 Hi everyone. Thank you so much for joining us today for our webinar, QuickBooks Online for New Nonprofit Users with Greg Bosson. I just want to go over a few housekeeping items before we get started, so all callers will be muted. If you have questions, you should see a chat box on the left-hand side of your screen where you can ask questions along the way. And we'll also have a Q&A at the end, and Greg will be stopping for questions throughout the presentation. So if anything comes up, feel free to use the Q&A chat box. If you have to leave the webinar early or you want to watch it again once it's over, please visit our website, www.techsoup.org, slash community, slash events, dash webinars. You'll also receive an email with the presentation, the recording, and any necessary links. If you're on social media, feel free to tweet at us at TechSoup, and you can use the hashtag TSWebinars. So just a little bit about TechSoup. We are in 236 countries and territories, and we serve over a million organizations. We work with several technology partners such as Adobe, Intuit, Microsoft, and Symantec, and also QuickBooks Made Easy who is going to be presenting today. So just before we get started, I one want to wish everyone a happy International Women's Day. And two, if you guys could just practice using the chat box on the left-hand side, and just let me know where you are calling in from, and I'll read a few of them out. We've got Montreal, New Jersey, Denver, Indianapolis, Philadelphia, Vermont. So we have people calling in from all over the country which is always really nice to see. So if you have questions, once the webinar is over, you can go to TechSoup.org slash Intuit for more information. And now I'm going to go ahead and introduce our presenter, Greg Bosson. So Greg Bosson is a practicing CPA and advanced certified QuickBooks Pro Advisor with a full service accounting firm located in Atlanta, Georgia. He's also the founder and CEO of QuickBooks Made Easy. Since 2000, Greg has been teaching live QuickBooks seminars around the country specifically designed for nonprofits and he's considered to be a national expert in the program. So I'm going to hand it over to Greg. Thank you very much, Seema. And hello to everybody. Now the first thing I want you to know is that this isn't your normal webinar. So if you're thinking you're just going to kind of fade in and out or something, that ain't happening. Because I am going to be the most interesting and fun person that you've ever listened to. I'm also going to be wildly inappropriate. So please make sure to listen. So close your door, kick out anybody that's in your office. Don't be interrupted because even though this seminar is free, it's going to be one of the most valuable hour and a half that you've ever experienced in your entire life. So now that I've set expectations really low, I'm going to say, let's see, I want to make sure, thank you Lauren, I can see your chat too. So I want everybody to say hi or hello or whatever. I know some people can't hear, but they can't hear me say that. But I want to know that you can hear. The other thing I want to know is I want to know, Hola, nice. I also want to know whether or not I sound too loud, too soft, or just right. I want to hear that. So let me know because we're going to be here for an hour and a half. Sound is fine, says Becca, that's cool. Ah, somebody spelled my name right, yay. My mom didn't like Gregory so she stuck an extra G so it's just Greg. Cool, everybody is great, monotone. Terry, I don't believe I've ever been told that I'm monotone, but I will try, oh my God. So I have a friend who's listening to me right now. Hi, how are you doing? Where are you? Say hello. I don't remember your first name, but it's my friend Duncan's wife. Anyway, whatever, we need to start. So let's see. This is me. And I do a couple of things in my life. As Seam already said, I own a CPA firm in Atlanta, Georgia. We specialize in nonprofits. We have hundreds of nonprofit clients across the country. We do audits exclusively for nonprofits, too. So if you have audits, somebody keeps saying turn off the music. There is no music, Susan, so I'm not sure what's up. Anyway, I'm not sure what's up with that. Anyway, so I have my accounting firm, but then I also teach QuickBooks. And I do it through a company that I own called QuickBooks Made Easy. And what QuickBooks Made Easy is all about is teaching people how to use QuickBooks. And specifically, we focus on the nonprofit industry because I love nonprofits and that's what I do in my practice. So how do we teach people? We teach people using DVD training products, one of which you can get at TechSoup. They're DVDs that come along with handbooks. We also have Tech Support Agreements that you can sign up for where you can call us 24 hours a day, 7 days a week. And then we have live seminars and webinars that we do. So here is where some of our live seminars coming up are, there's one in Portland on May 3rd. There's a 3-day desktop webinar series that's coming up. I think this first one is for people using the desktop version of QuickBooks, and this one is for those of you that use the online edition. So anyway, if you like us, we're going to give you discounts on this stuff so you can sign up later. But let me get into this thing and teach you for a while, right? So this is what we're going to do. So this is what we're going to learn today. First we're going to learn what QuickBooks online choices are available. And by the way, this class is for online users. If you are a desktop user, I'll talk to you in a second. Don't hang up yet. All right, but this is for online users. We're going to look at the different choices and which product is best for you. That's real easy. So I'm going to take a second. Then we're going to look at initial setup. I'm actually going to walk you through what you do when you set up a new account and get a new file in the online edition for those people that haven't done this. Connie, yes, I would stick on the line because a lot of the features or the techniques we use, Connie, are going to be the same. So don't worry about that. Plus, I'm very interesting. All right, so after we look at the initial setup, we'll look at how to get around in the online edition, how to enter opening balances, which is one of the first things you have to do when you're setting up a new account. And then we're going to look at what the proper setup of your chart of accounts and your programs are. We're going to spend a bunch of time on these two things because setting things up is the most important thing you've got to do. If you don't set up right, your books are never going to give you the right reports that you want. Then we're going to end by looking at budgets. So that's how we're going to look. That's what we're going to do. And I have a little poll here, and I want you to answer the question. This gives me an idea. I know this is supposed to be new online users, but I know there's a lot of you that you just said, you saw the word QuickBooks and you just signed up, so whatever, right? Go ahead and answer this. How new are you? Never used any QuickBooks products? Know the desktop, but new to online? Know QuickBooks, kind of online, but not really well. You know it really well, but not for nonprofits, because the setup for nonprofits is actually very different than it is for most other businesses. You're good, you just have some questions. You're a QuickBooks master. And we've got four people so far. What is this online that you speak of? I love that. So we've got 624 people on the call. We've got about 300 that have answered. Now listen, I know that you probably have a ton of other things that you're doing, but you need to stop and answer this question because I really want you to pay attention to this seminar. As I said, I'm very interesting. Let's go ahead and skip to the results. So actually it looks like this is about right. So we've got about over a third of you that have never used QuickBooks before, and then 25% of you that have never used the online edition. So the vast majority of you, what is that? Over, what is that? 80%, don't know the online very well at all. So we've got about 20 people here that know it pretty well. 12 people just want to be funny, which is nice. I like that. But anyway, that's the online thing. So having said that, we're going to start teaching. This is codes that you can use to get discounts off of that 3-day webinar series, tech support, and the training product. But we'll worry about that at the end. So we'll worry about that at the end. I'm not going to worry about that right now. So one thing I always like to say is what is QuickBooks for? In case you've never used QuickBooks before, it's a financial software package. It's a financial software package, which means, yes, it does your accounting, in other words, creates the financials, but it also will track your invoices and your receivables. So if you're a membership association or you invoice for something, it will do that. It will track your expenses. You'll enter accounts payable, print checks. It will do payroll, and it will process credit cards for you, but you need to pay extra money for that. A lot of people do. A lot of people don't. We can talk about that if you have questions about it, but probably towards the end. We're going to take questions throughout, but at the end, we'll have some time hopefully to answer any questions that you have. So during the seminar, if you could keep the questions about what I'm teaching, that would be helpful. And by the way, in addition to a financial software package, it will work as a light donor database. We actually have a webinar through TechSoup in a couple of weeks, or next week, I don't know, it's on the 15th, I believe, where we're going to go into the specifics of how to use QuickBooks that way. So anyway, so that's kind of what the dealio is, but let's get started. So the first thing that we need to talk about is the different online choices. So I'm going to click on this slide. So there are actually, and by the way, I'm getting ready to go into QuickBooks, and I'll be in QuickBooks the rest of the seminar, so don't worry about that. So these are the different choices of QuickBooks. There are four. There's self-employed, simple start, essentials, and plus. This is the cheapest, plus would be the most expensive, but plus is actually the one that you have to use. So every single solitary person listening on the call, if you have QuickBooks online, you must have the plus version because it has the ability to track programs, and it has the ability to do budgeting. Fortunately, that happens to be the product that TechSoup offers, and they offer it for $50 a year. So if you haven't bought it yet, that's where you need to buy it from TechSoup because it normally costs $50 a month, not a year. So I am now sharing my screen, and I can also no longer see your chat, so I'm going to be asking David and Seema to read me your chats periodically. So keep on chatting. So this is the online edition, and Dale, is Dale there? Dale asked a question before, and I wanted to talk to him. Is he there, David? Where is Dale? Did he leave? Dale is not responding. See, that's what I'm talking about. You know, Dale's here. Okay, Dale, you just about, so Dale said that he has QuickBooks Premier, which tells me that Dale probably has this version of QuickBooks. If you have this version of QuickBooks, you in the wrong seminar, all right? This was the seminar that we taught a couple of days ago. So we did a seminar on the desktop. Now, if you are sitting and listening to the call, and you realize how fun this is, go ahead and hang out because a lot of the techniques are the same in terms of how you set things up appropriately in QBO as they are. QBO means QuickBooks Online, as they are in the desktop. So that's kind of what the dealio is. So you got to have Plus, and for the person who wants to know how to find out if you have Plus, there's a couple of different ways to do it. Go to this little gear right here at the top, right? Go over to Account and Settings. Now, don't do it now. You are listening to me, but you can do it later, unless you have double screens. That would be really cool actually. Then you go to Account and Settings, and if you go to Billing and Subscription, it tells you what you have. But as you can see, I have QuickBooks Plus right there, okay? It says it's $40 a month. It's actually going up, so it will go up. But anyway, so that's what the deal is with that. So you got to have Plus, because Plus allows you to do budgeting. So enough about that. So let's move on to the initial setup. Now, I have already set up a data file here. David, if you haven't even signed up to get a QBO, a QuickBooks online account, chat me up. I want to know how many people have never even signed up. Are there people that don't have a QuickBooks online account yet? Go ahead and chat and let us know. And then David is going to answer me. David Yeah, there are several people that haven't. Okay, so there's not a ton, but maybe like what? Like 10 or 11 or something? David Oh no, there's a lot. David Okay, all right, because we got 600 people on the call. So a lot would be anything over 50, I would say. But anyway… David No, it's not over 50. It's probably over 20. David Oh, so it's pretty small. So you want to get it from TechSoup, which I'm not going to show you that website. You already know where it is. That's how you signed up for the seminar. But I am going to show you what happens when you sign up. So I'm going to go ahead and click on this. And I'm going to click on Free… This is the QuickBooks website. This isn't where I would want you to get it. But anyway, I'm just going to show you what happens when you sign up. So I'm going to click Free Trial. And it's kind of funny because even though you clicked Free Trial, you see this little dobbly-boop or whatever it is is stuck on Buy Now. So if you click Buy Now, you're going to give it money. So I'm going to move this back over to Free Trial because I don't want to pay anything for this. So you've got to get the plus. Of course, that's the most popular. See, it's $50 a month. You click Try it Free. Now even after you click Try it Free, it's kind of funny. You have to basically, at this point, you would need to sign up for an account with and to it. In other words, you'd have to give them your name and your email address and contact information and stuff like that. I already have signed in, so I'm just kind of adding another company to my account. So I'm just clicking Yes, that's correct. Now once again, if you're not careful, you're going to end up paying money. If you want a trial, you've got to click Continue with Trial. And that's it. That's really all that you do. If you click Buy, you've got to pay money. But again, you're going to be getting it from TechSoup. When you get it from TechSoup, you sign up through them and they send you a link and you click on the link and it goes to the screen. And that's everything you do basically. It's not really that hard. So when you very first set up, there won't be any numbers. The numbers will be blank. Now I'm going to stop for a second and tell those of you who have been using QuickBooks for a little while anyway. It used to be when you went to set up a new company, it would actually ask you questions about the name of your company, which it still asks you questions about that. But it also used to ask you what industry you're in. And you could pick non-profit. Well, that no longer is happening. They've just changed it, I think in the last week. So now there is no what industry are you in. When you sign up for a new company, and let me see if I've got to switch companies here because it took me to an existing company. So I want to see, here we go. Here's my new company. So when you go to it, you won't have obviously any transactions. So yours will just be zero. And these are the two questions that will ask you what's your business call. I'll call it my, cool. And those of you that have already done this, don't worry. I'm getting ready to teach you stuff. I promise. How long have you been in business? Less than a year. They do have this thing where if you're already in the QuickBooks desktop, you can actually upload it to your online account, which is pretty cool. It uploads all the transactions from the beginning of time, all of your lists. It doesn't upload your budgets. It won't do that. So you'll have to reenter your budgets if you have memorized reports. It won't do that. Of course, that doesn't mean much to most of you guys because your brand need a QuickBooks. All right, here is you kind of pick what things you do. And you don't really have to be perfect here in terms of knowing what you're supposed to pick because you can always change stuff in the actual program itself. So let's say I do want to do invoices. I want to track bills. And I want to organize my expenses. That always sounds good. So then I click All Set. And then there it is. So that's basically it for what you do to kind of start your new account. All right? So the next thing I'm going to teach you is how to get around in these screens. And I know some of you have already been planning to play around with it, but I think I'm going to be able to really help you understand what you're looking at. So I'm going to stop here and take a couple of questions. So what do we got, David? Or SEMA might be nice to hear from SEMA as well. I think a lot of people are wondering, just one question, sorry SEMA, that if the process, if they already use QuickBooks online, but they want to switch to the TechSoup version of QuickBooks? Well, I was hoping nobody would ask that question. So here's the deal. I know because you're like, dude, I'm using QuickBooks online. I'm paying $40 a month or whatever, $50 a month. And now you're telling me I can get it for $50 a year? Yes. But what you have to do is you have to create a new account through TechSoup's sign up. So you've got to go to TechSoup, you sign up, they send you a link, you create a company. Leave the company blank. It can look just like this. You don't have to put anything in it. Then what you've got to do is you've got to go to your old company, you've got to go to your old company, go to this gear, and click Export Data. And then you go through these screens and you have to be in Windows Explorer in order to do it. And it will basically take your entire data file that's online and you have to put it, it will give it to you in the desktop version. Then when you're in the desktop version, then you can upload it back to your new account. So you can't go directly from one online account to another online account. You have to go down to the desktop and back up to the online. So if you're thinking to yourself, well, I don't have the desktop. It's time to call your accountant or your bookkeeper, whoever it is, see if you can find somebody that will let you do that. I know this is a pain in the butt, but it will certainly save you a lot of money. So that's kind of the way that you do it, and I apologize. You basically have to go down to the desktop and then go back up to, here we go, Import Desktop Data, go back to your new account. So that's your answer. Anybody else? Got a question? So I'm going to show you how to get around in the data file. And we'll use this data file to start with. Actually, you know what? Let me go to a data file that already has some numbers in it. It'll just look a little bit better here. By the way, if you're a nonprofit with that $50 that you're paying once a year or once a month if you don't do it through TechSoup, that only gets you one company, one account here. Look at all these I have. I have tons of them. So if you're a nonprofit that has more than one company file, in the desktop version of QuickBooks, in this version, you could have more than one company a file. You could have hundreds and not pay a dime extra. In the online edition, you're going to have to pay for a new data file. Every time if you have a new company you've got to pay extra money. And TechSoup is only going to allow you to use that $50 a year once. You can't just keep using it over and over again. But anyway, let's see what else do I need to do. So I'm going to go to a data file where I already have some numbers. And I'm going to tell you how to get around in the data file. And after that, then we're going to start talking a little bit more about setting up. So this is for people. Most of you are going to benefit from this hopefully. So the first thing is, this is called your Dashboard. And I know I'm speaking as if you don't know anything about computers. And a lot of you probably do. But hey, listen, I'm 52 years old. What can I say? I don't know anything myself about computers. Anyway, so these are charts here, various charts. And most of these charts, they may not mean much to you. They may not be that helpful to you. This income chart, you may not have anything. Yours just may say zeroes on it. The only reason why this chart would have numbers is if you are somebody that's invoicing customers through QuickBooks. If you're not invoicing customers through QuickBooks, this chart's irrelevant. Can you make it go away? No, you can't. Expenses, we all like to look at this chart. It's a pretty little circle and it has our expenses and everything. You can control the date range here. So that's kind of cool. This is your P&L as a chart. It gives you the income and it gives you the expenses. That's not very good, is it? Let's see. This is over here where your bank accounts are. And I will tell you that if you are in the online edition, which I assume you are, the very first thing that you're going to do, particularly if you're kind of a techie kind of person, is you're going to go over here and you're going to immediately connect your accounts. You're going to connect your bank account and your credit card account so that QuickBooks will just download those transactions and they'll already be in your QBO file. If you do that, and without knowing how to appropriately set up your chart of accounts list and where you put your programs, your books are going to be a mess. And you're going to think everything's great, and in actuality everything is going to be not great. It's going to be horrible when you come to the end of the year. Sure, maybe all the transactions are there, but none of them are pointed right. So I really like to not talk about downloading until after we've set things up. And that's the purpose of this whole webinar here, is setting things up. So I'm not really going to do much with transactions here, although we can answer questions about it. We're more all about the appropriate setup because we're talking about new users here. We are going to do a little bit with transactions though. Anyway, and then this chart over here once again will have nothing in it unless you use the sales forms in QuickBooks which is like the invoice form or the sales receipt form. If you don't do that, then this form won't matter. This is a bunch of advertisements, so I just like to hide that. Oh well, you have to hide each one individually. So my point is the major stuff that's on the screen is kind of irrelevant. So I'm going to tell you where you go to do stuff. Alright, anytime you want to set anything up, put a new account in the chart of accounts list, enter a budget, do anything other than transactions pretty much, you're going to click on this tiny little thing up here which is like a gear. It's at the upper right and you're going to click it and it's going to give you, this is where you go to set stuff up. Here's where you go to do budgeting. Here's where you go to do your chart of accounts. This is where you can change the look of your sales forms in QuickBooks. There's all kinds of stuff here related to setting up. If however you want to do a transaction, you want to add a check or a bill or an invoice or a deposit, you're going to go to this little plus sign. So I'm going to click plus and this is where all of your transactions stuff are. So unlike the desktop where it's all over the place, all of the stuff that you do is kind of all in the same place. So that's kind of what the DLEO is with that. The last place that you'll go to, or the third place because you'll go here often is when you want to look at reports. So when you want to look at reports, you go over to this reports thing right here and you click it, reports. Now let me talk to you about this. The report window is changing. This is the way that it used to look, but it's going to look different in the future and I'll show you what the difference is in a minute. But anyway, let me just teach you this. So when you're looking at reports, there are actually five different categories. There's recommended reports, there's frequently run, custom reports, manager reports, and all. So I like to go to the all report sections. Recommended reports is basically just major stuff that they think that you need but they don't know what they're talking about so why do that, right? Frequently run, that's stuff you run a lot. They base that on how often you run reports. My custom reports, this is where your memorized reports are and that's going to be very important for you. What you want to do is you want to memorize reports that you use often that already have, the reports are already formatted the way you want them to be and then you usually go there to get your reports. Manager report is something that they try to create to make it look real pretty for board of directors or something but I'm not really very impressed with it to be honest with you and you can't really change them very much. So you can look at it but I doubt you'll use it. Somebody on the phone uses it I'm sure. All reports, this is where all of your reports are. This is where all of your reports are. So I want you to understand something. If you look down here and you say, wow, I don't have that many reports to choose from. There's a balance sheet in a P&L but what if I want to look at my like receivables or something? That's not here. It's because we are in the sub of all reports called business overview. So there, you see this little all reports right here? You want to click on this when you're in all reports and this gives you the different subcategories of all reports. Business overview, this is where you're like P&L is your profit and loss. This is where you look at receivables this is where you look at payables. So this is the subcategory. And the reason why I like to point this out is because let's say you want to look at receivables. You click on here, you find the report that you want to look at, everything is good. Well, maybe a couple of days later you want to look at another report. You go over to reports again, it goes back to where you were. And if you don't remember about this thing here, you're going to be like, wait a second, where are my reports? You got to click the all reports to go basically up one level to the main category. Now just last week, I think it was last week or it may have been the week before, they changed the look of the report. So I'm going to go to a new data file that I have which, here's one right here. And I'm going to show you that it actually looks different for new data files. Look at how it changed. So what they did was, Favorites is something that's kind of like their recommended reports, but you can add stuff to it. Here's your business overview. They changed receivables to who owes you. They changed sales to sales because it's the same report. It just looks a little bit different. And eventually all of yours will look like this. It will change. But at this point, it's still looking the old way. And I think that's all I need to say about the getting around stuff. The only thing I just kind of like to summarize at the end, so the gear, that's where you go to set stuff up. The plus sign, that's where you go to add transactions. Reports are where you go to look at your reports. And this is the Dashboard. Questions, who's got questions about getting around? Anybody? Yeah, there's a couple of questions about the bank account. So how hard is it to connect your bank account later on? Should you pick a certain date to do this? Okay, it's very easy to connect your bank account. You just click this Connect Accounts thing right here, and you put your bank. I'll pick Amex, but you can pick any account really. Almost all the banks in the country work with QuickBooks. Put your username and password here, click Continue, and that's really all you do. You pick which account in QuickBooks it syncs to, and then it just starts downloading transactions. The first time it downloads, depending upon your bank, it may download three months of activity. Maybe activity that you've already entered. But when you download transactions, they are not in QuickBooks yet. They are in a holding tank. I'll show you the holding tank. Here's the holding tank right here. These transactions are not in QuickBooks yet. They have been downloaded from the bank. Here's Smoothie King. I like to go to Smoothie King a lot. But anyway, and so what you do to add them to QuickBooks, you point them to the appropriate expense account, and you click Add. But if you don't know what these accounts, how they should be set up, and you don't know where to put your programs, your books are going to be a mess. And you can, by the way, you can delete transactions from here that you know you've already entered. Additionally, if it's already in QuickBooks and they know it, it'll say that's already in QuickBooks, and you can push this thing to say match instead of add, so it won't add it twice. So that's kind of what the deal is with that. The other thing I want to teach before we take any more questions is unlike with the desktop, listen very carefully. I want every one of you listening to me because this is very important, particularly for new users. I'm going to take a sip of LaCroix here. I love LaCroix. What's your favorite LaCroix? I want to hear that. Chat me up. Anyway, so now listen to me though. When it comes to the desktop, you can see more than one window at a time very easily in the desktop. Here's a P&L, and let me see, I've got to move this, and I'll make it smaller. And then I can also open up a balance sheet. So I can see more than one window at a time very easily. In the online edition, you can see more than one window at a time, but it's a little bit different. Remember this is a cloud-based software, so every single page that you're looking at is its own web address. So see this web address up here? Now watch what happens when I click on reports, it becomes a new web address up here. So since every page is a new web address, how do you think you would see more than one page at a time? What would you need to do? Somebody give me the answer. Anybody? Yeah, you have to basically open up a second instance of QuickBooks. So basically, I'll take this right here, and well, you don't really have to copy and paste in Chrome. And by the way, Chrome is the best option for looking at QBO Chrome. Not Windows Explorer, not Firefox, but Chrome. So I'm going to right-click in Chrome and click Duplicate, and then it creates a new window for me. And then I can change this window and make it look different than this window. And then to see them both at the same time, of course, you'll have to click and drag so that you can see them both at the same time. And you can actually put it on a different screen. I can only show you one screen, but anyway, it's kind of cool. So that's the last thing about getting around. So does anybody have any questions before I move on to settings things up? I've seen a few questions. Can you just talk about Mac and QB? I think there's some questions about compatibility. Oh, no, no, no. The online edition will work with Mac swimmingly. It works the same. It's every bit as functional as it is with the desktop. I'm sorry, as it is with a PC computer. So if you have a Mac, you absolutely need to get the online edition. Because to be honest with you, the desktop version of QuickBooks, you have to get one that's compatible with the Mac, and the one that's compatible with the Mac is called QuickBooks for the Mac. I think they sell it. I don't know if y'all still sell it at TechSoup or not, but they stopped supporting it in 2016. So the Mac version for like a desktop Mac version that's not in the cloud that looks like this, that's gone by by. So online is the way to go. Anybody else? Let's move because I want to make sure I have time to get through everything. So the very first thing that you're going to want to do after you've done this is you're going to want to set up your chart of accounts. The chart of accounts is the most important list in QuickBooks. And actually, all accounting is entering transactions so they end up on two reports in QuickBooks. And those reports come from the chart of accounts list. Let me say that again. I went around the gobbledygook. Let me ask you this. The whole point of accounting is to create two reports. What are those two reports? Y'all tell me what you think. What are the two reports? The whole purpose of accounting is to create two reports. All you do is enter transactions. They end up on the two reports. All right, P&L, that's one of them. Here's the P&L right here. And then what's the other one? The balance sheet is what people are saying. The balance sheet, right, the balance sheet. Now the balance sheet, I'm going to go to a memorized one that I have. The balance sheet is basically a snapshot picture at a point in time. It has all of your assets which is the stuff you have, like how much money you have in the bank, what people owe you, what your fixed assets are, and it also has the liabilities. Then it has the difference which is equity. That's the balance sheet. It's basically a snapshot picture of what you have. The other report, which is the P&L report, the P&L report, that's different. The P&L report tells you what happened over a period of time. It's basically just the transactions that occurred during the period, how much money came in, and how much money went out. So the way to look at the two reports, it's kind of like, the P&L kind of tells me the story of what happened over a period of time, whereas the balance sheet tells me what I look like at a point in time. So the balance sheet is kind of the result. So if you are going to use QuickBooks, you must get the chart of account set up right. Because all of these lines on your balance sheet and your P&L, they come from the chart of accounts list. I'm going to go over to the chart of accounts. Let me duplicate this so I can have two windows open. And then I'm going to go in this one, and I'm going to go over to the chart of accounts list. Let me close this. And you will see that the accounts that are here, checking, savings, memberships, they appear right here, checking, savings, memberships. So the chart of accounts list controls what these accounts look like. So we are going to talk about how to appropriately set up your chart so that you can get the reports that you need. Now, when it comes, I'm going to break this discussion up into three kind of categories of accounts. First we are going to talk about what your balance sheet account should be, and then we are going to talk about what your income account should be on your P&L, and then what your expense account should be. So I'm going to do the balance sheet first, and then I'm going to stop and take a couple of questions. The balance sheet accounts, they are not that difficult. Basically, they are the accounts, your assets, or the things that you have. Now I bet even if you didn't know anything about QuickBooks, I'm kind of zooming in here to make it easier to read. If you didn't know anything about QuickBooks, you knew that you had to have a separate account for each one of your bank accounts. If you have people that you invoice out of QuickBooks, you will need to have a receivable account for them. Another one that everybody needs is fixed assets. We need a furniture and equipment account. Now some of you are small. You will just have one that says furniture and equipment. Some of you are larger organizations. You will have one for furniture, one for equipment, one for land, one for building, one for automobiles. The typical ones you need. On the other side, on the bottom half, you have all of the accounts of the money you owe. The top half is all the things you have. The bottom half is all the money that you owe. And just like with the top half, you won't have to have very many of them. You will need an accounts payable account. QuickBooks will create that for you. You don't have to worry about creating it. You will need to create your bank accounts though that were up at the top. And you will also need to create your credit card accounts. If you have credit cards that you buy stuff with, you will need to create an account for that. If you have a payroll that you are running through QuickBooks, in other words you have the Intuit Payroll Service, you will need these payroll liability accounts, and if you are with an outside payroll service you don't. And then finally, you will need an account for each one of your loans. We only have one account here, Bank of America Loan. So those are in general the type of accounts you need. Now the best place to go to, if you are thinking to me, Greg, I've never even seen a balance sheet before. I really don't know what my account should look like. What you want to do is you want to get a financial statement. Somewhere in that office is a financial statement. If you have an audit, you can look at it. You can also even find it on the tax return. And you want to look at the balance sheet that's in your old system or that somebody else has created. And I've got one right here, and this will tell you, oh, I have a checking, I have a savings, grants, prepaid. You shouldn't have very many of these accounts. There shouldn't be very many. And one thing that's very unique when your first setting up QuickBooks is not only do you need to put in your balance sheet accounts, and I'll show you how to do it in a second, you also need to create, you need to enter the balances, the opening balances for those accounts. Because say your bank account as an example, well when you set it up, there's already a balance in there so you need to put that balance in QuickBooks. So what you have to do when your first setting up is you have to pick a date. You have to say, Greg, well that's me, you'd tell yourself, you'd use your own name. But you'd say, Greg, what day am I going to start using QuickBooks online? And usually the best is to pick at the beginning of your next fiscal year. You don't have to do that, but it's best. So anyway I'm like, okay, I'm going to start as of June 30, by the way in the seminar today in the webinar is 2020 right now, which is an election year. Y'all want to go through another presidential election? It was so fun the last time. So June 30, 2020. So I'm picking that day. That's when I'm going to start using QuickBooks so you've got to figure out what your accounts are going to be, and then you've got to put the balances, the opening balances for them. So I'm going to do it just for the checking accounts so that you can see. So we have a checking account here. The balance here is $43,440.26. So I'm going to create that account. So I'm going to go over here. Let me show you where you go to create an account. Well actually let me ask you, I told you where to go to set things up. Y'all chat me up. Where do you think you'd go to create an account or set up an account? Go ahead and chat me an answer. What do we got? You go to the gear at the top right. We click it. We click chart of accounts right there. And here's your chart of accounts list. Then you're going to go over to this button that says new that if you didn't know anything about QuickBooks you'd probably figured that out and you click it. And then you're going to create an account. So the very first thing it wants to know is the type. Now these types are very important. Whatever type you pick determines where the account appears on the financial statements. So if I pick bank, where do bank accounts appear? Are bank accounts on the balance sheet or on the P&L? What's the answer? Balance sheet or P&L? Balance sheet. Yes, balance sheet. Whereas if I pick income accounts, where do they appear? Where do income accounts appear? Balance sheet or P&L? P&L is what everyone is saying. So if you don't know what the type should be, ask your accountant or bookkeeper. These account types are fixed. You can't change them. And this is standard in the accounting world. So we accountants love these things and we will be able to tell you what the type should be. So I'm going to create an account for my bank. So I click bank. Now the first thing underneath it, you're going to see something that says detail type. Now let me just explain something to you about the detail type. This is something, A, that you must fill out, and B, is completely irrelevant. They have these types, and initially they had them because they were going to try and get the online edition to sync with their own tax software that they put out pro series. And they were going to utilize these types, but it turned out that they decided not to do that. So all the types do is they kind of give you suggestions of some of the different bank account names because this is just a type. This is where you put the name right up here. Now watch this. If I click checking, this changes to checking. So all it is is a suggestion, you see? But I would never just use one of these names. I would make it personalized. I would go, let's see, Wells Fargo checking. And I always put the last 4 digits of the account number because if you have multiple accounts it makes it a lot easier to try and segregate things. Now you must, this description you don't need, subaccounts kind of irrelevant. You don't necessarily need to use it. This is a basics class so you won't go into it. But I do want you to know you have to put an opening balance. Now when it comes to your bank account, the balance that you put here, first of all you are going to put it as of your start date which I said 6.30, 2020. And then the balance that you put here what you are going to do is you are going to get the bank statement for June of 2020 and you are going to copy the ending balance right here. So with most of your balance sheet accounts that you will get from your report, you are going to put whatever the number is like prepaid insurance is $18.81.88 or furniture is $98.70.41. And that is what you would type. That is what you would type. Where am I? Oh, I am back up here. All right, that is what you would type right here in the balance. But when it comes to the bank accounts and the credit card accounts, it is different. You don't put the bank balance here. You put the checkbook balance as of the end of that month. You always want to start at the end of the month. So now that may very well be the bank balance. But let's look again and see here is our, the balance is $43,440. Now why might that be different from the bank balance at June 30? Somebody chat me an answer. Why might that be different? Anybody know? People are saying outstanding checks. Exactly, outstanding checks. So what you want to do is you say there is one check that is outstanding for $1,000. So if there is one check that is outstanding even though your QuickBooks balance says $43,440.26, your actual balance on the bank statement will be $44,440.26. And that is what you want to put here. You want to put the bank balance. What was that? I can't remember. There are too many 4s. 44440. Oh my God. 4444. You put the, I think there was a zero there. There you go. That is what you put. You don't put the checkbook balance, you put the bank statement balance. And the reason why, well wait before I even say that, you might say to yourself, well Greg, then my opening balance is wrong because it won't match what it's supposed to be according to my last financial statement. You're right. And so what you do after you put in this opening balance is you go into the regular part of the program where you would enter transactions and you enter that outstanding check for $1,000. With its original date which is before the start date, before June 30, QuickBooks will let you do it. And then you really will have the right balance. It will be $43. The reason why you separate the outstanding stuff, will you tell me, why do you think you would separate the outstanding stuff when you're first setting up so that you can do what? What do y'all think? People are saying to reconcile. Exactly, exactly. So this is a big problem. People will just put the balance that's on the books and that's wrong. You put the bank statement balance here. If you've entered the outstanding checks, then you can check them off when you do your first bank work. So that's really all I want to say about the outstanding balances and about the balance sheet account. So I want to spend the rest of the time or at least another 10 or 15 minutes on the income accounts and the expense accounts. But let's stop for a second and take a couple of questions. What do we got? Well, somebody says that I heard Greg say put the QB bank balance as the bank statement balance. And she said she also heard you say put the QB bank balance as the opening balance. And she was confused. Okay, then I must have misspoke. When you're in that opening balance, you want to put the bank statement balance, not the QuickBooks balance, the bank statement balance as of that start date. You always want to start at the end of the month. I started June 30. You put the bank statement balance. And then you enter the transactions that are outstanding. Next question. Many people want to know where your account numbers are. It's a big secret and I'm going to teach you that in a moment. Next question. Someone asked if they switch banks, is there a way to upload data from the old bank or they have to do it manually? If you have access to your old bank, in other words, if you have online access to your old bank, you'll still be able to link transactions to it. It just depends upon if you have online access. Because if you do, then QuickBooks does. Somebody asked that they didn't add the balances when they first set it up in QBO. Can they go backwards and add the balances on January 1, 2018? Yeah, you can go back and add opening balances, but I'm not sure if you've already entered transactions. Let me see if you can still put an opening balance. No. So once you have started entering transactions, you can't put an opening balance here. So you're going to need to do a journal entry to enter the opening balance. The journal entry is a transaction. So where do you go to enter a journal entry? I'm going to just say it. We're going to go to the plus sign because it's a transaction. You go to journal entry, and then if you want to enter the opening balance for a bank account, you're going to pick the bank account here, and to make a bank account go up, you debit it. So you put the opening balance here, and then the other side of that transaction, because every transaction has two sides, put to one of the equity accounts. You'll probably have an equity account called unrestricted net assets. If you don't, there'll be one called retained earnings and put it there. So whatever the balance says you put here, then you put the balance over here. So before we do the income accounts, I'm going to, actually, you know what, let's do the income accounts, and then I'll do it. So I'm going to show you about income accounts now. So the best way to kind of explain to you about the right way to set up your income accounts is to show you the wrong way. So I'm going to go to a data file. Let's see, it's called wrong way. So don't forget that. So what I'm about to show you is wrong. So if you're one of these dudes that's like, or one of these ladies that's like half listening, and you're like looking at something else, you're not looking at the screen, and you're just kind of listening, I don't know. Or maybe you're looking at the screen and not listening. You might get confused. But this is the wrong way to do it. Now before I show you, let me just tell you what my overall theme is here. When it comes to your income and expense accounts, you don't want to have very many. And the reason why is because if you have a ton of them, which I'm sure a lot of you do, then your P&Ls won't fit on one page. They'll have to be on two or three or four pages. And what that means is when you give that P&L to the board of directors compared to a budget, they will not read it because it's too many pages. You know that I'm telling the truth here. Maybe you don't want them to read it. Maybe you're trying to hide something. But the point is we want to give the board a one-page P&L, which means we can only use the most important stuff that we need to track, use the chart of accounts for only the most important stuff. Other things that we need to track, there's a ton of stuff you need to track like restricted grants. Don't use the chart of accounts for that. There's other ways to track that. So I'm going to save the most important stuff for the chart of accounts. So just watch how I do this and what my rationale is and I think it will start making sense to you. So let me show you the wrong way of setting up your income accounts. I think I already have a report here. I always go to my custom reports. And then of course nothing happens. Oh, I'm in the wrong. I don't know. I should be in the right data file up on here. Sometimes this is the downside of using the online edition because you're completely dependent upon the Internet. And if it's slow, or if there's issues with it, then you end up waiting. Anyway, here's the wrong way. Oh, here's some account numbers. Maybe y'all will feel happier. All right, so I'm going to tell you about the account numbers in a minute. But anyway, here's the thing. Restricted grants. You see how I have that as an income account? How many of you have grants that are restricted? Go ahead and chat if you do. And I'm sure that there are a ton of you that have restricted grants. Now look at the screen. Do not repeat. Do not have an income account called restricted grants. Don't do it. It doesn't help you. What's the most important thing you've got to find out about a restricted grant? What do you got to tell the funder at the end when it's time to report to the funder? What do you have to tell them about the grant? What are they saying? How you spent the money. Does this tell you how you spent the money? No! All it does is tell you what your restricted grants are. So A, it's not helpful. B, it's quite complicated because notice how I have a foundation grant's income account. But then at top, I have a restricted grant. Well, what if I get a restricted grant that's from a foundation? Do I put it up top, or do I put it down? It's confusing. Don't do it. We're going to use another list to track our restricted grants. And I'll just tell you it's the customer list or yours might be called the donor list. Another thing, look at the second and the third line here, the Green Truth Grant, United Fund Grant. This is the person that got all excited and created a separate income account for each grant. Unnecessary, makes a long P&L. Don't do it. There's other places to go that information, to get that information. When it comes to your income account, you should have these four, Individual Contributions, Corporate, Foundation, and Government Grants. That's it. Those four, everybody listening on the call, that's what you should be having. I know you don't. I know you have other stuff because you're different and I know people are like, oh, I need something special. You can get to something special outside of the chart of accounts list. I promise you, you'll see as we go. So these four, the reason why I like them is because this is how I have to report it on your 990. This is how I have to report it on an audited financial statement, and this is an excellent way for a board of directors, many of whom don't know the first thing about numbers, to figure out where their money is coming from. So that's what I want you to do. We're getting a lot of them. Can you repeat the four income accounts again? Okay, they're right on the screen. Individual Contributions, Corporate Grants, Foundation Grants, and Government Grants. Those four. Now then you've got, that's what nonprofits call unearned revenue. In other words, it's revenue that's given to you. Now obviously, if it's a restricted grant, you have to work for it, but nevertheless, it's the person who gave you the money as a foundation, and they're not receiving direct benefit. So it was kind of a gift to you. But then you have earned revenue. Many of you earn revenue by doing things, providing a product or a service. If you're a membership association, maybe you have member dues, or you have an annual conference, we have registrations. If you're a theater, maybe you're selling tickets, maybe you sell t-shirts, maybe you have classes that people sign up for and they have to pay, maybe you're doing consulting work with other nonprofits, all kinds of stuff. If you have earned revenue, you want to have income accounts for those as well. Here's my rule about that. Don't get too granular with your income accounts. In other words, if you have memberships, how many of you have membership associations? You have members. Go ahead and type something and let me know. I bet a lot of you do. You probably have different levels of membership. We have the retired member, and we have the affiliate member, and we have the general member, we have the lifetime member, whatever. People with red hair member, whatever. You segregate them. If you have separate accounts for that, it's going to make your chart of accounts really big. Now I want you to be able to track that level, but again, we're not going to use the chart of accounts list for it. For that, we use something called the product service list. And we can talk more about that at the end. So not too many income accounts. Don't get too granular with your earned income, and just have these main four when it comes to your unearned revenue. So that's the deal with the income accounts. Now the expense accounts, people screw up even more than they do the income accounts. And I'll tell you why. Actually, you know what? Let me stop and see who has questions about the income accounts before we move on to the expense accounts. We've got 30 minutes left. We're doing great. Who has questions about the income accounts? Anybody? What about fundraising? Is that income? A special fundraising event, you would have actually a series of accounts for, but you wouldn't just have a generic fundraising account. And I actually have a whole chapter in special fundraising events in one of the training products that we sell. I'm going to go ahead and do my little poll here by the way while you're asking questions. Somebody wanted to know what your sponsorships are. Sponsorship income, I usually do have a line for sponsorship income because it's usually related to some sort of an event. So I would definitely have one income account called Sponsorship Income. So I want everybody to answer this question please. This is vitally important. We've got 586 people on the call. What happened to 624? David, what happened to those 50 people or 40 people? Why did they leave us? Is Dale's? Please don't leave. Please stay. And look at this. Come on, everybody. I want you to answer. We're at a break now. You can listen now. We're not talking about boring stuff. So on a road trip, where do you stop for food? Burger King, McDonald's, In-N-Out, David's favorite, Taco Bell, homemade healthy snacks only. That's what I'm on now. I'm on this ridiculous diet. Arby's, Hardy's, Cracker Barrel, or oh my God, we have 37 people that live off of air and light. They're actually a person in China who claims to be doing that. But anyway, are y'all ready? It sounds like there's some sound issues. I don't know. A few people just chatted and so they lost the sound. Really? Oh, there we go. Okay, we're good. Okay, all right, good. So most people, 21% homemade healthy snacks only, complete lying. I'm quite sure. But on a road trip, give me a break. Anyway, look, David, McDonald's beat In-N-Out. I told you, Hardy's came in last. The rest of the country doesn't have In-N-Out. That's the only reason that would have won by far. Anyway, and Hardy's bringing up the rear, which is entirely appropriate. But I'm loving living off of air and light. We're up to 40 people now. But anyway, so is there anybody else that has questions before I go back in and I talk about the expense accounts? Well, I'm going to love this part. Ask a couple. I've had a few churches asking about the income accounts that you were talking about apply to them. No, not at all. For churches, it's completely different. And I think I have a church account that I can show you. Anyway, I don't know if I read you. We're having a webinar later on this year for churches. Oh, here we go, the first church. I'm so good. Let me share this. I'm going to share this again. Here we are in the church, so let's see what this chart of account looks like. I'll just go to a P&L for them. Go to Reports, Business Overview, and here's a P&L. Yours might be called Statement of Activity, and if that's the case for you, don't freak out. You're fine. So this is what I have. One for pledged contributions, one for loose offerings, one for unexpected contributions, and then miscellaneous and interest. I don't really have much more than that. But there is another thing about churches that are very unique. That's unique, and it has to do with the expenses. So I'll cover that too, since I know there's some churches on the line. Sima, are churches, they can be members now of TechSoup? I know at one time they couldn't, but they can now. Is that true? Sima, that's a good question. I'm going to have to follow up on that one, because I'm not… Yeah, see what you can find out about that, because I'm not really sure about that one. Sima, I'll find out and chat it out. Now, listen to me guys. This is the most important part of today's webinar, because this is where everybody screws up. So even though I know there's only 300-something people listening, even though there's 500 on the call, it drives me crazy, is this is most important. This is very, very important. When it comes to your expense accounts, this is where people screw up the most. And the reason why is because there are two, I'll say it again, two things that you need to track when it comes to an expense, and you're a nonprofit. One of the things you have to track is what I call the natural category of expense. The natural way of thinking about expenses like supplies, or travel, or salaries, or payroll taxes, or equipment rental, or printing, or postage, or just the natural way of thinking about expenses. Those are called your natural categories. Some people call them the object of an expense. It's literally what the money was spent on. And you'll know that it's a natural category if it's something that everybody that can speak the language, speak English, will understand. And those are what your expense accounts need to be, health insurance, dues, interest, license, and permits. And there's no wrong answer here. You can be as detailed as you want to. I wouldn't be too detailed because then it's going to make the P&L really long. So natural categories. Now there's a second thing, number two. There's a second thing that you have to track when it comes to your expenses. You have to put your expenses in one of three buckets. And funders want to know that most of your money is spent on bucket one, as opposed to bucket two or bucket three. They like bucket one better. What are these three buckets? What are the three buckets? The three ways of kind of splitting your expenses besides this natural category. What are those three buckets? Somebody tell me. All right, we've got program, admin, and fundraising. Love you, love you, love you. Programs, admin, fundraising. If you don't know this, you need to because every single solitary nonprofit in the entire country has, except for churches, by the way, churches you don't have to do this, so ignore this. But everybody else, you have to report to the IRS. You have to report on an audit. You have to report to funders. Your expenses need to be grouped into program, fundraising, admin. And funders want to know that most of your money is spent on the program rather than admin or fundraising. So what some people do, which is wrong, and if you see here, you see how this is wrong, we've got the Guidance Center Synergy Conference Aware Campaign. These are projects or programs, and I guarantee you have them. And you're not supposed to use expense accounts for that. See the one below at fundraising expenses? You shouldn't have that either, okay? Because I don't know what the literal expense was. If you put fundraising expense, or you put Go Green Guidance Center, it's like, I don't know what's in here. Is it money that you spent on travel, postage, printing? I need to know it. The board wants to know it. The IRS wants to know it. You can't do that. Your expense accounts need to be natural categories. But there's another list that you're going to use to track your programs with. And that list is called, well, y'all tell me, what's that other list? What's that other list called? Anybody know? The Class List. That's exactly right. So if you are not using the Class List to track your programs, you need to. Everybody should. So I'm going to show you how to set this up if you haven't done it yet. First of all, you go to the gear because you want to set something up, and you go to All Lists. You think you'd see Class List under here, but you don't see it. So we click All Lists, and there's the Class List. And as you can see, I've set up my classes. Go Green Guidance Center, Synergy Conference, Aware Campaign, Admin, and Fundraising. So that's basically my classes. Everybody will have at least three classes because everyone should have a fundraising class. Everyone should have an admin class. And then if you're small and you only have one program, you'll have a third class for your program. In this example, we have three programs. And programs are kind of like major things that you do in service of your mission. And once you set up these classes, then when you enter transactions, and again, this class isn't really about entering transactions so much. It's more about setup. But over here, under Customer, I'm not under Customer. Under Class, you pick your class. So see, let me move this. I don't even know if you can see this. Let me move it out of the way. So over here, I can put, I'll just pick Equipment Rental. So that's the natural category. And then over here in Class, make this a little bit bigger, I can point it for the Synergy Conference. And then underneath that, we could have the same transaction. We'll do Equipment Rental, the same expense account, but we can split it between different classes. And the same is true if you've downloaded transactions. When you're in the downloading transaction window, we'll leave it outside in here. Let me go back to my Dashboard. When you're in the downloading transaction window, these are transactions that are downloaded. They're not in QuickBooks yet. But if you click, let me click on this, Split right here, you see you can split them between different classes. So classes are very, very important. And the benefit of doing this, and you want to split every transaction needs to go to a class. And by the way, I forgot to tell you how to turn on this feature. Let me show you how to turn it on if it's not on for you. You go to the gear, and you go to Account and Settings. Those of you that are used to using the desktop, you remember where your preferences were in the desktop. They're called Preferences in the desktop. In the Online Edition, preferences are under the Account and Settings. This is where your preferences are. Preferences are little features you can turn on or off in the program. I'm going to click it. And the preferences are divided into different categories. If you go to the Advanced category, then you go to Categories down here, Track Classes, you make sure that that is on. Now you will also see something called Track Locations. But Tracking Locations is not near as powerful as Tracking Classes. You want to make sure this is on. And you also want to make sure that you can assign each row in a transaction to a different class. Now the reason why classes are a much better choice than categories in terms of Tracking Programs is because when you enter a transaction like a check, you can only put it to one location, but you can split it between different classes. And the benefit is then when you look at reports, I'm going to look at my reports, instead of looking at just a straight up P&L, I can look at a P&L by class. Now I already have one memorized, so I'm going to go here so that you can see it. P&L by class, I'm going to click it and check this out. We don't have to have very many accounts because the columns are telling us what happened in each program, admin, and fundraising. I can think of each program as its own cost center. And I can kind of see how much each program cost me. And I can also see the revenues so I can see that for instance the guidance center, I lost $11,000 on it. So this is a very powerful, powerful tool enabling you to look at your P&Ls. And you could give it to the board that way. It's probably a lot of columns. I probably wouldn't do it. We're going to show you how to enter a budget in a second. That's probably what you're going to give the board, just kind of a total, not by column like this. But I'll stop right here and take questions that you might have because this is very, very powerful. So I'll stop for a second. Who has questions about this? Can you create a balance sheet by class? No. Well, let me say this. You can create a balance sheet by class, but it's going to be awful. It's not going to work. Things aren't going to balance. And it's because of the way the programming works in QuickBooks. And I'll just leave it at that. Okay. Beth, I wanted to know, can you specify how much money to each class on a split transaction, or does it do an even split? How much money to each class on a transaction? So when you're entering a transaction, like a check, over here, you can split it. So this is where you're splitting it. And if you're the church, Beth, I don't know if you are, but churches, and I think Dale said this too, you want to track funds. You use classes to track funds, but you don't look at the balance sheet. There's actually a special report you get, and I can show you that. It's in the Beyond the Essentials training product, and it's probably what you'd want to get if you were a church, because it shows you how to track funds. Let's take one more question. What's the difference between class and location, and what is location? Well, so basically, there is no difference between class and location in terms of what they are. They can be whatever you want them to be. So let me show you where my location list is. So you can split transactions. You can have transactions to different locations or different classes. See, this says different parts of your company. I already said what the difference was, but I'll say it again. When it comes to classes, you can take one transaction and split it between multiple classes, like say you write a check at Office Depot, but some of the stuff you bought is for Program A, and some of the stuff you bought is for Program B. You can use classes and it will let you do that. If you use locations, you can't split that check up between multiple locations. It all has to go to one location. So locations aren't near as flexible as classes. It's just another way you can split your transactions. So let me do a couple of more things here. I want to talk about the account numbers because somebody was asking about that. So let me go ahead and do that now. Wait a second. I can't remember where I talk about this. I think I talk about it here. Yeah, I do. So we're doing great on time by the way. We'll be a few minutes over so you guys can ask questions, but not much. So one thing somebody noticed, a lot of people noticed actually, was that when I ran a report, let's look at a profit and loss here, that there were no account numbers. So account numbers are a way of tracking an account with a name instead of a number in addition to a name. So your accounts when you set them up will always have a name. If you want them to have a number, then you will need to turn the feature on. The reason why I don't have the account numbers here is because I don't have the feature turned on, and I did it on purpose because I want to teach you something. Now let's take a look at this P&L here. How do you feel about the way that it's organized? How is the expenses organized? In what order? Somebody tell me. Alphabetical. Right. Is that what y'all want? Chat me up and tell me. Is that what you really want to see here? What are they saying? What do they want to see? Yeah, what do they want up top? What account do you usually see up top? So they're saying largest to smallest would be… Okay, well if all you want is largest to smallest, that you can change. You see where the sort feature is here? You can sort it. Maybe you can't. Hold on, let me see if I do it in descending order. There we go. Then you'll have the largest to smallest. So that you can do. Yeah, most used would be nice. Yeah, well typically people have like the salaries up top, and it usually is the bigger stuff. So the reason why I teach this at this moment is because the only way to change the order of the list to some order other than greatest to smallest or alphabetical, but if you wanted anything other than that, the only way to change the order is to turn on the account number feature. So let me show you. To turn on the account number feature, you click on the gear. You go over to Accounts and Settings. That's where your preferences are. And then you go to Advanced, and then see where it says Chart of Accounts, click Enable Account Numbers. You enable them to turn them on, click Show, and then click Save. Now the account numbers will be on. Now remember when I showed you how to add an account before? I'm going to show you again, but this time when I go to Add an Account, go to the Chart of Accounts list, I'm going to add an account. Now there's a field that wasn't here before, and it's called Number. So that's basically where you would put the number. Now the point is once you have account numbers, then when you look at reports, and I'm going to pull up that report again, it's going to be organized the same exact report by account number. And this is how I can control how the lines appear by account number. So to create the account numbers, there's two different ways of entering them. One thing you could do is kind of ridiculous, is you could click on each one, edit it, and go in here and put a number. But it's kind of hard to do that when you're trying to get them in a certain order, then you've got to look at other numbers. So what I like to do is you see this little pencil thing right here? I'm going to click on it, and now all of a sudden I can change the numbers at random, all of them, and get them in the order that I want them to be. This one didn't have a number, I need to add it, 15, 20, whatever. So that's basically what the deal is with the account numbers. So let me teach the budgets real quick, and then I'm going to answer some more questions, and then we will finish up. So the budgets are actually really, really easy. Now we're wanting to set up a budget, so we're going to go to the gear, and actually let me change to a different company here. By the way, the people that are in Atlanta, give me a shout out because I'm in Atlanta, and it's really pretty out here, and I want to be outside and not inside. I did see a few people. Okay, see if you can get their names and contact information. I think I'm going to stalk them. I think I'm going to show up at your door talking, can you want to talk about QuickBooks? Hi, this is Greg. It's Saturday morning. Let's talk about QuickBooks. All right, so the gear, what am I doing? Oh, I'm going to go to the reports. Oh, not reports. You go to the gear. I forgot. I'm doing budgeting. I completely forgot what I was talking about. Gear, budgeting. So you click Add Budget, and now they want you to name your budget. And for those of you that are coming from the land of the desktop, the reason why they want you to name the budget is because unlike in the desktop, in the online edition, you can have more than one budget for the same year, which some people do because like they'll have their original budget, and then they'll make some changes during the year for like a new initiative so they'll create a new second budget, but they still have the original budget, and you can compare the actuals to either one. So you pick your year. This is where you can pre-fill the information which is kind of a good starting point. You pre-fill it with last year's data or this year's data. If you're in the middle of the year and you start doing the budget for the next year, you want to start with the current year's data. If your year is already over, then you want to start with last year. But anyway, I don't even do that. I just leave this at no, and then I click Next, and then this is where you enter your budget. Now they assume that you enter a budget by month. How many of you actually enter budgets by month? Go ahead and chat me up if you enter a budget by month. Not necessarily in QuickBooks, just in life. Well, in your work life anyway. Where did it even split? Is it really? So it's either month or year. So I'm going to teach both. So if you enter your budget by month, what I mean is that you go, okay, there's 4,000 this year, next year maybe there's, or next month it's 5,000. In September that's when it starts. It's a real pain in the butt. So that's why some people like to start with the prior year's actuals so that you at least have some numbers in there that you can kind of screw around with. One thing that's kind of cool is this button here. This allows you to copy across. So if you've got an expense account like where it's the same every month like rent, here's rent. So I'll go over here and we'll say rent's $2,400. And then all I've got to do is just push this and boom, it copies it all the way across. So that kind of helps me a little bit, okay? Sometimes you'll have accounts that you won't enter a budget line for, maybe they're old accounts. One thing that's kind of cool, if you click the gear, I've actually never taught this before, you click the gear, and you see where hide blank rows is. If you click that when you're done with your budget, it just shows you your budget without the blank rows so it's easier to make sure you entered everything. Isn't that kind of cool? Chat me up if you think it's cool. Now, after you're done entering your budget, anytime you want to look at a budget by year or by month, I'll show you the by year in a minute, you go to your budget screen. So we're going to go to the gear, we go to budget. It opens this up. And unlike all of your other reports in QuickBooks, every other report, you've got to go to reports, not the budget to actual reports. You've got to go into the budgets. Here they are. You're going to click it. Here's where you either edit the budget or I can copy the budget. If you want to copy this year's budget and start with that in next year, you can do that. Here's where you delete the budget, and then here's where you can run your budget to actual report. So I'm going to click it. And what it does is it gives me an actual for July, a budget for July, and a variance. An actual for August, a budget for August, a variance. It does it for every single month, and then all the way in it totals it. Now, this is something that a finance committee would want to look at. Somebody's really detailed that person on your board that asks for a million reports. I know you know who they are. Anyway, that you wish would leave the board. They'll want to see this. But your overall board, way too many columns. So what we're going to do is we're going to go up top here, and we are going to click the Customize Report button. And under Rows, Columns, we're going to switch the grid. So it's accounts versus months. We're going to make it accounts versus total. Then we're going to click Run Report. And now we've got our things that the board might actually like. Now that's if you budget by month. Now let's do budgeting by year, which is I think most people actually do budget by year. And when you budget by year, let me click Add Budget, you might be tempted to change this interval to year because then when you enter a number, you just have to enter the number for the whole year. Don't do this. This is wrong. For those of you that aren't listening, this is wrong. Because what happens is if you put in one number here, what it actually does is it takes the number and it divides it by 12, so you're still budgeting by month. So if you want to budget by year, what you're supposed to do is you're supposed to leave this at monthly, go to Next, and then you put your entire budget for the whole year in the very first month. Don't put it in the last month, put it in the very first month of your year. So you put your annual budget here for this account, you go down, you put the next one here for that account. The reason why you put it in the first month is because whenever you're looking at a report compared to budget, say you're looking at a report for the first two months of the next year and say your year begins July, so you'd be looking at a P&L actual to budget for July and August, it's going to take July as an August, actuals from the transactions that you're entering, and then it's going to compare them to the July and August budget column. So if you don't have anything in the July and August budget column, it's over for you. So you won't get a budget column. So that's why on your reports you've got to pick the very first month. So then when you look at the report, we'll pick one, this is my budget by year and I'll run it. It's still going to give you the columns by month, but you've got to go over here, click Customize, click Rose Columns, make this account versus Total, click Run, and then you have your report. So we're at 331. I want to take a few questions, but there's something more important that I want to cover. I'm going to go back to the slides here. And I want to point out something that I – because based on the – well, there's two things actually. One thing is this, not this, not that. Where are my – let me see where my codes are. I've got to show you those codes. What? Oh, good. Okay, great. So here's the deal. And I can tell from the questions there are a ton of you that could very well benefit from a three-day webinar. Now it's two hours a day for three days. If you think I'm interesting, you'll like it, okay? Now it's $199 normally. We're going to give it to you guys for $149 provided that you sign up by Saturday and you get $50 off. So instead of $199, it's $149. We'll be able to get into a lot more. It's kind of cool because you do it for two hours and you've got 24 hours to play around and think about it. Then we come back the next day and we do it again. So there's your code. It's not in the TechSoup website. It's at the QuickBooks Made Easy website. So you go to QuickBooksMadeEasy.com for that. If you want the training product, we have a training product. If you don't want to sit through a webinar, you want to get a training product, you can get that from TechSoup. It's $109. It's normally $299. So we're giving you $190 off. So that is very cheap and you get that from the TechSoup website. And then finally, if you want TechSupport, you can actually get a year of unlimited TechSupport where you can call us with questions. We can even dial into your software. It's only $199. For you guys, I would recommend the 3-day webinar series. I think that's probably the best thing for you to do. It's happening May 15th through May 17th. That's a Tuesday, Wednesday, and a Thursday. So let's take a couple of three questions and then finish up. So David or Seema, I'll turn it over to you Seema in a second, but who has questions? David, could you show adding an account receivable transaction that is outstanding at the beginning as well as setting up balances? Well, that's a little detail. Okay, so it's a good – No, no, no, I got it. So when you are entering opening balances for accounts receivable or accounts payable, it's best to just enter the invoice or the bill in QuickBooks with its original date. So whatever the outstanding invoice is, you enter that outstanding amount in a QuickBooks invoice. That's how you'd handle it. Next question. How do I make it be donors instead of customers? Oh, okay. I can show you that. Well, it's a setup thing. So you go to the gear. Y'all are still with me, right? Don't go anywhere. We're going to keep learning. You go to the gear, and you go to account settings, and you go down to advanced at the bottom. Whoops. Why did that happen? I have to sign back in again. Sorry. There we go. Let me get back in here. Sorry. It's a preference or a feature that you turn on. So you go to the gear in the upper right, and you go to account and settings. This is very, very frustrating. See, this is what drives me crazy about, look at this, David. What's the next question? You know you may take longer when you hit the little circle. Oh, are you getting smart with me? I saw you hit the little circle. I'm like, well, that makes it take longer. How many people were annoyed with me like David? Chat me up if you were annoyed with me like David. I'll do what you say. Look at this. Let me just say this, it's in the preferences. If you go to the gear, you go to account settings, click on advanced, and it's all the way at the bottom. It's called donor category or something like that, customer category. Okay, next question. Yes, that's just taking it. You're going to hit the little circle again. Budgeting by class with the question mark. There we go. Oh, it took you out of your hand. You can budget by class. Yeah, it's not going to let me do that. You can budget by class. No. You can budget by class. When you're in the budget screen, you'll see a category field at the right that says don'ts. It says subdivide by. And you can pick either class or job there, and then you can do a separate budget for each class. Next question. Do you think it's a smart idea to integrate with PayPal? They heard it was a bad idea. I do not think it's a good idea to integrate with PayPal because when you integrate with PayPal and you integrate with your bank, you better know what you're doing because QuickBooks picks up the PayPal transaction, and then QuickBooks picks up the bank transaction, and many people who do it end up with doubles, and their income's doubled. And I've seen it a bunch of times, so I'm not a big fan of linking the PayPal account. Next question. Get it from the bank. All right, I think we have time for maybe just one more question before we wrap up. Okay. I have an important question. Why didn't he list his programs as a subset of programs so you get a total for all programs expenses on your 990? Oh, he totally – I totally should. I agree with you completely. I usually do it. I just didn't have a chance to teach it, but exactly. You can have subclasses. And if you have a program with the programs as a subclass, then you'll be able to get the total of all your programs. Additionally, some people like subclasses anyway. You know, you got like a program called Education, but then underneath it you have like three or four workshops and you want to see them separately, so you can make them a subclass. You can go in five levels if you want to. Maybe more. I haven't tried it in the online edition. You should try it sometime. Well, I think we've answered over 215 questions and we're running out, so if you want to wrap it up, Seema. Yep. Are you good, Craig? I don't know. I think I want to keep going. No. We have another one next week, so I'll let you – We'll see you on May 15th through May 17th. May 15th through May 17th. The one on the 15th as well. That's February. I mean, Mark. All right, so thank you, Craig, for presenting today. Before we go, if you guys could just chat one thing that you learned in today's webinar, it's always helpful for us to see that information so that we know what to teach in our upcoming webinars and what you guys really want to learn. Also, you should be getting a post-event survey, so if you have any feedback for us there, that also really helps us. We're on social media, so if you guys are on Facebook, Instagram, or Twitter, please give us a follow. And we also have a blog where we post a lot of tips and tricks and how-tos and important information at blog.techsoup.org. We have another webinar with Greg next week as he just mentioned on 315. So that is QuickBooks Online for Existing Nonprofit Users. And then we have two more webinars in March, So Cloud Identity for Nonprofits, How City Year, Dreamlines, User Access to Advanced Submission, and then also Digital Fundraising Tools and Trends in 2018. So just again, I want to thank Greg, David, Megan, Lashika, and Allison who are all answering questions on the back end, and Greg and David for their information over the phone, and also to our webinar sponsor, ReadyTalk. Again, we'll be emailing this out and it will be hosted on our website if you have any further questions, feel free to email us. And that's it.