 Welcome to Choose Your QuickBooks Adventure with QuickBooks 2015. My name is Becky Wiegand and I'm the Webinar Program Manager here at TechSoup and I'll be your host for today's event. I've been with TechSoup for 6 years and I have been in the position of trying to pick software that works for my organization without any IT help. And I use TechSoup as that resource when I was doing that myself. So I'm happy to be helping you access experts and resources today. Also joining us as our key presenter is Greg S. Bosson who is a practicing CPA and Advanced Certified QuickBooks Pro Advisor with a full service accounting firm located in Atlanta, Georgia. He is also the founder and CEO of our donor partner QuickBooks Made Easy. Since 2000, Greg has been teaching live QuickBooks seminars around the country and he's also been doing these great webinars with us. So we're thrilled to have him join us today. Looking at the agenda, I'll do a really quick introduction to TechSoup for those of you who don't know who we are. I'll quickly go over the results of what you registered. Upon registration you were asked to pick which topics were most important to you to cover today. That's why we are calling this a Choose Your Own Adventure because we really want to cover the topics that are most pressing for you. And so we'll spend the first chunk of time today covering the most popularly requested topics from that registration. And then we'll walk through some of those sections in the live walkthrough where Greg will be sharing his desktop. And he'll show us how to do some of those things that are listed on the screen. But then we're going to open it up and have 40 minutes for just answering your questions whether they be advanced or brand new basic level questions. So we're going to start with the most popular items, but we do want to make sure that everybody is on the same page. And so I'll cover those in just a moment and we will get started with the meat of the program. Before we do that though, TechSoup is a 501c3 nonprofit. We're working towards a day when every nonprofit, library, foundation, and charity on the planet has the access to technology knowledge and resources to operate at their full potential. We do this by offering events like this, both in person and online. We also have served more than 200,000 charitable organizations with donations of technology software, hardware, and services from companies like Symantec, Microsoft, and Adobe, and many others since 1987 serving more than 200,000 organizations in 60 countries around the world. You can find all of these things at TechSoup.org. So that's just a little bit about what we do. And so looking at the results of the survey, I don't have them up on the screen because I was wanting to make sure I had the most recent data from people who may have registered at the last minute as well. And the number one most popular thing that was requested with 58 votes was covered as highlights of QuickBooks 2015. So people want to know what's new, what's different. The second item was entering budgets. The third item was basic setup of accounts and programs. And the fourth was setting up an org for the first time. Now third and fourth are actually pretty important to anybody who is just getting started. And so we do want to start a little bit with some of those first so that everybody who's on the call today, which right now we have around 135 people all joining on this call. We want to start with some of those quickly so that we make sure that the people who have just started out are on the same page with us when we talk about the highlights of QuickBooks 2015. So we're going to start with setting up a new data file for the first time, highlights of QuickBooks 2015, and then we'll talk about a basic setup of accounts and entering budgets. Those will kind of happen together. And so we'll be spending the first chunk of time doing that, and then we'll move on to the bigger Q&A where you can ask any question to your heart's desire, and we'll do our best to try and answer it in the time we have. Now today's webinar is a 90-minute event, so we have about 85 minutes left. And so with that I'm going to go ahead and introduce our presenter for today, Greg S. Bosson, who is a real expert on this topic, and hopefully can help you walk away with either knowing whether you want to move to QuickBooks if you're not already using it, or can help you get answers to the questions that are stymying you in your QuickBooks youth. And we will actually have a question in just a couple of minutes to ask you which version you're using that will help inform him as well. But before we do that, I want to have Greg come on and introduce himself, better than I can. Thank you, Becky. Thank you very much. And welcome to everybody. I don't know how many of you have heard me teach before, but here I am again. Now I do like to hear from you a lot, so I do want you guys to chat. So right now just go ahead and chat, say hey, so that I understand that everybody's here because I love having a lot of attention paid to me. So start chatting, just say hey so that we know that you know how to use the chat because this seminar is all about you. But anyway, as far as I'm concerned, well as far as I go, I am an Advanced Certified QuickBooks Pro Advisor, and I specialize in teaching nonprofit organizations. I am also the owner of QuickBooks Made Easy. And what QuickBooks Made Easy does is try and teach people how to use QuickBooks but we specialize in industry-specific training. And we do seminars all around the country. Actually, let me go to the next slide here. So what QuickBooks Made Easy does is we teach specifically for you guys, we teach nonprofits how to use QuickBooks and specifically for the things that you desire like tracking pledges, restrictor grants and stuff like that. We do this three ways. We have DVD training products. These are training products on DVD. They come with a handbook. We also sell tech support agreements where you can call and speak to me, and it will be me for an entire year. And I do take calls on the weekends and at night and I can dial into your software too. And then finally, we do live seminars across the country. And since you guys are from all over the country, I thought I would show you where we're going to be next. So actually next Tuesday we're going to be in Detroit, Michigan. And then the next day we're going to Chicago. And then the following week we're going to be in New Jersey in New Brunswick. And then on November the 6th that following Thursday we're going to be in Boston. And then I get a week off. And then after that we're in Austin, Texas in Tucson, Arizona. So there's the little web site address there where you can sign up for the classes. You can also sign up for tech support or get the products. And there's a little coupon that I'm going to give you at the end. I figure you should listen to me for a while to figure whether or not it's worth it. And then I'll give you a little coupon to give you discounts off the prices and I'll show you where to go to sign up. So let's go on to the poll here. This is one poll I'd like everybody to answer. And that is which version of QuickBooks are you using right now? And you might be using the nonprofit edition. That's what most people are using. So 15, 14, or 13 or older. That's right, 2015 already came out. Some of you, those are all desktop versions for the PC. There's also a few of you that might be having the Macintosh version. You might be using that. I'd like to know if you're using that any year. Or the online edition, those people have a program that looks a little bit different than the desktop. So I want to see who's using that. And then there may be somebody using Enterprise Solutions which is a very expensive program. I believe it's over $1,000. And then you may not have one yet. And that's helpful to see. So it looks like, now this is very interesting here. Becky, are you seeing this? So there are 14 people that don't have the program yet. So that's interesting. 9 people are on the online edition. And we should tell you that the best place to get QuickBooks is TechSoup. The nonprofit edition is available on TechSoup. And what is the pricing these days, Becky? Do you have that? Becky Gould Yep, well I do have it. And I have it later on in the program too so people can request a one user license for $45 or a three user license for $99. And that's of the latest QuickBooks 2015. And I believe there's also some special edition if you're not looking for the 2015 version and you would like to get the 2014 version for some reason, maybe compatibility or something like that with other programs. We do have the 2014 edition available I believe until – I can't give you an actual cutoff date. I think it's until it runs out frankly, which may be soon. So let's go ahead and share these results since most everybody voted. And it looks like around 40% are using 2013 or older versions. And just to make it clear, we are going to talk about this and show using QuickBooks 2015 today since the great majority of people were interested in seeing the highlights of what's new in QuickBooks 2015. But there are a lot of things that are very similar. Some of the look may be different, but feature-wise there are a lot of similarities. And so Greg will do his best where he can to show the way to do things. And hopefully it will be very similar to whatever you're looking at even if it doesn't look exactly the same. It will help answer the questions or at least guide you to the right areas. And then about 32% almost are using QuickBooks 2014. So a lot of you have already upgraded to the newest version before the one that just came out very recently. So that's great. Anything else that you want to highlight about this poll? No, no, except I do want to allay everybody's concerns. They've changed very, very little between 2014 and 2015. I'm going to go over the highlights of the things that are going to be relevant to nonprofits after I talk about how to set up a company. But please know that they've changed almost nothing. So do not be concerned. So this gives me a lot of insights. So it looks like we've got a lot of people that are using older versions, 40% or 2013 or older. So that gives me what I need. So I appreciate that. I'm going to move on here to the next slide. One more thing we always like to cover, especially for those of you that haven't bought QuickBooks yet, got to understand what QuickBooks is for. It's a financial software package. It's an accounting package, which means you can get a balance sheet and a profit and loss compared to budget out of it. You can also use it to track your invoices, your receivables, your pledges, donations. You can use it to track expenses and accounts payable. You can use it to print checks. It does do payroll. There's an add-on price for that. If you want to do payroll through QuickBooks, you don't have to. You can also process credit card payments through QuickBooks. That's again an optional add-on. The other thing I want you to know is that it will function as a light donor database. And it's actually pretty decent. And any questions related to that, I'll be more than glad to answer. You can get year-end donor reports. You can get year-end donor letters. You can even get a thank you letter out of QuickBooks. But again, it's a light donor database. It's not ultimately designed for that. But you can make it work for you. So for the smaller organizations that can't afford to get a donor database, QuickBooks is actually pretty good. So that is there. So the first thing I'm going to cover, and I know this wasn't number one, but there's a number of you that need to understand how to set up a new data file in QuickBooks. So I'm going to go ahead and share my screen now. We're going to get into this and talk about how to set up a new data file. So let me share my screen. And please let us know in the chat if for some reason it's moving too quickly, and it's not loading for you for some reason. Greg is going to be moving his mouth around the screen, and we'll try to do so slowly. But if things take a minute to load up, just let us know in the chat because Greg can't see what you're chatting into him while he's sharing his desktop. I can, and I can always jump on to let him know to slow down if we need to. Okay? Great. So I'm assuming that I'm sharing my screen now. Can everybody see? Is everybody able to see? Okay, great. All right. So the first thing that I'm going to teach is how to set up a new data file. So you'll purchase QuickBooks. You can get it through the Intuit website and download it. You can get it through a lot of the other stores that are out there that sell QuickBooks, Office Depot, Office Max, and you can download from there, or you can have them send you a disk that you can load manually. Most people download. After you download, you'll be in a sample file that will allow you to open up a sample file. And I encourage you to play around in that file so you get used to what the screens look like. When you're ready to set up your company, and you'll see they'll be pop-up windows that suggest doing that. But what you're going to do is you're going to take your mouth and go to the file then you up here at the top left, and you're going to click it and you'll get a drop-down. And then what do you think you'd pick to set up your company? Go ahead and chat me the answer. And Becky, you'll need to tell me which one of these would you pick? No one's chatting? No one's chatting yet. But Denda actually did make a comment to remind people that they can show the chat panel if they want to. So now lots of chat messages have started popping up saying new company. So people say, select new company. Yes, you click new company. And again, in the past, I've done this pretty quickly on these webinars, and I want to try and go slow to make sure everybody's at the same place. So then we've got a couple of options for setting up a new company. This is an advanced setup. I wouldn't do that. This is in other options if you want to convert a Quicken file into a QuickBooks file, or if you have some other accounting software package, you could click that one and it may convert it for you. It depends upon what the package is. But what I would suggest doing is just to push this Express Start, and it's going to give you just some basic information about your company that you fill out. And the goal is to just ask the very basic questions. So the first one is the company name. I'll press the Tab button. Now this is asking what industry you're in. Now let me just explain to you. The reason why they're asking this question is because they're going to give you a set of income and expense accounts for your chart of accounts depending upon what industry you're in. So you may feel like, oh, let me start typing. I am a membership association. And do you see how nothing's happening here? Because it can't find it in its predefined list. So rather than even worrying about typing in here, just click Help Me Choose. It's just going to make life easier. And then it will give you a list. And nonprofits will have one that says nonprofit right there. And I think there may be one for churches or religious organizations right there. And those are the only two that you'll be choosing from. So just choose that and we'll click OK. This is grayed out now, but you can kind of see where it's giving you some income and expense accounts that it's suggesting for you. I'll click OK. And now the next question says company type. So I'm going to click the drop-down list and it's going to ask basically what type of taxable entity is this. Now listen carefully. You will be tempted to push nonprofit. Don't do that, okay? And the reason why is the only reason why they want to know this is for people that are also doing their own taxes, so doing their own 990, and actually they're doing it in the software that Intuit makes, which is LASERT. So it's really just CPAs and tax preparers that have that software. If they pick this, then it will allow them to basically take the data file and merge the lines onto the tax software. You guys aren't doing that stuff, so please don't do that. It's a waste of time. All it would do is create this tax line assignment field that you're not going to know what the heck to do with. So just click Other or None. Just do that. Then they want your federal ID number here. And do you have employees? Now I'm a very honest person. Why do you suppose they're asking you if you have employees in the screen? Somebody chat me up with an answer. I want to see if y'all are paying attention. Sure. Well John actually mentioned, while we wait for people to come in with that, he mentioned that you can change your industry at a later time if you need to. So that's a helpful tip that people may want to know. Lots of people are now chiming in payroll, payroll W-2s versus 1099s, payroll, payroll. They want to know if you want payroll. And they want to know if you want payroll from them basically. Remember how I told you it was an extra fee? So even if you say no, but you might in the future, then you're going to start getting contact from them saying, hey, are you interested in getting payroll? So it's kind of for their data. So if you have a payroll service doing your payroll, then just go ahead and click no here. No need to click yes. All right, so I'm going to click no. Don't mean to badmouth QuickBooks. Their payroll service is incredible. We use it. So I'm just kind of throwing it out there. All right, and then we'll just put our little address here. Not a big deal. Let's see, Main Street, how innovative of me. All right, I'm usually more clever than that. Everybody lives on Main Street when we do things. Everybody does. Well, except the few people that live on Wall Street. All right, and then they want a phone number. That's interesting that that's required. I'm not sure why that is. All right, so now I'm going to create the company file. So now it's creating the company file. And what that company file is going to have, and it will open it up in a second, it's going to have some basic information in it. And the one thing that it's going to have that is helpful to you besides just your name, address, and phone number is it is going to have a set of income and expense accounts based on the industry that you chose. Now I would not necessarily suggest using those accounts. We're going to talk for a second about what I think your account should be, but it's real easy to inactivate accounts that you don't want, add accounts that you do, things like that. Now this next screen allows you to add things like your donors, members, or students. That's what they add, the people thing is. Products and services that you sell, that's for the few of you that are selling items, and then add bank accounts. But you can do this here, but you can also do it right in the program. You see where it says no data to enter right now, no problem. You can always enter later. So that's what I'm going to pick. I'm going to click Start Working. All right, now I know that that was really quick, but it really is that quick. They have this little quick start center with basically these are just some main things that you might want to do. And then they have some videos that you can look at, but I'm going to get rid of this quick start center as well. So that's basically how to set up your company. And I will stop for a second just to make the point that some people get really confused. They think that when you buy QuickBooks, the QuickBooks has your company in it, and you can really only have one company. And that's not really true. So I need you to understand that you know how in Microsoft Word you have the program Microsoft Word, then you have a lot of different documents. Well, QuickBooks is the same way. I'm going to go to File, and I'm going to click Open Company, and you're going to see all the different data files that I have. How many of you are running more than one company out of QuickBooks? Go ahead and say more than one or more or something like that. So I see how many people are running more than one. But look at all the different ones I have here. So we have some people saying 4, 5, more than one, more than one, 3, more than one. Some people say just one. So the thing about it is in Microsoft Word, when you open up Word, it opens up Word. It doesn't open up your last document. But in QuickBooks, you've got to go find the document. In QuickBooks, when you open up QuickBooks, if you just click the QuickBooks icon on your desktop, it's just going to open up QuickBooks and it's going to open up the last data file you were ever in. So if that's not the data file you want, and people that have more than one company file, they understand this. They've got to click File. They've got to click Open Company, and they pick the data file that they want. I'm going to go back to this data file over here. I'm going to click Open. And that's why I wish I could move this. Can I move this thing at the top? I don't know. I'll just do that. I'll get rid of it. This very top bar here is called the title bar. And it's telling you a couple of things. One thing it's telling you is what version of QuickBooks you're using. I'm using the nonprofit edition 2015. That's the one that you can get at TechSoup for, I think it was $45 for a single user license or $99 for a three user license. The single user license usually retails for $450. So I mean, it's a really good deal. And then the name of the company that you're in is over here. That's why they put the name on the left. So if you have more than one company, you know what company you're in. So after you're finished setting up your company, then you're going to want to start setting up your accounts. And you're going to want to start setting up your programs, and you may want to put in your donors, your vendors, or students. Let me stop for a second here before I go any further. Does anybody have any questions about what we've done so far? We did have a question that came in that just asked, why set up more than one company? Do people have more than one company? What does that mean? Yeah, it's people that have more than one organization. Sometimes you'll have a membership association that's a 501C6, but then they will have a charitable organization that is a separate entity. And they do that so that people can donate money to the charity and they can write that money off their taxes, and that's a 501C3. The 501C6, if you make contributions to it, they're not deductible. So they just have two organizations, one for the membership stuff and then one for their charitable stuff. You have a lot of nonprofits that actually have more than one organization. What else we got? We also had a question from Steve asks, should we still choose other from that drop-down list if we have a CPA doing our form for us? You definitely should choose other if you have a CPA doing the tax return for you because I can assure you that the CPA, we don't use that merge. You can ask them, but almost no one uses the merge feature, and plus they would have to be using LASERT. So you want to talk it over. And by the way, the gentleman that said that you can change it later, and this is why I wanted to point this out. I wonder if I've got this thing turned on in this data file. Let me see if I go to the chart of accounts list. Let me see if this is on. Okay, so there's no tax line assignment here. Let me go back to that other data file. I can click Previous Company. This is actually good because it will let you see how to get between data files. Let me open up that other data file. I'll just take a second here. So I'm going to go to the chart of accounts list and I'm going to show you why I didn't want you to check the company, the type of company. Okay. Oh, I checked other or none. I'm sorry. I forgot about that. All right, so let me go back over here. Company, My Company. So this is where you can go later on to edit the stuff that you entered in the EasyStep interview. I'll go to My Company, and then you'll get information about that you entered, but it's kind of weird. This little arrow right all the way over to the right side, it looks like a pencil. That's where the editing is. So if you click on this, it pops you up here, and under legal information, where did it go? It should be a place here. They're hiding things on you now. They're hiding it. Yeah, they move it every year. It's under report information. So I picked other or none. If you pick 990, then when you go back to your chart of accounts list, you're going to see this field that says Tax Line Mapping, and it's going to upset you because you don't know where to put this stuff. And I promise your accountant does. There's no need to worry about this. So that's why the gentleman, I think it was a gentleman, said, you know, you can change this later. So we go to company, and my company, and we click this thing over here, and just change it under report to other or none. And then it will delete that field so you won't see it anymore when you create accounts. So I'll just go back to the chart. So if you choose nonprofit initially, can you then change it later to other or none as well? Yes, that's what I was suggesting. It's the same process. Okay. And I just did it because I changed it to nonprofit, and then I just changed it back to other or none. So this disappeared. Okay. I just wanted to make sure that's what that was covering. Okay, thank you. Yeah, no, that's fine. That's fine. All right. So it's interesting. I think what I'm going to do is it just feels like we should go ahead and talk about the setup of what basic setup should be for your list. So I'm going to do that. It will take a few minutes, and then I'll go and do what's new in 2015, and then I'll do the budgets. That sounds great. Changing it up a little bit. But anyway, okay, so what I'm going to do, and I want to have a lot of time to answer your questions. So I'm not going to spend a whole lot of time on this, but I want to explain to you first of all what your chart of account should look like if you are a nonprofit. And I assume that you are, otherwise you wouldn't be on this call. So I'm going to open up another data file, and I'm going to open up a data file where some of the stuff has been set up incorrectly. So that's kind of the best way to show you the right way of doing stuff when it comes to setting up your accounts is to show you the wrong way. Now to set up your account list, you go to lists, and you go to chart of accounts. And that's like the most important list of all when you first set up a file. You need to make sure that your chart of accounts list is set up correctly. The little easy step interview is going to give you some income and expense accounts. If you don't care for them, and I'm going to show you what the right account should be, you can very quickly go in, and you can click on one. You can go to the bottom left-hand button, and you can make it inactive or delete it. Either one will hide it so it won't be used. You can edit it if you want to change the name. If you want to create a new account, this is where you go to create a new account. So I'll show you real quickly how to create a new account since there seems to be a lot of people that are new here. Because we created, when we did the easy step interview, it gave you your income and expense accounts, but we still need to create other accounts. For instance, your bank account. So I'll just show you how to create an account here. We click New. And when you go to create an account, the very first question that's going to ask you is what the type should be. And these types are fixed. You can't create your own types. And the type that you pick determines which financial statement it appears on. All accounting is basically entering transactions, and those transactions end up on two reports, either the profit and loss, or the balance sheet. Let me pull up the balance sheet. And that's all accounting is, entering transactions so they end up on these two reports. When I create an account, you've got to understand what the right type should be because the type determines which report these two appear on. So if I'm creating a bank account and I click Bank, where are bank accounts going to appear on the balance sheet or on the P&L? Chat me up and let me know. What have we got? Kathy responds Balance Sheet, Carol Balance Sheet, Balance Sheet, Balance Sheet, Balance Sheet. Perfect. Okay, where is Unanimous Support for Balance Sheet? So if I set up an expense, so if I make it the expense type, where is that going to appear? Balance sheet or P&L? People are weighing in mostly saying P&L, a couple of people said Balance Sheet, but maybe they were delayed from the first question. Expenses appear on the P&L. Yeah, we'll give them the benefit of the doubt. So anyway, to create, we'll just say a bank account. I'm going to click Bank, I'm going to click Continue, and then they want you to put the name of the bank account here. We'll just put Checking Account. Some people like to put the name of the bank here too. Okay. Now, you see all these other fields that are here? There's this field, there's that field, there's this field. Don't get into this thing where you feel like you have to put something on every field, otherwise you're going to freak out. Okay, this is QuickBooks Made Easy. You don't need to put anything here. Don't put your bank account number and your routing number here. Don't do that. All right? See, these are all optional. Okay? Don't do that. Now, if you're very first putting in a bank account, you do want to enter the opening balance. So you do want to push that, but you don't enter the opening balance for any of the other accounts except the bank account. So I'm going to click Enter, Opening Balance, and you want to put the bank statement balance here, not the checkbook balance. So if you're going to start using QuickBooks for the first time, you need to pick a date that you're going to start. So where are we now? We are in October. So let's say your year end begins, or your year begins in July, July 1. So what you want to do is you want to say, okay, I'm going to start July 1. So then you're going to put the bank statement June 30, 2014, and then you're going to put the actual bank balance on that bank statement. All right? Whoops. I did it backwards, didn't I? 0630. And then you put the balance as of that date, the statement balance, not the checkbook balance. Now, you might be wondering, well, wait a second, that's not going to be the right balance because there might be outstanding checks. So what you do is after you're done entering this opening balance that I'm actually done now, I can just click okay. What it's going to do is then it'll say that that's the balance as of June 30, but then you can go into QuickBooks and enter all of those outstanding transactions as of their original date, which is before that start date of June 30. It'll take the transactions before that date, and it'll add and subtract it to the correct bank statement balance there as of June 30. So you really will have the correct checkbook balance as of June 30, all right? So Greg, yes, go ahead. Sorry, Albana asked, so why not add the routing and checking account number? Is that just for your own security and privacy? You don't need to, so why bother? Yeah, for security purposes, I don't recommend doing that. Now if you do decide at a later point that you want to download transactions versus online banking, this isn't where you enter that information anyway. So I wouldn't put anything here. Gotcha. We also have a question just from before we move away from the screen. So from Rafe asks, our nonprofit uses PayPal to receive funds for conventions and branded merchandise donations. What type of account do we consider PayPal? Is it a bank? It is a bank. People, thank you for asking this because so many people do this wrong. What most people do is they have a PayPal account but they don't record any of the transactions in the PayPal account. When the money gets into the regular checking account by transfer, that's when they start entering the transactions. That's wrong. That's not when the transactions took place. So what you do is you go bank, continue, pay, pal. It's a bank account. You just can't walk into a brick and mortar place, but it's a bank account. The bank statements are hard to read. I'll give you that. But it's a bank account. So then I click save and close. And then what happens is whenever anybody makes a payment into PayPal, you record your income into the PayPal account. And whenever there's fees taken out, you enter the fees in the PayPal account. If you enter bills and pay bills out of PayPal, you can do that. But it's its own PayPal, own bank account. Then when it's time to take money out of PayPal and put it into the checking account, you click banking and you click transfer funds. And then you pick the PayPal account or the account you're taking the money out of and then the account you're putting the money into. And that's the place to go to anytime you're transferring funds between bank accounts. Notice how we don't say anything about the revenue or anything in PayPal because we already entered it because it was entered as if it was a regular bank account. Can I ask a couple of other quick banking questions that have come in? So Gabriella mentioned, how do we register a brokerage account? We've received a stock donation. Okay. So a brokerage account is an account like any other account. So I'm going to go to the bottom left hand button and I'm going to click new. Now I typically make a brokerage account an other current asset account. I'll click continue and then we'll call it, I don't know, MFG brokerage account. And then it becomes an account. When you get that donation of stock, the value on the date of the donation needs to be entered. And you can enter it right in the make deposit window. Okay. So you would make a deposit. I believe you can do it. Yep. Into the brokerage account. And the other side of it is a donation. So it would go to individual contributions, what have you, for the value on that day. Later on if you sell it, then you would need to do an entry to reduce this down to zero in whatever gain or loss is. You'd put that on the P&L. But that's how you would handle it. Is it the same for CDs? Yes. Yes, it would be the same for a certificate of deposit. Correct. Okay. We also have one other question on this. So Dender asks and says that their bank has just been taken over and it will roll over into a new name, new information mid-November. Should they start clean with the new company file? Oh gosh, no. It goes back 8 years with many non-active or not used. So they should keep it the same and just update the name. Just because the bank has been bought out and it's going to change names, there's no need to lose the history. So you would just edit the account, go to the bottom left hand button and click Edit, and then just change the name right here. Not a big deal. Now if the data file is really old and therefore kind of slow because it has a lot of transactions in it, you might want to consider going to File, Utilities, and Condensing. And what that does is you pick a date and it removes all the transactions before that date. It replaces them with summary journal entries. It helps your data file move a little bit faster. And also when you do that, if there's any unused customers or accounts, vendors that haven't been used in years, if you check this it will remove those from your list. It makes a backup before it does all this so you don't lose anything. But that may be something that you want to consider doing. All right, so let me… We do have some people asking about the Mac version. And if you know where some of these things live, like with PayPal for example, where you would put that in the Mac version. Is it the same and just looks a little different? Yeah, it would be the same. You would go to the chart of accounts list in the Mac version and everything would be the same. I don't think there's anything different in the Mac version about that. Let me go ahead and finish what I wanted to do because I want to make sure that we've got a full 40 minutes for questions. So if I haven't answered anything, just wait a few minutes and I'll get back to you. So the thing I wanted to say about the chart of accounts list is when you go to set up your chart of accounts list, I'm going to kind of break this discussion up into three groups. There's balance sheet accounts that you'll need to create. And then the income and expense accounts that they gave you, you'll need to kind of fix those a little bit and make them be unique for you. So as far as the balance sheet goes, you'll need an account for each one of your bank accounts. You may need a receivables account. It just depends upon whether you invoice customers. And if you want to track pledges through QuickBooks, then you'll need one of those. You'll need one for furniture and equipment. It's big enough. This company is big enough to where I broke out furniture versus office equipment. If you're a really small organization, you may just have one account called furniture and equipment. If you're really big, you may break it up like furniture, office equipment, versus theater equipment, versus building, versus land, versus vehicles, big categories. Liabilities, everyone who's listening to me is going to need to have an accounts payable account. Got to have that. But this account, remember when I told you when I set up a new company, it's going to automatically give you income and expense accounts. It's also going to automatically give you a payable account. It won't give you the other balance sheet accounts, but it will give you the payable accounts. You don't have to create that. Payroll, if you're using the QuickBooks Payroll service, QuickBooks gives you one account called Payroll Liabilities. I want you to create sub-accounts underneath it for the various types of Payroll Liabilities. And then point the payroll items, and if you don't know what they are, it's only for people that use the QuickBooks Payroll service to have these weird things called payroll items. But you'll need to point the payroll items to these liabilities. It makes finding and fixing problems easier later on. If you have any loans, we don't have any here. You'll want to create one for that. And that's really all you need to create for the balance sheet. The income statement, the P&L, as I said, when you open up your new company, you're already going to have accounts here. But let me just tell you the wrong way of doing this. We'll start with income accounts. You see this account here that says Restricted Grants? Don't do that. Do not have a special account just to track restricted grants. I'm going to show you how to track restricted grants. I don't have time to go through all of it, but there's another place to do that. So don't do that. The other thing is, you see how this person has created Green Truth Grant? United Fund Grant. They created a separate income account for each grant. Don't do that. There's another place to track that. When it comes to your income and expense accounts, the name of the game is the following. You'll want to keep it short. Because if you don't have very many income and expense accounts, then when you go to print out a budget compared to actual for the board, there won't be very many accounts, which means there won't be very many rows, which means you can fit the thing on one page. A P&L compared to budget for the overall board should not be more than one page. I'll give you a one and a half page, but that's it. If you have a lot of accounts, you're going to have a lot of pages. Nobody's going to read it. And you may like that. Maybe you don't want the board reading the financials. But if something goes wrong later on, let me tell you something. They're going to be blaming you because you didn't tell them. So you want to make this easy to read. So if there's another place to track what you need to track, I'll tell you to track it there. So when it comes to your income accounts, this is what I want. Let me hide those. One for individual contributions, one for corporate, one for foundation, one for government grants. Everyone on this call, you need those four accounts. And that's as detailed as I want you to get when it comes to your grants and contributions. Now if you have earned income that you earned for doing things, I just had a generic one called Program Fees. You might have one called Admission Fees or Ticket Sales. You might have one called Sponsorship Fees. Then Membership Do's, you might have one of those. I have a miscellaneous income. I'd like you to not use it as much as possible and then one for interest or investment income. That's it. Not a lot of income accounts. The expense accounts are the thing that people screw up the most. Now when it comes to expenses, let me just hide this for a second. Well, no, I won't. This organization is called Synergy Now. And the purpose of the organization is to basically get the country off of foreign oil and hopefully get it on environmentally friendly forms of energy, made right here in the USA, solar, wind, what have you. So that's what they do. Now every nonprofit has programs. And the programs are in service of that mission. This nonprofit has the Aware Campaign, the Synergy Conference, and the Guidance Center. These are the three programs. Do not, I'll say it again, do not set up accounts to track your programs. Do not do that in the chart of a counselor's thunder expenses. That makes it confusing. If I spent money on postage for the Synergy Conference, I don't know whether to point it to postage or to point it to the Synergy Conference. So it makes life confusing. Also, what is the most, what's the most expensive cost of running your organization? Y'all go ahead and chat me up and tell me, what's the most expensive thing? What's the biggest expense you have? Hey Becky, are they responding? Yep, we have salaries, personnel, payroll, employees. And what nine times, you all got it right. And what people do. Some people are saying other things like sheet music. So I imagine there are sometimes things that cost more, especially if they are all volunteer or don't have payroll. Yeah, they're all volunteer. But so most of the time though, like salaries, that's something that needs to be allocated to programs. And what people will do is they don't do that when they create these program accounts. So they put all their salaries to salaries right there. Then it makes it look like the person hasn't spent very much money on their programs. So don't do that. So when it comes to your chart of accounts, you want to make your expenses what I call the natural category, salaries, insurance, rent, postage. These things are generic to all businesses. I should be able to look at your chart of accounts list, look at your expenses, and not have a clue as to what your organization does. So you want to just have generic expenses and it's not like those are a right or wrong answer in terms of what level of detail you have. You see down here, I've broken out utilities into gas and water. You don't have to do that. You could just have one for utilities. The IRS doesn't care. The auditor doesn't care. It's just your board that would determine how detailed you want. The point is these need to be natural categories. So what are we going to use to track our programs? You guys chat me up and tell me. What are we using to track our programs? I'm waiting for the responses to start rolling in. Classes, classes, classes, classes. That's right. That's what we're going to use to track these classes. Good. And that's accept the new people I'm sure. But you guys are so lucky because a lot of us have been around the mulberry bush trying to figure out where to track our programs. Let me show you what you want to do. You want to turn on the class feature, edit, preferences. QuickBooks has all these preferences and there's so many of them. They're in the edit menu and there's so many of them that they're broken into categories on the left-hand side. I'm looking at the general preferences. Now I'm looking at the checking preferences. If I go to the accounting preferences and click on the company tab, you're going to see one that says use class tracking, check that box, and it will turn on the class feature. The next step is… Great. Can you show once again how you got to this page? Yeah. You go to edit, and then you go to preferences. Now if you're in the Macintosh version, I believe you go to the Apple and then go down to the preferences. I'll click preferences. And then we'll go over to company. And I need to go to the online edition too. The online, you don't have to turn this preference on. It's just turned on automatically for you as long as you get the plus version. So anybody who has the online edition, I think there were nine of you. You'll need to have the plus version in order to have classes. Anyway, there you go. Once you've turned on the preference, you go to edit, you click classes. This is what you want to do. You want to have, and to set up a class, just go to bottom left and button click new. But you want to have one for admin and one for fundraising. Oops, let me do that again. One for admin and one for fundraising. Everyone who's listening to me must have one for admin and one for fundraising. And then you want to have one for each one of your programs. And we have our three programs here. And I put them as subclasses underneath this parent program. That's the main. So for the new folks, Rick, can you just describe what classes are, how you use them? Classes are a way of, let me say it this way. So anytime you enter an expense, there's two things that you need to explain to QuickBooks about the expense if you're a nonprofit. One is the natural category, travel, supplies, rent. The other is whether it's a program expense, an admin expense, or a fundraising expense. That's called the function as opposed to the object. The object of the expense is the natural category. The function is what purpose is it serving? Is it helping a program? If so, which one? If it's not, then maybe it's just overhead. And if it's not that, then maybe it's for fundraising. Those are your three buckets. And then what happens is when you enter transactions, over here on the left-hand side you put what expense account it goes to. And then on the right-hand side you put what program it goes to, program, admin, or fundraising. And yes, you can take a specific expense or income either way, and you can split it up between program, admin, and fundraising. But the benefit of it is then you can get a P&L by class. Now this is going to blow your mind. When I click it, and I'll collapse it to make it a little bit prettier, you're going to get a column for each program. Then you're going to have one for admin, and you're going to have one for fundraising. So this is going to tell you, and what I did was all income that was earmarked for a particular program I put to that program, and all of the expenses for the program I put there too so you can see whether a program is paying for itself. So that's the main piece of the setup that I wanted to cover. I'm wanting to make sure that we have enough time, and we've got like 35 minutes left. So let me go ahead and finish the little piece I was going to do, and then we'll start taking questions. Is that cool? Because I just want to make sure. That sounds great. Yeah. All right. So that's the two main things, setting up your classes and setting up your accounts. Now the other thing that I wanted to cover is setting up a budget. To set up a budget you go to company, you go to planning and budgeting, and you go to set up budgets. Now the first time you go in here you'll get this window. It wants to know what year you want to create a budget for. Now when you very first set up your company in the Easy Step interview it's going to ask you what fiscal year you want to set up a budget for. I'm sorry, when you set up your company it's going to ask you what your fiscal year is. I said July to June. So that's why when it's asking what year I want to put a budget for it's giving me these half year things. So I'll do 19 and 20. You can do a budget for a P&L or a balance sheet. No one does a balance sheet. Everyone does a P&L. Then I click next. There are three different types of budgets in QuickBooks. One of them is if you want a budget by program you'll pick that one. One is if you want a budget by restricted grant you'd pick that one. But this is what most people use. It's this no additional criteria budget. It allows you to budget for your entire organization. So when I click it and I click finish here you get a screen where you put your budget. Now these are all of the income and expense accounts that came from your chart of accounts list. So if you go to enter a budget and there's not an account for it that means it's not in the chart of accounts list. Then you'll need to go to the chart of accounts list, add the account, then go back into the screen and then it will appear. And this is where you put your budget. You can either budget by month or if you budget by year you might want to put something in this annual total column but I can assure you you can click every second until the Cal comes home. You ain't getting anything in this column. You got to put the whole budget in the first month of your year. You put the whole budget in the first month of the year and then this column is just the total of the other 12 columns. So if you budget by year whole budget in the first month and then I'll show you a report, reports, budgets, budget overview and this report it will assume you want it by month. Go to the columns and make it total only. And then it will give you a budget that you can review. You can have the board vote on it. And then later on if you want to do a comparison to actual, see if I've got it in here, budgets to actual. And again it's going to give it to you by month. I'll take the total, make it total only and here's your actual and here's your budget and here's your variances. So let me show you the new changes. It's going to take about five minutes the changes in 2015 and then we'll open it up for questions for the rest of the time. And if we have to stay a few minutes late, we will. Go ahead. Sorry, just before you close out of the screen, we have a handful of people that are saying they don't know where to find this in the version they're using and they're all saying 2012 or 2012 and Mac. It's in the exact same place in 2012. You go to reports, you go to budgets and forecasts and then budget versus actual. So any time you want to report that's related to a budget, you've got to go to reports and go to budget and forecasts and that's where it will be. All right. Thank you for that. Okay. Let's go ahead and look at the highlights. Yes. Here's the changes in 2015. Like I said, this will take a second. When you change to 2015 and you open up the home page, you're going to see this screen. Now, this doesn't have very much information and I need to pick a different data file, but that is okay. Let me see if there's information in here. No, I need to go to a different data file. Well, in the interest of time, I won't worry about it. You'll have this insight screen. And basically what it's trying to do is to give you some charts for your income and for your expenses. It's not something that is really helpful for nonprofits and it's not something that if you've been using QuickBooks for a long time, you're used to even seeing. So what I do is you see the little home page thing that's right there? That's what we're used to seeing. And you can click on insights, but if you click on home page, it gets you back to the regular home page. So do that and then from now on, anytime you open it, you'll be back at the home page. I just wanted to let you know that because the insights, it's something pretty. It kind of looks like the same graph that people see who have the online edition and so that's why they have it popped up. To try to get people used to the online edition, they added a feature in the desktop that looks like the online edition. All right. The other thing is when you go to look at a report, you may have already noticed this. I'm just going to do a P&L. They've made it a little bit easier to read now. You see these little shaded areas? So the parents here that these are the account types. They're shaded so that it makes it just a little bit easier to read. They also have these grid lines here that are kind of faded out. So it just makes it a little bit easier to see things when you're trying to follow the lines over. So I think that's pretty cool. The next thing is you're going to see a new button on a report that's called comment on report right there. So what it is is let's say that you're looking at this P&L and you want to send it out to the board, you want to send it out to the treasurer. Rather than printing it to a file and attaching it to an email, now if you click comment on report, it opens up another copy of the report. But now do you see these little, it looks like Windows here, I don't know what they call these things Becky, where you can basically put comments about each line. So say you have a question about the rent. So I can click here and then a little place opens up where I can add a comment. Please send me a copy of the new lease. Then I'll click OK. And then I'll go up to individual contributions and I'll say, I got that big donation from Fred. So you have these comments and you click save, it saves the comments. Well actually when you click save, it saves the whole commented report. So basically this is like a new P&L that has comments on it. I'll click OK to save it. And then you can open up an additional report. I'm doing this on purpose. Here's a balance sheet. I'll go ahead and comment on this one. And receivables is a negative number. So that's something that I may want to explain to somebody. Joe paid early. Click save. And then you can print these things. You can email these commented reports immediately or rather if you have a bunch of them, I'll go ahead and click save. And then all of my commented reports get put in a certain place in QuickBooks. And to access them you can go to reports and you can go to process multiple reports. And when you do that, you'll get a list of all your memorized reports. If I go over to commented reports, I get a list of my two reports that I have comments on. And I can go ahead and select them. And I can either print or email directly through QuickBooks. I'm going to click email. And it will email the reports directly through QuickBooks. This is a sample file, so I can't send this one. But you'll email it directly through QuickBooks. And I think the only other thing I want to point out that is relevant, you can see how little there is for nonprofits in 2015. If you click on customers, there has been a notes section that's been around for a number of years. I'll click on notes and it allows you to put a note. This is not new. This has been around. I'll add a new note. Always ask about Son Jacob. These notes are relevant if you're going to be using the customer list to track your donors, members, or students. But there's this new thing here where you can make a note prominent. It only lets you make one, but this note is now prominent. And whenever somebody clicks on the name in the customer list, they're going to see this note up here in the top right. It's called a pinned note. You could always have notes, but now one of them can be pinned and therefore be front and center on the customer information window. I'm done. I know that sounds crazy, but that's really all of it. Those are all of the changes in 2015 that are relevant for you guys. Not very much, I know. So I'm going to go ahead and open it up for questions now for the rest of the time that we're talking about. Kami Yeah, we have a lot as you can probably imagine. I'm getting lots of different questions coming in about entering stuff in that's from last year, or from time that's already passed, or from different periods than your calendar year. Can you talk a little bit about how if there was a three month absence and nobody was doing the roll. Can you go back and back date, or do things outside of the calendar year? Kami Oh yeah, definitely, definitely. You can always enter transactions in prior months. There's a lot of us where nothing has been entered for months, and you can go in and you can enter transactions dated before today's date. As a matter of fact, I will take this opportunity to point out a preference to you. If you go to Edit and you go to Preferences, and you go to I think it's General, there is one down here that I want to point out. Default date to use for new transactions. Now if this is set to use today's date as default, then those are for people that are entering transactions when they occur. And every time you enter a transaction it will be today's date. You can change it before you save it, but the default position is that it will go to today's date in your computer. If you are entering stuff after the fact, this might be a little bit annoying because every time you go to enter something as of an old date, you are usually entering stuff in date order, but you are entering it from two months ago. So here I am entering something from April and we are already in June. By the way, I should tell you it is June 32, 2020 today in this computer anyway. So don't get confused about that. Let's see, I will point it to a program. But when I go to Save and New, okay, now that is interesting. Let me clear out of here. You see how I kept that date? It kept the old date. That is what you want to have happen. See, you will have to keep changing it every single time to the old date. And in order to make sure that happens, you want to make sure that this says use the last date entered as the default date. If I picked this one here, then it would keep defaulting back to the current date. You would have to keep changing it manually. More questions, what you got? Great. So we have a question about how to best record donations that may be for like a scholarship fund from an organization that covers tuition costs for some of their constituents. How would you best recommend recording that? Okay, so these are donations that are restricted for a scholarship fund. So this gets a little tough because I don't know whether or not this person wants to use QuickBooks as a donor database or not. If you want to use QuickBooks as a donor database, you need to be entering your donations here in the donations window. But I will tell you, I've had more than one school that has done this. What some of them do is they will create an invoice for the full amount of the tuition. And then if there is money that's donated specifically for a particular person's tuition, then the person will go in and do a credit memo to lower the invoice in the amount of that credit. But the donation itself is still a donation. It needs to go into the donation window. So what that means is… And the person who asked us to just type in that they do use QuickBooks as a donor database as well in case it's helpful. So yeah, that is helpful. So if you are interested in having it specifically lower a person's invoice, what that means is when you get the donation in, you'll need to record it as a donation so that the donor will get record for the fact that they gave you money. But then you'll also need to go into a credit memo which is refunds and credits. And you'll need to create a credit memo to lower the invoice in the amount of that donation. Now that's only if you're earmarking them for particular tuition to particular students. So hopefully that answers the question. That was a little bit much without us talking individually after the webinar is over. But if you email me, we can keep talking if you'd like. I'll pop up. And for folks who may have to drop off early or who do want to talk more with Greg after, there is an option on the pop-up survey that will show up in the post-event survey that you can check off that you'd like to get in. Thank you. Email from Greg, and then he can respond directly to that. So that is one way to get directly in touch with him after as well. And if it's okay with you Becky, I'd like to stay on the call like another 8 or 9 minutes after 3.30 Eastern Standard Time just to make sure that we do get a full 40 minutes. I don't know if you can do that or not. Becky- Sure, we can do that. I do have a couple of slides I need to show just around the donations that are available too so we can hop back into questions after that if we need to. We have a number of people asking about in-kind grants. Where do those get captured? Okay, so what you want to do with in-kind contributions, and let me show you how this works. I think I have this data file up because I usually get questions about in-kind, is an in-kind contribution has to be entered in QuickBooks. And really the best way to enter it is by using a journal entry, which I know a lot of you don't know how to do a journal entry, but that is really, there's not a special button for entering in-kind contributions in the nonprofit edition, so you'll need to do a journal entry. So let me just do the entry real quick. I'm going to go to Company and Make General Journal Entry. You'll need to create an income account called in-kind contributions. We just need the one, in-kind contributions. Then to make the account go up, if it's a revenue account you're going to increase it. So let's say this person donated $800 worth of office supplies. So then we're going to credit office supplies. And then the other account that goes up is the same account that you would have pointed the donation to had you had written a check to get what you got. So I would have pointed it to office supplies. So I point that to office supplies as well. So that's how you enter your in-kind contribution. Now if you want to know whether or not to debit or credit something, this isn't necessarily a QuickBooks thing, but I'm going to pop up something called pregnant Alice. And it tells you when to debit or credit. This is Alice, Alice, and she's pregnant. So if you want to make an asset account go up, you debit it. An expense account go up, you debit it. Liabilities, income, and capital, you credit it. I know y'all are like frantically writing that down. Isn't that kind of cool? What's your next question? So we have lots of people asking about how to use it as a donor database since that came up in that last question. We're going to talk a little bit about how people should do that. Sure, I will. And I could talk about a half hour about how this works. And I don't obviously have time for that, but let me just explain something to you. If you want to use QuickBooks as a donor database, there are all these neat little reports that you can get. Let me go back over to another company here, and I'll just point out a couple of things here. Let's see. I don't know what that was. If you want to use QuickBooks as a donor database, you're going to use all of these neat sales reports that you can use to analyze the organization's donations. I'm going to go Sales by Customer Summary Report. It gives me a list of my donors and how much they've given me over a period of time. I'm going to change the date range so that it's all dates. I'm going to check the columns, and I'm going to make it by year. How cool is this? So then I can look and see trends. Let's see. Here, Chad and Marie Brown gave every year, but they didn't give this year. Maybe I need to call them. This is just one of the reports. This report, as well as all of the reports that are in here, cannot be accessed. This is a report that gives you a list of the donors, how much they gave you, and I actually can show you. I don't have time right now. How to get these to print. Well, this is really easy. Page break after each major grouping, this will give you a separate document for each donor and how much they gave. It's just kind of cool, and you can customize it. But anyway, you've got to use the sales forms in QuickBooks. You have to use either this donation form or this create invoice form if you want to track pledges. You cannot go directly into the make deposit window and just start entering lines here. If you do that, you will not get the ability to use QuickBooks as a donor database. You can't do that. You have to use this sales receipt form. And it's the same information. You put the name of the donor here, and you put the income account here. You have to create something called items, which is pretty simple to do. Then you put this dollar amount here and the class. But you'll need to do that. But what's neat about these sales receipts here, because it freaks nonprofits out when they're like, I don't want to do a sales receipt. I don't want that. But this is the only way to use QuickBooks as a donor database. But what's neat about it is you can actually print this form out as a thank you letter. So when you go to print it, it pops out like a real thank you letter. Thank you very much for your donation of $1,000. This is a template that I teach you how to change in one of the training products. And I also teach it live at the seminars. But again, hopefully that answers your question. But the main answer to the question is you've got to use the donation receipt form for things that you have not invoiced for ahead of time. Or if you want to invoice, then you click the create invoice thing right here. Never enter stuff directly here in the make deposit window if you want to use QuickBooks as a donor database. All right, what else do we got? Can you change, or I'm sorry, can you use last year's P&L and import it for next year's budget? Yes, you can. So when I go to company, planning and budgeting, set up budgets like I'm going to create a new budget, one of the options is create a budget from previous year's actual data. So if you click this one, you click finish, it's going to take all the numbers that you put in last year. They'll already be here. And then you can just highlight them and change them before you save the budget. What's the next question? Can you change the type of budget you set up in the future? Okay, I think I'm going to answer it this way. Company, planning and budgeting, set up budgets. When you go to set up a budget and it asks you what type of budget you want, whether it be this one or this one or this one, these three budgets don't speak to each other. They're separate budgets in QuickBooks. And when you go to compare an actual to budget, you can pick whether you want to compare the actual to the class budget or the actual to the no additional criteria or the actual to grant. They don't talk to each other. So not only can you change the way you do it in the next year, you can actually have two budgets of different types in the same year. Next question? And sticking on budgets for a second, Frank asks, how do you treat carryover funds in the current budget? Okay, so this is interesting and what I'm going to point out, this is a big problem that a lot of people have, so listen very carefully. If you've gotten a restricted grant and you've got it all in, let's say you've got it all in the prior year, but yet you're going to spend it in the current year, the year into June of 2020. Well, you got it in in the prior year, so it's not really income in the prior year, but yet your auditor is going to force you or whoever is doing your tax return to report all of the income in the year that you got it, or even the year that was promised before you got it, even though you hadn't spent it yet. So then it throws your budget to actual off in the following year because it looks like you're budgeting for a loss. So what you want to do is you want to create, and this is something that will not make your accountant happy, but who cares? We only see them once a year, but you see your board all year long. So what you want to do is you want to create an account called prior year carry forward. Make it an income account so that it will appear up with the other income. Whatever your carryover is, put it there. Now, the $40,000 was actually on the P&L in the prior year, and now we're putting it on again in the current year, so that's really wrong. So you'll have to reverse this entry out right before you give it to the auditor. But then make the other side of it go to retained earnings. That's where all of your prior year stuff goes. It gets closed to retained earnings. Click Save and Close. So then you'll have this. So then it won't look like you're budgeting for a loss. Then you'll have your budget column next to it. Hopefully that answers your question. Now you will need to go in and just double click on this and reverse the entry before you give it to your accountant at the end of the year, or you can even delete it because your accountant is going to freak out if you change retained earnings. Next question. So we have a handful of people who are asking about tracking restricted funds and unrestricted funds, and I know earlier you said you can teach a whole course on just this, but can you talk a little bit about what your methodology is for that? Sure. And again, it's a little tough. I'm not sure what level of expertise people have, but let me just say this. The most important thing you got to track about restricted funds is how much is left to be spent, and basically what you want is a P&L for that particular grant. So what I want to tell you is the left column here when you're entering an expense is what the natural category is. The right is what program is for. That leaves the center column, customer job, for what grant it relates to. And once you do that, then let me make sure that I'm in the right file, and I might even be able to show you this. No, I've got to go to a different file. So what you do is you put something here. You put something here. If it's paid for out of a restricted grant, you put something here. And what some people do is they create a customer job call. This comes from your customer list, by the way, which you get to from right there. Click Customers. This is where all your customers are. But what some people do is they'll actually create a customer, and they'll call the customer unfunded. So then, any time you enter an expense on a check, or a bill, or a credit card, if it's paid for out of a grant, you put the grant here. If it's not paid for out of a grant, then you put unfunded. Then you can tell the key punch person, always put something here, always put something here, and always put something here. When you do that, then you'll be able to get, and let me change over to another data file that has some information in it. And this is important, so I don't mind spending a couple of minutes on this. Let's see. So then we go to Reports. And instead of doing a profit and loss standard, or a profit and loss by class, you do something called a profit and loss by job. Now, just please stay with me here for a second. The word job is real weird for nonprofits. It doesn't really make any sense. But just know that the word job and the word customer are synonymous in QuickBooks Land. This really should say P&L by customer, but it says job. You're going to click it, and then you put your grant here, whatever it might be. And then what's going to happen is, it's going to give you a P&L for every single customer in your customer list. Here is somebody who gave us a donation of $6.75. That's not a restricted grant. But don't worry, basically what you do is you filter this report so it only includes your restricted grants. Filtering is a feature that's been around for years. You go to the left-hand button that says Customize, and you click the Filters tab, and then you find, and this is kind of weird, because you don't filter what you want to keep out. You filter what you want in. So what you can do is you can go over to, well, I'll tell you what I've done. I've created a customer type called Restricted Grants, and I filter for that and say, please just give me the names that are restricted grants. I click OK. It gives me every grant that I've marked as restricted. And I do that in the customer list. So if I go to the customer list and go to David Webb, and go to Additional Info, this is where I can add a customer type called Restricted Grant. And I do that for each grant. So then this report, when I filter, will just give me restricted grants. Now if I look at this, it's for all dates. It's giving me the actual, I mean the ins and the outs for all of my restricted grants. The total here, right here, is all the money that's restricted that hasn't been spent yet. This is your temporarily restricted net asset number that you'll need to give to the auditor at the end of the year. I'm not sure if that's what the person was asking for, but this is basically the total of all the restricted dollars that you have gotten in that you haven't spent yet, and that's a really important number. So Norma, I'm sorry, go ahead. No, you go ahead. I was going to say, so Norma asks kind of an add-on question with this. If you use the customer job to track restricted grants, would you also do the prior year carry forward? As a customer job or of a grant, because if it's a grant that's multi-year, when you run the P&L, just make the date range the multi-year, and you'll have all of them. You don't need a prior year carry forward for that. Marjorie asks, how do you account for the receipt of the grant before you account for the spending? Okay, well, I think so. So when you get money in, if any money that you get in, if you've done an invoice for it, then you're going to do a receive payment, and that's how you receive money against an invoice. If you've not done that, then if you didn't invoice for it, then you're just going to click this Donations button and you enter it here. But this is where you put the name of the customer right here. And if you'd done an invoice for it, then you would have put the customer's name here. So the customer's name is going to be there. And if you receive from the same donor, you receive restricted and unrestricted grants, how do you record that? You're going to enter it as separate lines, separate grants. So you see how I have two grants under Help for You. I have Help for You 2019 and Help for You 2020. So you'll have to list it. Each grant, even if it's the same funder, has to be its own customer job. That's what jobs are. They're sub-customers, the same way sub-accounts are to regular accounts. Does that answer your question? You've got to have a separate grant for each one in the customer list. What else do we got? Very good. So we have quite a few people asking about the different versions of QuickBooks. So to kind of jump away from this and just get your take on versus the cloud online QuickBooks, QuickBooks version versus the installed QuickBooks Premier, which includes the nonprofit edition or Pro or Enterprise, what do you recommend? So let me see if I can try to get in here. All right, I got the wrong one. So some people, I wonder if it's this. It won't let me in this way. Nope, hold on one second. So I can't talk and think at the same time. Maybe this is it. Passwords, always tricky. There we go, I've got it. All right, so I'm glad you brought this up because a few of you that have the online edition, go ahead and say hello. Online edition, say hello to me. Chat me up because I want you to understand I do know that we've not been in the online edition and you felt left out so I want to definitely talk to you. So here's the bottom line here and I wish I had a slide on it, but I'll just open up a Word document here. So there is, let me move this over, so there is QuickBooks Pro which is a version that is fine. It would be the cheapest except for TechSoup makes the next one better which is QuickBooks Premier Non-Profit. Now you can buy QuickBooks Premier Non-Profit from TechSoup or you can buy regular old QuickBooks Premier, but when you open it up you can select the non-profit SKU and that basically makes it the same thing. So again, best thing would be that. Then there's QuickBooks Enterprise for people that have really big companies. That's the one that ends up costing thousands, not hundreds, and they have a non-profit edition there and that's what I would get if you're big enough to where you need that. QuickBooks for the Mac is your other option. That one does not come in a non-profit edition. It's just QuickBooks for the Mac and it is perfectly fine. If you have a Mac and you want to use it for non-profits that's fine. If you have a desktop you want to get the non-profit edition from TechSoup and then you've got the online edition users. Now people that have the online edition they're renting QuickBooks and their program and their data file is on the cloud and I'm going to just dial into this particular one here so that you can see what it looks like. Their screens look a lot different than the rest of ours. Here's their screen. There are three types of online editions that you can get and the best one is Plus and that's the one you have to get because it uses the class feature. Using QuickBooks Online for non-profits is a little bit challenging. It's certainly doable but I prefer personally the one that you get at TechSoup, the desktop version. If you want to be able to dial in you can always sign up for a remote access service for people to dial into the computer. Just so that you don't feel left out, the two biggest screens in the online edition or places to go is this Plus. This is where you go to Add Transactions. Here's what entering a check looks like in the online edition. It's all the same. It just looks a little bit different. Here's where you put the class. Here's where you put the customer job if it's a restricted grant. Here's where you put the expense account. Then the other place that's really important is this gear shift, not shift, it's this cog. If you click on it, this is where you go to Add Things. If I click Chart of Accounts, that's where I would go to Add My Chart of Accounts. Classes, you've got to go to All Lists and then you'll see classes right there. So while I'm here, is there anyone that has an online question for me? We have a comment from John saying, online is really good if you have multiple people in multiple different offices that need to use it together. So he recommended for that kind of scenario. Yeah, the main benefit of the online edition is that if you have multiple people you can give them all the username and password and they don't have to have anything loaded on their machine in order to get into it. But again, there are other things that you could normally do. You know that thank you letter that I was showing you in the regular desktop version where you could print out a donation and it comes out as a thank you letter? You actually can't do that in the online edition. You can't customize these forms to turn them into thank you letters. That's just one of the things you can't do in the online edition. Hopefully they'll be able to do it later. What other questions do we have or did you want to stop? Because we are at the top of the hour already, I do want to bounce us out of sharing really quickly just to show a couple of additional slides here for people who are interested in the donations of both QuickBooks and QuickBooks Made Easy. So Intuit offers donated QuickBooks so you can get to those products available for nonprofits, public libraries, churches. If you have a secular program like a soup kitchen or a daycare center that you run out of your church, those secular designated things can actually request and potentially be eligible for the donations as well. For QuickBooks 2015, there is Premier Editions One User License for $45 administrative fee, and this is a donation. QuickBooks Premier Editions 3 User License for $99, and QuickBooks for Mac 2015 which is a $25 administrative fee. And then additionally, QuickBooks Made Easy which is Greg's company offers their products as well. So if you're looking for QuickBooks Made Easy for nonprofits, the essentials, so if you're just getting started this is a really terrific program. There's a donated and a discounted version available and that's based on your budget. So if you're a bigger organization expect to pay a little more for that. But these are great programs where Greg actually runs you through a lot of the step-by-step process to how to get the essentials. He also offers additional products directly through QuickBooks Made Easy as well as those live seminars that he mentioned earlier coming up in cities around the country. We can stay on a few minutes longer but I do want to wrap up the main part of the webinar for people who have to leave. So with that in mind, I'd love to invite you to join us for upcoming webinars. Next week we'll have one on Crowdfunding Your Way to Year-End Success where we'll be looking at crowdfunding tips for the rest of this calendar year. If you are joining us from a YMCA, we'll have a program on November 13th that's specifically about tech donations that are available for YMCA's. If you work with Early Child Literacy and Children's Reading, we'll have a program about tech tools for early literacy. And then we'll be talking about Microsoft's link communication program and how you can use that to connect and collaborate. Here are some additional resources that you can find on TechSoup's website to help you get the most out of the TechSoup donation programs and resources available. And I want to do a thank you to ReadyTalk even though we won't be stopping quite yet. We'll stand for just a few more minutes to answer some other questions. But I do want to encourage you to take that post-event survey that pops up so we can continue to improve our webinar programming and check that box off if you'd like to get an email from Greg. And that gives you kind of access to emailing back and forth with him because no matter what we do right now, there's going to be a lot of questions we won't have time to answer today because we've got 85 in the queue still and we've already answered over 50. So let's go ahead and jump back into questions for the folks who can stay on. Thank you to all of you who've attended today and thank you Greg for all that you've done so far. But we can go ahead and try and answer a few more quickly. And I want to make a cut-off in say 10 minutes or so. We'll stay on just a few more minutes to answer some more. So speaking of the additions, we had a question from Cornelia asking, can data from the MAC edition be transferred to an accountant who's using a PC? Yes, the data from the MAC edition. So people can transfer in and out? Yes, if you go to File and I think it's under Utilities. See, Copy Company Files for Mac. So this is, I'm in the desktop version but you'll have something similar to say Copy Files for the desktop and you give it to me, open it up, and then I can switch this back to Mac when I give it back to you. Next question. And I really want to answer as many as possible. So you guys hang, don't go anywhere. I do want to show you one thing though. This is the website to go to to buy the products or to sign up for seminars. And if you go to the non-profits piece you'll read about the products here. This will show you where the products, what specifically is in the products. We do have people asking about compatibility with QuickBooks using other products. So one person asked about Donor Perfect Online and whether you can import and export and how well QuickBooks talks to that. Another person asked about Peach Tree and Sage Accounting Tools. Do you have any insight into how well they talk to one another? Sure. Okay, well Peach Tree and Sage, that's an accounting software package that would be an alternative to QuickBooks. And what I want to say about that is when you go to set up a new company there's a conversion tool you can convert a Peach Tree file into a QuickBooks file. Donor Perfect, Gift Works, Salesforce, these things are donor databases that some people are using. Can they import? Sometimes they can. And two, it didn't write those imports. The import was written by the other software package. Do I think they work well? No. Many cases they do not. So we're in the process now of actually I'm working with a company called Method to create something that will import beautifully. But at this point, I don't really have any of my clients importing through those software packages. Next question. Sorry, I was still muted. So where do you recommend tracking UR, TR, PR donations? I don't know what those things mean, so you'll have to educate me. UR, TR. Oh, okay. That's unrestricted, temporarily restricted, and permanently restricted. So on the balance sheet you're supposed to separate out your equity section. This must be an accountant into those three sections. So what I do is I create three equity accounts, one for unrestricted, one for temporarily, and one for permanent. At the end of the period, usually the end of the year, I make a journal entry, zeroing out retained earnings, closing into those next three. In terms of tracking it on a by-transaction basis, QuickBooks won't do it. You'll have to do it manually, and I wouldn't recommend doing it for each transaction. So I just do a journal entry into the year, and I showed you where you can go to get the number for the temporarily restricted, permanently restricted. It's pretty easy because it never changes. Don't worry if you don't understand what I'm talking about, whoever asked the question does. Next question. Is there a place to set up a separate budget for a capital campaign, or is that set up like any other account? I have a whole chapter on capital campaigns and the Beyond the Essentials product. I would use classes for that, and I would also have a separate set of accounts for that. And then you would set up the budget in both of those places. So yeah, you would use classes and accounts, and then you can set up a budget for accounts, and then another budget for the class. Great. And then Tanya asks, is the comment on the report, that little comment box that was available with the radio buttons back there, like the little crowd bubble, is that only available on 2015, or is that in 2014 as well? No, this is a new feature available in 2015, not available in 2014. It is cool though, isn't it? Hey, I thought so. So do all donations have to be called grants in QuickBooks, Ellen asks, or what do you call them in QuickBooks? Okay, a donation? Well, okay, so what I did, what I recommend is that I have, some people get kind of weirded out about like whether you call it a donation, or a contribution, or a grant, doesn't really matter to me. All I know is that I have one for individuals, one for corporations, one for foundations, and one for governments, and I didn't call individuals grants. I call them contributions. So now if there's a way that you want to segregate things out, like maybe you have contributions for a spring fundraising drive versus contributions for the fall fundraising drive. So what you want to do there is you want to use your item list, because items are the lines that go on the forms, and you can create separate items for each one of those, and point them to the same income account. So hopefully… Would that include things that would include like fees or dues, or if you're a church and using this, it would include the tithing that people might do in the church basket. That kind of stuff would fit in there as well. Yes, yes. So you might have an item for tithing versus a item for regular contributions versus an item for something else, but they all point to the same individual contributions account. And then you use those items on these forms. And then a couple of questions about the chart of accounts. For people that are coming into a position where somebody else managed it previously and several accounts are outdated or need to be removed, how can you revise the chart of accounts? And if you have no assets, for example, you don't have furniture, office equipment, is it okay to not have those things on there? Okay, so if you have furniture and office equipment in real life, they need to be on there. So what that means is that somebody never put them on to begin with and expense them. So if they're really old and they've been fully depreciated, then you still want to put them on there, but you want to put them on there, it's fully depreciated. So you want to do a journal entry to get them on there. As far as the other question about cleaning up the chart of accounts, what I recommend doing is basically any account that you decide you're not going to use, you basically just go to the bottom left-hand button here and you click Delete. If it's ever been used in a transaction, it's not going to let you delete it. Instead, you make it inactive. When you make it inactive, it hides it from view. So keep your eyeballs right there. When you make it inactive, it hides it. It's no longer there so that if somebody is going to enter a transaction, they won't be able to access it anymore. It won't be there. But it's still, the transactions associated with it are still there and they'll still show on reports provided that there was some entries made to them. So here's Poaches and Delivery, even though it was inactivated, it still shows on the P&L. So when you inactivate somebody, it just prevents it from being used in the future. The other thing I'll throw out there is if you have two accounts that really are the same thing, you can merge them. The way that you merge accounts is you basically pick the one that you want to keep and I'll just pick here Other Supplies. Let's say I want to put it with Office Supplies. So I'm going to basically go to the Office Supplies account, the one I want to keep, and I'm going to do a Control-C which copies it. And then I'm going to go to the other account and I'm going to go into the name here and I'm going to paste it, Control-V. And it's going to say that's already being used. Do you want to merge them? And when you merge them, it merges the accounts as well as the transactions themselves. So what next? Very helpful. So I think we just have time for a couple more before we need to let everybody go. But Tanya asked, I'm at a nonprofit with lots of musician contractors. And I guess with any kind of contractors that you may work with, can QuickBooks process our payroll if they're W-9 type vendors? Okay, so if they are vendors that are getting a 1099 at the end of the year, can QuickBooks do a 1099? Absolutely. Does it have to do with payroll? Not at all. Not whatsoever. So what you want to do is anybody who's supposed to get a 1099, go to the vendors list. You'll pay them as a vendor in the vendors list. And then in the additional info or tax settings here, vendor is eligible for 1099. You say yes, and then you put their federal ID number and you'll be able to get a 1099 out of the screen. Now there's some other things that you'll need to do in order to get the 1099, but you can wait and do those at the very end of the year. So it's not like it's too late to get a 1099 for 2014. You can go ahead and set this up now. If you go to vendors, print, file 1099s, there's a little wizard that you can walk you through and it'll show you what to do. You've got to order the 1099s from Intuit or go pick them up at Office Depot. Can't print them on black and white sheets of paper like you can the W-2s out of QuickBooks. What's the next question? Good to know. So this will be our last question since we're already 15 minutes over. So if you have services, I know we talked about if people make donations in the form of tithing or other types of fees. If you have a service fee for your coming in as part of your income, is that the same thing that you list out on your list for your – I'm not remembering what it's called. Clearly you're not an accountant. Yeah, it's a service fee for doing what? What does it say? Well, if you're receiving a service fee from your users, I think. So if this is some of your income coming in and you're listing it in – I think I'm going to answer it this way. So some of your income might be deductible. It sounds like a service fee is more like a fee for a service and would not be deductible. So you definitely want to have – It says for mental health services. They just added. Yeah, so that's not deductible. So you want to have a separate income account for it. Call it service fees. Now at the end of the year, if you're entering things on the donation form, you're going to use items. So you want to have an item for your service fee and you point it to your account. When you do a report that's a sales by customer detail report, it's going to give you all the income for the customer. And I think what this person is saying is, I don't want the service fees on this report. I only want the donations. So if I click Customize and click Filter, I can filter by item. And I can only pick the items that are donation items. I will pick the items that are service fees. And then the report will shrink up and it will just give me the ones that are donations. Hopefully that's what that person meant. How many people are on the call? We still have 93 people on. But I don't want to keep people much longer because we have already gone 15 minutes over. But I do want to make sure people know that we're so appreciative of all the questions. We're sorry we can't get to all of them. And we hope that we've given you some good food for thought to get started, improve your QuickBooks, whatever version and expertise level you're at with this webinar today. We will include these special offer codes that Greg is showing on the screen in the follow-up emails. You'll be able to access those if you want to continue learning through Greg's products. And if you want to receive any of the donations available through TechSoup as well. And we will make sure in that pop-up email that if you want to follow up with him on anything that you check that little box to let Greg email you. And he'll send you a separate thank you email within I don't know, probably a week or so, and then you can follow up with any questions that we didn't have a chance to answer today. So thank you all so much. Thank you Greg. He's showing on the screen right now the different cities that he'll be hitting in the coming months. So if he's coming to your town definitely check him out. He's lively and entertaining on webinars, but you can't even imagine how much more lively and entertaining he is in real life. He's a great presenter for a full day. It's been a busy week for me. All right, thanks guys. And there it all is. So come see me live. And just please check on that link. It's okay for me to contact you when she sends you that little post thing. And then that way I can talk to you and you can get your questions answered. Yes, and you will receive an email from me later today. So you'll get a post event survey that pops up on your screen as soon as you exit out. So go ahead and complete that so we can continue to improve our programming. And that's where you'll check the box to say you'd like to have Greg be in touch with you. And then after that you'll get an email from me later today with the full recording so you can watch any parts that move too quickly. And you can refer to all of the resources that we've made available to you today. So thank you so much Greg for taking the time out. Thank you everybody who's stuck with us for an hour and 45 minutes. We really appreciate that. And have a terrific day. Thank you all so much.