes back up on the site. I also want to point you to this slide here that points you to where to purchase. Oh, the other one didn't have your newsletter sign up. That's the reason I wanted to jump over to it. I didn't sign up. We want to make sure that you can sign up for the newsletter, and I'm actually not able to enter that poll again. So we can't get people to opt in here, so I chatted it out to folks too so they can click on that and sign up for your newsletter. Sorry about that, but we're so glad you were able to stick with us. Go ahead and let us know one thing that we did today that you're going to take away and try to implement or work to improve with your own QuickBooks. We're really happy you were able to join in for today's webinar. We know we didn't get to cover everything as in-depth as we'd like, but we hope that you'll reference these other resources that will make available to you as well in order to improve how your organization uses this tool. Again, look for the links to upgrade your QuickBooks if you need a new version or to get the QuickBooks Essentials or beyond the Essentials directly through QuickBooks Made Easy. Also please join us for our upcoming webinars. Next week we'll be covering Adobe Photoshop for Advanced Beginners. Then we'll be talking mostly to libraries about digital literacy training tutorials and how to do training for your digital literacy programs. Then we'll have a tour for any of you who are newer to TechSoup or maybe have an account that you haven't used much. We want to make sure that you know how to use our site and access all of those donations and additional resources. Then on March 31st we'll be covering Excel for Beginners. We know these links are not clickable, but we will send the link to where you can find them in our follow-up email. So we hope that you'll watch for that in the next couple of days. Anything we went through too quickly, watch for that email. It will have a link to the Full Recording Archive, all the slides on SlideShare, and you'll be able to watch it again at your convenience. Thank you so much Greg. I really appreciate it. I want to say one more thing. I just want to apologize to you guys. This ran too long, and I am sorry about not being able to get to all of these questions. We have to rethink about we need to either have this longer or maybe break it up into sessions like we've done different sections in the past. But in the end… I'm sure people would be thrilled about having three of these instead of just two of them. But I can answer. I will tell you that this Beyond the Essentials product will answer the majority of those questions. It's only $99. And then if you want to get the tech support with me, it's only $199. But again, it's only good until Saturday at midnight. So I just wanted you to see the coupons one more time to make sure that you're riding with them. I don't know if we're going to chat them out or not, but to those of you… Yes, I chat them out as well. So keep an eye out for them there too. And those of you that have already called me on the tech support, it's been cool, it's been fun, and I look forward to more questions from people. And I do answer questions at night and on the weekends. He's not lying. But we are so glad that you are all able to join us. Thank you so much, Greg, really. Thank you to Karen on the back end, and Marga, and David, and Allison, and Susan for all working hard to answer nearly 300 questions answered on the back end while you were presenting, Greg. So even though we couldn't get to all of the questions, I hope we got to many of yours today. And we really appreciate you participating so much throughout the webinar. Lastly, thank you to our webinar sponsor, ReadyTalk, because they provide the use of this webinar platform so we can present these to you on a regular basis. Again, please join us for our upcoming webinars and complete that post-event survey when you log out to let us know how we can continue to improve these programs. Thanks so much, everyone, and have a great day. Bye-bye.