 Welcome to QuickBooks for New Nonprofit Users. My name is Becky Wiegand, and I'm the Webinar Program Manager here at TechSoup where I have helped run programs like this for the past nearly 7 years. Prior to that I spent a decade working at small nonprofits in Washington, D.C. and Oakland, California. I was regularly the person having to make tech decisions and reconcile accounts without having much experience or training myself. So I've been in your position, and hopefully today's webinar will provide you with enough expertise to dive in and start using QuickBooks for your own organization's benefit. Our expert joining us today is Greg Bosson. He's 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 specifically designed for the nonprofit community. So he is really considered a national expert on this program, and we're really glad to have him joining us. You'll also see in the back end helping manage chat questions, Alison Bliss and Ali Bezdikian from TechSoup. You may also see Louis Height from TechSoup and Katie Peterson who will be helping answer accounting related questions and David Webb who's also from QuickBooks Made Easy. So keep an eye out for them. Feel free to chat into us to let us know where you are. TechSoup, we're here in sunny San Francisco today hosting this event, and Greg is joining us from Atlanta. So go ahead and let us know where you're calling in from. Lots of people all over the country joining, and I know you can't see the chat question, so if there's anything particularly useful, we'll make sure to chat it back out to you. A look at today's agenda, we will cover TechSoup and QuickBooks Made Easy in a quick introduction. And then Greg will take us through a live walkthrough of how to get started, how to set up lists, and then we'll have a good chunk of time toward the end to help answer your questions. We have nearly 1,000 people in the room with us today, so this is a big event. So just keep in mind that we will probably not be able to answer every single question that comes in. And we have a second webinar for existing QuickBooks users taking place next Thursday, March 5th. We'll share a link out for that if you're interested in joining that. And after that, we'll have a live forum chat taking place on TechSoup's Community Forum where we can continue answering questions about accounting and QuickBooks. And you can go today after the webinar if we haven't had time to answer your questions, to ask them there, and you'll be able to expect answers next week. So a little bit about TechSoup. We are a global network of 63 partners serving technology, resources, and knowledge in more than 120 countries around the world. And we are doing this by delivering technology donations through our partners with companies like Intuit that provides QuickBooks and groups like QuickBooks Made Easy to nonprofits and social do-gooders around the world. We have done this to the extent that we have now served more, nearly $5 billion in technology products and grants to the social benefit sector. You can learn more about our programs at TechSoup.org. Now jumping into the content of the day, go ahead and pick one on this menu. I'm not providing any context. And Greg, if you want to provide some context, you're welcome to jump on the line and do so. Greg The context would be that I like eating. So that would be the context. Linda Don't we all? I mean, we've got so many people. I thought it would be interesting to see like what the responses would be. We have some people commenting, whatever is vegan, we probably should have included a nice garden salad or something. I know, I know. You suggest that. But can't you get sushi vegan? I think you can, right? You probably can, yeah. So we have a lot of people responding. And like I said, we have now more than 1,030 people in the room with us. And a lot of people liking all you can eat shrimp and cheesy New York pizza. Not surprising. So I'm going to go ahead and just show the results which many of you probably are already seeing on your screen if you've submitted your responses. Lots of hungry people out there and a small amount of people who are on a diet. That's hilarious. It's pretty split evenly. And 178 people are up for sushi. So that's cool. Almost 1,000 people are responding already. This was just to keep it a little bit fun at the front end. But I want to go ahead and have Greg tell us a little bit more about QuickBooks Made Easy so that we can dive into the live demo and get you on your way to using and setting up QuickBooks for your nonprofit organization. We're glad to have you all joining us. And very grateful for Greg for taking the time out to do this training with us. Great. Thank you so much. I appreciate that. And thanks to everybody that's helping, especially just a shout out to Katie Peterson who will be helping to answer some of the chat questions. She is an associate trainer with us and she's also the owner of Peterson Business Services. So thanks, Katie. And as far as myself, my name is Greg Boston again. I'm a CPA with an accounting practice in Atlanta. I specialize in nonprofit organizations. We do a ton of work with nonprofits and I also am the owner of QuickBooks Made Easy. And QuickBooks Made Easy is all about industry specific training. And basically we are trying to help people in various industries. And the main focus to be frank with you these days is nonprofit organizations. We're helping to teach nonprofits how to use QuickBooks to track the special things that you guys need to track. So we do it in three ways. One, we have training products that we have for sale. And I'll pop over to the website in a minute and I'll show you what they are because you're going to get pretty big discounts for going to this webinar here. We also have full year tech support where you can call. We can even dial into your software and we can help you with your QuickBooks questions as it relates to nonprofits for an entire year. And then finally we do live seminars across the country. And actually these are some of the cities that we're going to over the next couple of months here. We go to about 17 or 20 cities live. So if you are interested then you can click on the link there and you can sign up. But obviously you want to see if I'm any good first right before you do it to see me live. So I told you that we're going to give you some nice little coupons here, our discounts for some of the stuff that we offer. And we have three things. We have the biggest one I want to talk about is the unlimited tech support. So we offer tech support. It's $2.99 a year. It's $1.99 if you use this little code when you go to buy it at our site. But we're actually going to offer it for $99, which I know sounds crazy. But we're going to do it for those of you that came to this webinar. We're going to offer you a year's worth of tech support with a CPA based here in the United States that knows nonprofits and knows how to use QuickBooks. It may be me that's your tech support person and we're going to do it for $99 for a year. Then we have discounts on the products that we have beyond the essentials is $179 with this code, and then $20 off of any class. So I'm going to go ahead and share my screen. And I'm going to take you over to the website for QuickBooks Made Easy. And then there we go. So you should be seeing the screen now. And our products are here. Our tech support is here. And our live seminars is here. So you just go to QuickBooksMadeEasy.com. And the tech support, again, we're going to give away for $99 with a little code. I'm going to tell you what it is towards the end of the seminar. So I think that's basically it. So with that, I'm ready to start. So the first thing that I want to do, I'm going to go ahead and start here. I want to start at the very beginning. Oh, actually, I think we have another poll question here, don't we? We do. We want to make sure that people, we have so many people joining today, and we know that there are a lot of different versions of QuickBooks out there. And so Greg is going to give us a little bit of background about what QuickBooks is for. But we also want people to respond. I don't know if you're still able to respond to this since it looks like a lot of people responded when we were testing it. So I'll have to pull this up again. But today we're going to be showing on Greg's desktop he has installed QuickBooks 2014 installed version. So that's what we're going to be – Is that what I'm – I'm sorry. I thought that's what I said. QuickBooks 2015 is what we'll be showing it on. If you're on an earlier version or using the online version, like a lot of the principles that Greg will be covering today will still be applicable to you, though the screens may look different. If you're in the online version, I know that there are some parts that look pretty different because it's just a very different interface. So keep that in mind that we have so many people we can't necessarily serve every version in one webinar. So we want to make sure you know that, but a lot of the basics should look the same. All right. Thank you. And go ahead. We'll just leave this slide up. They can see the poll, correct? Can they see the poll? They can see it, but it's not letting anybody participate in it. That's fine. That's fine. But that's okay. So let me just tell you one thing, guys, especially for those of you that haven't purchased the software yet, that there are different versions of QuickBooks. So I just wanted to cover that for a second. And every year they come out with a new version of the software. I'm going to be teaching with version 2015, but every year they make changes, but the majority of the program is the same no matter what version you're using. So if you have an older version of the software and you've come to this webinar, don't worry, you're going to learn everything is cool. The other thing is that when they come out with a new version every year, they have five different choices actually. One of the choices, and I have it here in parentheses, is called QuickBooks Pro. And QuickBooks Pro is kind of the basic QuickBooks. That's not what I'm going to be teaching with, but it will work fine for your nonprofit. So if that's what you have, not a problem there. Then there's the Premier Nonprofit Edition. That is what I'm going to be teaching with. And if you've got that version, and those are the first two in this little poll here, 2015 QuickBooks Nonprofit. That's the Premier version of Nonprofit. That's what I'll be teaching with. That's the one you can get from TechSoup. And it's actually the cheapest way to buy QuickBooks. And I'll take you to the website and show you where you go to do that in a minute because it looks like a lot of people haven't even bought the program yet. If you have QuickBooks for the Mac, you can purchase QuickBooks through TechSoup as well. And then we have the online edition. So some people have the online edition. The screens look different, but as Becky was saying, the techniques are the same. So I will pop up the online edition if I get a chance to and show you what it looks like, but not to worry, you'll get what you need out of the seminar. The fifth option is Enterprise Solutions for people that are really large. That's a fairly expensive piece of software for businesses that are really large. So the vast majority are using the nonprofit edition. So that's what I'm going to use. But regardless of what you use, you're going to be fine in this seminar. So let me go ahead and share my screen. And for those of you that have not purchased QuickBooks yet, the place to go is TechSoup. And I like to start real basic. So we go to www.techsoup.org. And then in the search field, you're going to put QuickBooks. Those of you that already have QuickBooks, just bear with me. I'll only take a second. I'm going to click this. And you will find in the search, of course, you want to log in with your member login. But once you're in here, you'll see all kinds of things that relate to QuickBooks. We have one of our training products which is $229 normally. You can get for either $39 or $99 through TechSoup. And then we have QuickBooks for the Mac. And then we have QuickBooks for the desktop. They have a version 2014 and a version 2015. I want you to get, if you haven't bought it yet, version 2015. You get it through TechSoup here. If you are the only person that's going to be using QuickBooks, you want to get the single user license. If you have more than one person that's going to be using QuickBooks, then you want to get the three user license. Now if you are the only person but you want to load it onto two machines, your home and your office, or your office on a laptop, the single user is fine. Don't worry about it. It's only if you want to have more than one person using the program at the same time that you're going to need a three user license. It retails for $750. You can get it at TechSoup for $99. So I'm going to click View Details. And you will simply log in, add it to cart, pay for it, and then it will download. So it's downloaded to your machine. You're not going to get the thing in the mail. It will be downloaded. Once it gets downloaded into the machine, like I said, I like to start at the beginning. What you're going to be looking at actually, you're going to be looking at a screen similar to this once you load the program. Now these boxes at the bottom here, they're going to be bigger than they are here. But you're going to get three options. One option is to create a new company. A second option is to open or restore an existing one. And then the third option is to open up a sample file. I want you to play around in the sample. So you click Sample Nonprofit Organization and you open it up and you play around with it. So let's go ahead and do that. So before you ever even set up your company, I want you to play around with the sample file. So I'm going to go ahead and open up a sample file. And when that opens up, I wish I could hear everybody. I don't think I've ever spoke to a thousand people before, at least not through a webinar. And now it's up to 1,100. While you're opening this up, I just want to mention that Intuit, which donates the QuickBooks premiere through TechSoup, has recently opened up their program to make it available to religious organizations and churches, mosques, temples. So if you're joining us from one of those types of organizations, know that that donation is now available to you as well. So it's very exciting because it really brings it to a whole new category of organizations out there doing good work. So on with the show, Greg. Thank you for having me. All right. You can go back to there. Okay, so let's get to some meat, okay? We like to talk about the details here. So here we are in the sample file. And again, that's what I want you to start with is playing around in the sample file. And this is the desktop edition. And I do want you to see how completely different it looks than the online edition. Let me go to the online edition. Here's the online edition. Look at this versus that. Very different, all right? So here comes the desktop edition. So the first thing I want to do is get you comfortable with the screens, all right? So what we've got here, let me move this out of the way, what we have here is the very top bar is called the title bar. And the title bar is telling us two things. The first thing it's telling us is what version of the program we're in. As I told you, I'm using QuickBooks Premier Nonprofit 2015, all right? But the other thing it's telling us is what data file we are in. We are in a company file or data file, I'm calling it Synergy Now. So let me just stop for a second and explain something to you. You know how in Microsoft Word where you have the program Word, but then you have multiple documents? The same thing is true with QuickBooks. If you have QuickBooks, you have a program, but then you have your data file. These are two separate things, all right? What I'm trying to tell you is you may have more than one company that you're working in. You may have three or four organizations. I'm going to count now. I have like 50 or 60, okay? And it's free. When you get the desktop version of QuickBooks, you can run more than one company file, all right? How many people are running more than one company file? Just chat me up. I can't see the chat, but Becky can tell me if you're running more than one company file, say something or put the number. I'm curious to see. I'm sure there are a number of people that are doing it. So the thing about this is if you have more than one company, you probably want to make sure you're in the right company, which is why the name of the company is here. If you are running more than one company, I should say this first, when you open up QuickBooks, what it does is it opens up the program, and then it opens up the last data file that you were in. And they do that because most people only have one data file, but if you have more than one data file like I do, then it's going to open up the last data file you're in. If that's not the data file you want, you click File, you click Open Company, and you browse just like you would in Microsoft Word to where your other data file is. And so here's all my data files we're going to be using some of these today. And then I'll click Open. So Greg, we had about probably 40 or 50 people chat in that they run two or more companies. I think the most I saw was somebody listed that they ran 10, and another person said 6, but lots of 2s and 3s, so lots of people are running multiple companies. Greg, a lot of times you'll have a nonprofit that has like a membership association that's a 501C6, and then you'll have a charitable arm which is a different organization which is a 501C3 that can collect donations that are tax deductible. So I'm not surprised that I see that, so that makes sense. I'm going to get rid of this here. All right, so let's see. So that's the title bar. Everything else you see on this screen is basically the different ways of getting around in QuickBooks. In other words, I've opened up the program. I want to write a check. How do I get there? Well, there are three screens to do that in. There's the home page right here, which is a flow chart of the major tasks that you'd like to perform. All right? If I want to write a check, I click Write Check, I click it, and a picture of a check pops up. Notice the check number. It's check number 1004, so don't forget that. Okay? There'll be a test later. All right. So that's one way of getting around the home page. The second way of getting around is this bar on the left. This bar is called the icon bar, and it is going to give you shortcuts to major things you want to do also, and you scroll up and down to get to the list. Here's the check here. I click on it, and notice that the same check popped up, check 1004. It's kind of highlighting these are different ways to get to the same place in the program. Does that make sense? I hope so. I'll assume the answer is yes. I'll also assume that you all love me. All right. So anyway, that's the second way of getting around the icon bar. Now the icon bar, you see how it takes up a lot of space? Well, look at this arrow. If you click this arrow, you can move it, so it doesn't take up as much space. The other thing that you can do if you don't like it is if you click on View, you can move it to the top, top icon instead of left. I'll click Top, and now it appears on the top. The reason why I like to do that is because, guys, this is what QuickBooks was like for years. It was on the top. They only changed it to the side recently. I'm old school, so I like to have it on the top, so I'm going to teach it on the top for the rest of the seminar. I hope you don't mind. You have no choice, no matter. All right. Anyway, so that is two of the three ways of getting around, the home page and then this bar here, which is the icon bar. That leaves the thin bar up top. That's the third way of getting around. And somebody chat and tell me what the name of that is. I like some participation here. So Becky, does anybody know what the name of this thin bar up top is? Becky- I am waiting for responses. Somebody says Menu, Menu, Taskbar, Ribbon. Lots of guesses here. Gregg- Yeah, I like the name. Taskbar, that thing down here at the bottom that has to do with your operating system. So this is actually called the Menu bar. And the Menu bar gives you absolutely everything that QuickBooks does. So if you're a new user, start by using the home page because it keeps you doing stuff in the right order because it's like a flowchart thing. Once you get good at QuickBooks you can use the Menu bars. So what I'm going to do here is I'm going to go, they're organized by area, and the Menu bar gives you everything. If I'm going to go under Banking, that's where I'll find right checks. I click it and it's the same check number, 1004. So now you're comfortable with the screens. You've got the home page, you've got the big fat icon bar, and then you've got the Menu bar over here. Now just for the online users, go ahead and chat me up if you're an online user just so I know if there are any. I think there are a few. You guys, you don't have a nice little flowchart where you'll go to do most of your stuff is this little plus sign up here. Think about this. If I want to add a transaction you'll go to the plus sign and here's where your check is right there. Anyway, I'll go back to the desktop. All right, so home page, big fat icon bar, Menu bar, Title bar, that's it. The only other thing I didn't discuss is this junk over here on the right, and I call it junk because it's not really that big of a deal. It gives you some balances in like your bank accounts and your receivables and payables. The rest of this is an advertisement. You see where he says accept credit cards? Well, I mean, QuickBooks has an incredible merchant service by the way, but if you click this it's just going to take you where to go to sign up for the service. So if you're new to QuickBooks and you're feeling freaked out, you can just move this off the screen and then you'll feel better. But anyway, so that's basically everything about getting around in QuickBooks. So now that we've done that, I think I'm going to go ahead and show you how to set up your company. All right, so I'm going to go to Create a New Company. So that's pretty obvious. So I'm going to go ahead and click it and click Yes. And it's really easy to create a new company file in QuickBooks. It's really, really easy. Oh, I should tell you, remember how I said you can have more than one company file in the desktop version and it's free. If you have the online edition, it's not free. You'll need to pay for each additional company that you're going to have in QuickBooks. So anyway, so let's set up your business, answer some basic questions, and we'll do the rest. So I'm going to click Start Setup. And it just is going to ask a few questions. My new nonprofit. Now it may not be a new nonprofit, but it's a QuickBooks that's new. All right, now the only fields that need to be filled out really are the ones that have the little red asterisks next to them. But anyway, so you put your business name, then you put your industry. Now let me just give you a little help here. At this point, you're going to be trying to type your industry. I'm a theater. Well, when you press Tab, it's going to say Invalid Industry. It's like, whoa, what do they call it? Maybe it's a Playhouse. You'll drive yourself crazy. Let me just tell you, there's a certain set of industries that you've got to pick from. So do yourself a favor and just click this Help Me Choose. When you click it, it's going to give you a list of the industries that QuickBooks wants you to pick from. They're going to be two of them that relate to you. And look at this, Becky. There's one here for church and religious organizations. So that's kind of cool. And then if you're not one of those, then you're going to be nonprofit. So those are the two that you'll choose. Now why do they want to know what industry we're in? The reason why they want to know what industry you're in is because they're going to give you a set of accounts based on the industry. The accounts for a nonprofit are very different than they are for a manufacturer. And I'm going to show you how to set up accounts in a little bit, but they don't want you to start with zero. They want you to start with something. So they're going to give you some accounts. These are the accounts that you get when you're a nonprofit. They're not going to be perfect. You're going to want to change them. You're going to want to add to them. Make them be your own. All that's cool. We're going to learn that in a minute, but at least pick this so that at least you have a starter set that you can work with. So I'm going to click OK. Business type. Now listen carefully guys. Listen to me. You're going to want to put nonprofit because that's what you are. Don't do it. Here's why. The reason why they want to know what your company type is is so that it knows what tax return that the company files. And the reason why that's important to them is if you are an accountant and you have purchased a tax software from Intuit and you're going to do your own 990, then there's an export feature that will export from QuickBooks into your tax software. Now you're not going to do your own taxes 9 times out of 10. Even if you are, is it going to be the tax software that you buy from Intuit? Probably not. And even if it is, are you going to want to use the export? I don't use the export because there's issues. It works okay, but there are certain things that don't export. We've just decided that it's easier not to use the tool. So you're not going to be using the tool so there's no need to check what company type you are. If you check nonprofit, what it's going to do is every time you create an account in your chart of account, it's countless. It's going to want you to tell it what line on the 990 that account is supposed to export to. You don't know that, right? And you're not doing your own 990 anyway, so forget about it. So just click other or none. Click okay, and you're good to go. So that's really all that I have to put. I'll go ahead and put a couple of other pieces of information. I'll put my ID number here. If you don't have it yet, you can leave that blank. You can fill it in later. You can put your business address here if you want to. And let's see, this is actually Katie, the one who's helping us. This is her home. So feel free to show up at her house if you have any questions, and she'll be glad to help you out. I'm kidding. Hopefully. Yes, nobody should really show up at Katie's house. Everyone should show up at Katie's house. Party at Katie's. Let me give you her phone number. All right. She's a hero on the back end. She's really answering a million questions. So thank you so much for doing that, Katie. Oh, that's great. That's great. Now of course she has no idea what she's talking about. So none of the answers are correct, but that's why she's so quick at it. Quick at it and good at it. All right, I know I'm really bad. Create company. So I'm going to create the company. And literally guys, that's all you have to do is create your company, at least part one of creating your company. It's creating that file, kind of like creating that Word document. And all you did was give it some basic information, tell it what industry you're in so it can give you a chart of accounts to start with. And here is our new file. And if you look up, well before we do that, there's a little bit of an advertisement here. It's about to pop up. There it is. More things that you can buy. You can get paid faster. That's the Merchant Service to QuickBooks, which is really good. Here's the Payroll Service to QuickBooks. Here's Buying Your Checks from QuickBooks. So I'm just going to go ahead and click Start Working. And if you'll notice, there are these kind of, I cannot stand this color. I don't know what you call this, Tope Camel? I don't know. Anyway, so these are giving you little tips on what's new in QuickBooks. But if you've never used QuickBooks before, then knowing what's new in 2015 isn't really helpful to you anyway. So I'm just going to go ahead and dismiss this, and you're going to get how to use this for me. So don't worry about it, all right? Hey Greg, before you move forward, I've had a bunch of people in a row ask, can you change your business type if you've already set up the company? If you put it in as something else and you want to switch it to nonprofit, are you able to go back and change that? Okay, let me just explain this to you. The question is, can you change your business type? No, you can't. But indeed, it's irrelevant because the only purpose of changing your industry, of putting an industry in, is so it gives you a chart of accounts list. So you're going to change that list anyway to make it be your own, and we're going to show you how to do that. Now, if you absolutely want to start with the nonprofit list, then go ahead and set up a new company. Then you'll have to set up a new company and go through the interview. But I don't think you need to. Just take whatever list you have in the chart of accounts list. I'll go over to lists, chart of accounts, and work on changing it to make it be what you want it to be. And that's what we're going to talk about next. Well, almost next. Before I get into that, I need to do a little accounting lesson for you so that you can understand about accounting. So let me just explain something here. So listen carefully. Hopefully you're listening. Anytime you go into QuickBooks and you go and enter something in QuickBooks, it's going to be in one of two categories of stuff. Either the thing that you're entering is going to be something that's in one of the lists in QuickBooks like the chart of accounts list. Maybe you want to add a new expense account, or maybe you want to go into the customer list over here and enter a new donor, member, or student. So those are list things. And that's one thing that you're going to do, and we're going to set that up now. The other kind of category of stuff that you enter when you're in QuickBooks is transactions, like a check, or a bill, or deposit, what have you. The reason why people don't get good reports out of QuickBooks, and that's why you're here. You want to learn how to get good reports out of software. It's not because they don't know how to enter transactions. It's real easy to enter transactions in QuickBooks. I mean, here's a picture of a check. You just fill it out. Well, we have to open up the bank account first. But the reason why people don't get good reports is because they never set their lists up correctly. And the most important list of all that you need to set up is the chart of accounts list. So what we're going to do is we've set up a new company file, but we really haven't really finished up setting up our company so that we can start using it. So I need to give you just a little accounting lesson. So I'm going to go over to another data file, and I'm going to give you a little accounting lesson. It's going to take about three minutes. I promise it will be painless, kind of like a spinal tap is painless. And to those of you that don't understand about debits or credits, this is going to be very helpful to you. So the whole purpose of accounting is to create two reports. What are those two reports? Somebody chat me up and tell me what those reports are, Becky. What are the two reports that accounting are all about? Profits and loss and balance sheet. There you go. Profit and loss is one of them. Even I knew that one. That's exciting. And then the other one is called the balance sheet. So these are the two reports that make up your entire purpose of doing accounting. The whole purpose of accounting is to create these two reports. The balance sheet gives you a snapshot of what your organization looks like at a point in time. This was June 32, 2020. Think of it like a camera, like somebody took a picture. And it's made up of assets. That's all the stuff you have, like the money in the bank, and you fixed assets, and stuff. It's made up of all the money that you owe. That's all your liabilities. And then the difference, which is equity. So the balance sheet gives you a real good picture of what you look like at a frozen point in time. How much you have, how much you owe, and then the difference. And you hope that the difference is a positive number. You hope that you have more than you owe. Anyway, the other report is a profit and loss. Profit and loss is more like a movie of transactions over a period of time. This is for one month, a month of June. And you can actually change this date. I can make it this fiscal year. And this is what most people are used to when they think of financials, the profit and loss. It's made up of all the money coming in over that time period that's income, all the money going out. That's expensive. So these two reports are all that accounting is about. The balance sheet shows you what you look like now. The profit and loss gives you a movie of transactions over a period of time. Accounting, the nuts and bolts of it. Listen carefully. This is it. This is where the rubber meets the road here. All accounting is, is entering transactions so they get to these two reports. Every time you enter a transaction, even a check, it gets on these two reports. And it gets there by going through one of the lists in QuickBooks. And that list is the chart of accounts. The chart of accounts is the backbone of your entire accounting system. Every single transaction that you enter hits at least two accounts in the chart. Maybe more, but at least two. And then the lines on this chart are the very lines that make up the balance sheet and the P&L. So if we enter a check, it hits at least two accounts in the chart. One is the bank account up here. Could have picked savings, but I didn't. I picked checking. The other account is whatever the expense account is that you pick here. I'll pick rent. When you go to the chart of accounts list, you will see here's the checking account. And if you scroll down to where the expenses are, here's rent. So every single transaction hits at least two accounts on the chart. And then the lines on this chart, guys, they are the lines that make up the two financials. You see how on the balance sheet it says checking, savings, and then membership receivables. Where did that come from? Chart of accounts. Checking, savings, membership receivables. So these accounts are broken up into different types. We'll talk about the types in a minute, but every single type that is equity and above appears on the balance sheet. Every single type that's below equity appears on the P&L. So what have we got here? Individual Contributions Corporate Foundation Grants. We go over here, Individual Contributions Corporate Foundation Grants. So you see, since the chart of accounts determines what these financial statements look like, it's your most important list of all. And we've got to get this set up right, and that's what we're going to discuss. Because you're going to print out this P&L compared to a budget and give it to the Board of Directors once a month. You also should give them a balance sheet. So having said that, let's go back over to our other data file and let's take a look at the chart of accounts that they gave you, and let's talk about how to make that into the chart of accounts list that you should have. So we're going to talk about what your chart of accounts list should look like. I'm going to go over here to view and move this to the top, because again, I like it up top. All right? That doesn't sound appropriate, but anyway, so let's hear somebody talk about that. All right, so we'll go to reports. Actually, we'll just go to the chart of accounts list. So here's the chart of accounts list. Now the first thing I want you to notice is that these accounts have numbers. You don't have to use account numbers if you don't want to. The reason why some accountants like you to use numbers is because it makes it easier for them perhaps when they're keep punching because they can type a number instead of a name. Well, account numbers are not necessary. I don't care for them because every time you create a new account you have to try and figure out what number it should be so that it gets stuck in the right place in the chart, and it's a pain, and it's not useful, and the numbers show on reports. So what I'm going to tell you to do is go to Edit. You don't have to do this. Go to Preferences. Preferences are little features you can turn on or off in the program. I'm going to click it. I'm going to go over to, and these are the preferences. There's so many of them. They're broken into different categories. Here's the general category, and a bunch of stuff here, and the checking, and a bunch of stuff here. I'm going to go to Accounting. I'm going to go over to Company, and I'm going to click, you see where it says Use Account Numbers? I'm going to uncheck that. I'm going to click OK. Now the account numbers are gone. So it's time to finish setting up the chart of accounts. Now the first thing I'm going to tell you is that even if you don't know anything about what you're doing, you probably have figured out that you need to create an account for your bank account. So let's go ahead and do that. So that would be the next step in the process after you set up your company as you would add your bank account. So I'm going to go over here to Account, and I'm going to click New, and this is how you add an account. I'm going to click New. Now it's going to ask what the type is. The types are really important when you're creating accounts. If you pick Income, that's going to appear on the Income Statement or the P&L. So it's very important that you understand when you create an account, you understand what type it is. If you don't know, talk to your accountant or bookkeeper. These accountant types are second nature to accountants or bookkeepers, or the person doing your 990. Now QuickBooks tries to give you some help by saying, okay, Income accounts, those categorize money from normal business operates. We want a bank, so we're going to click Bank Account here. I'm going to click Continue, and then I'm going to name it. And what I usually do, you can name it what you want. I usually name it the name of the bank, Wells Fargo I'll pick, and then Checking. Now the rest of this stuff that's here, the description, bank route, bank account number, they're optional. Some people get into this thing where you feel like if there's a field, if you don't put something in it, you're going to die. Don't worry about it. This is QuickBooks Made Easy. All you do is pick the type, name it, and you're good to go. So I'm going to click Save and Close. And now you understand how to create an account. So before I go any further with what your account should be and how to create them, there is one point that I need to make. Okay, listen very carefully. What you've got to decide before you start setting things up here, after you've created the company, is you have to decide when you're going to start using QuickBooks to track your transactions. So today is February the 26th. So when are we going to start using QuickBooks to track our stuff? Well, if your year end is December 31 of 2014, then I think that's a really good day to start using QuickBooks January 1st of 2015, because then you'll have a whole year of transactions in the same place. And you only have to enter like a month and a half to get caught up. Now if your year end is June 30, then if you say I'm going to start as of July 1, that would be July 1, 2014. Now you've got 8 months of transactions to enter. But guys, I don't know that that's such a bad idea because it's going to help you get good at QuickBooks to enter those transactions to get caught up. Now if you're saying, Greg, you're out of your mind, I'm not doing that, then you can pick any start date that you want to start using QuickBooks but make it at the end of a month. Please make it the last day of the month. So we'll say that – and actually there's one more thing you've got to do. When you pick your date, say we're going to pick June 30, you have to get the opening balances on your bank account and your other accounts as well. So to do that, you have to go to your accountant or your bookkeeper and get the financial statements from that start date. That's why I want you to make it at the end of the month because financial statements are usually at the end of the month. So I have a little start date, a little balance sheet that I got from the former accountant or whoever it is that does my books saying, okay, we're starting June 30, 2020. I asked them to provide me with this balance sheet and it gives me all the balance sheet accounts with their opening balances. So you've got to have that before you finish setting up. You've got to decide the start date and you've got to get the balance sheet or some people get another report called a trial balance that will give you all of the balance sheet accounts and what the opening balances are. So once you have that, go back into QuickBooks. See the checking account. Do you see how there's zero balance in it? If you just started entering transactions as of July 1, your bank balance would never be right because it didn't have the opening amount in it. So you've got to enter the opening balance. So we go over here and we say, okay, well the opening balance is $43,440. Okay, that sounds good. So then we go back in to where we, we'll just edit the account to where we set it up. And you see this button that says enter opening balance. The only time that you will ever use this button is when you're first setting up QuickBooks which is what this seminar is about, this webinar. So I'm going to go ahead and click enter opening balance. And it asks me a question. It says enter the ending date and the balance from the last bank statement you received before the QuickBooks start date. So it wants the bank statement balance on the last statement before the start date. So the QuickBooks start date is the date that you've decided. It's not something to put in QuickBooks. It's just a date that you decide in your head, okay, I'm going to make it June 30, 2020. So because I made it June 30, 2020, the last bank statement was on that exact same day, June 30, 2020. So I'll go in here to the statement ending date, June 30, 2020. Beautiful. Then they want you to put the balance. Now listen very carefully. They do not want you to put the balance that's on the balance sheet when it comes to the bank account. That's 43, 4, 4, 0. They don't want you to put that balance. What they want you to put here is the bank statement balance. So I'll go ahead and look at your bank statement for June 30, 2020. You look at the ending balance and you type it, and then you click OK. And then you click OK again, or save and close. So now it has a balance in it. Now the next thing you might be wondering is Greg, something's weird here, but that's not the right balance. This says $40,000. That's the checkbook balance, but yet my balance sheet that I've got to enter opening balance is from has 43. Why is it different? Somebody chat me up and ask and tell me why it's different. This is a really important point. Becky, anybody got an idea why this balance is not the bank statement balance? We have people saying that we need to enter transactions. There's outstanding checks that need to be reconciled. Perfect. That's it. So basically it's because there are outstanding transactions that have to be entered. Now you may think to yourself, well then why didn't we just enter the checkbook balance here? Why did we enter the bank statement balance? Then it really would be the right balance. You know why? Because if we don't enter the outstanding transactions separately, then we can't do a bank rec because the very first month July when we try to do a bank rec we won't have those outstanding transactions listed separately. So we can't check them off. So in order to do a bank rec properly, you have to put the bank statement balance then, and you guys are exactly right, you go into the program and you enter the outstanding transactions as of their original date. I'll just put something here. I'll make the check to me. Actually no, I think it was a deposit. Yeah, it was a deposit that hadn't cleared. So let me go ahead and go into the deposit window. Make deposits. That's always better than a check not clearing. It's a deposit that needs to be entered. All right, and we'll just put $3,000 here. There. So now this says $43,440 and we'll go back here and this says $43,440. Got it? So you will need to enter the opening balance for every single account that you have on this balance sheet. Now most of them you won't have to enter like a bank statement balance like prepaid insurance. You'll just enter whatever the number is as the opening balance. You won't have to do that weird thing like we did with the bank account. But the bank account is weird so I needed you to see that. But you'll need to enter the opening balances for all the accounts. So I think that's all I want to say there. And then I want to spend the rest of the time talking about what your account should be. So when it comes to the balance sheet, this is basically a good list of what your account should be. Now you'll get your own balance sheet from the account and that will be obvious. It will tell you what your account should be. But in general for nonprofits you'll need to have one account for each one of your bank accounts. You'll need to have an account. Let me see if I can get this arrow showing. I don't know. Becky, can they see this arrow? Can you see this red arrow, Becky? Becky, I see it on my screen. It goes through. Okay, so there's the checking and the savings. If you invoice out of QuickBooks and only if you invoice out of QuickBooks you might need a receivable account. For memberships receivable here I have grants receivable. It could be tuition receivable if you have school pledges receivable if you want to track pledges in QuickBooks. You may need a prepaid account. If you prepay for something ahead of time like say the year is June 30 but in May we pay the whole next year's of insurance. We don't want to expense it immediately. We want to point it to this prepaid insurance asset account and then expense it over time. So you might need that furniture and equipment. If you're a small organization you'll just need one that says furniture and equipment. If you're bigger you might have one for furniture, one for equipment, one for land, one for building, one for cars. Those are the main ones. Everyone is going to need an accounts payable account. But don't worry, the first time you enter a bill in QuickBooks QuickBooks will create that account. If you have payroll, if you issue W-2s to anybody regardless of whether you're using QuickBooks payroll or not you do need a payroll liabilities account and then you'll need an account for any loans that you might have. So those are your basic balance sheet accounts. Not a big deal. People don't screw those up very much but I will tell you what people do screw up is their income accounts and their expense accounts. So we go back into QuickBooks and let's talk about what your income account should be and what your expense account should be. Now QuickBooks gave you a set of income accounts. I'm going to tell you right now they're not going to be perfect for you. So you are more than invited to get rid of the ones that you don't want. So I can just click on one, go to the bottom left, and click Delete, click OK, and it goes away. And I can click on any of these that I don't want and click Delete and it makes it go away. Now I need to help you decide what your income account should be. And this is important because people screw this up. So I'm going to tell you the right way of entering or what your income account should be. And they're not necessarily what QuickBooks gives you. So what I'm going to do is I'm going to open up another data file where people have that shows you the wrong way. That's really the best way of teaching you what your income account should be is to show you what the wrong way is of doing it. So I'm going to go over here to Reports and I'm going to run a little P&L here. So the first thing here, here's the wrong way. Again, wrong way of doing this. I should probably change the header so people, wrong way. So it's not listening to me and you just look at the screen occasionally. So you should be listening to me. You know I'm going to be singing later Becky, did I tell you? Anyway, oh it's going to be a show. Let me tell you. So you see this top line, Restricted Grants? If you have restricted grants, Chat Restricted Grant, type it in. And I want to see, I bet you there's a lot of people that have restricted grants. And Becky you can tell me in a minute if there's a lot of people that do. But if you have restricted grants, the most important thing you've got to track about it is how the money was spent. If you have an income account that you're pointing restricted grants to, that doesn't tell you how the money was spent. So it's not helpful. So don't do this. Don't have an account that says restricted grants. The other thing is it makes it complicated when you're doing data entry. If I get a grant that's restricted from a foundation, I don't know whether to put it to foundation grants or restricted grants. You've got more than one person entering this stuff. Some people put it here, some people want it here. It's complicated. Don't do it. The other thing is you see how I have a separate account here for the Green Truth Grant and the United Fund Grant. Don't do that. Don't set up a separate income account for each grant. There's another place to track who gives you your money in QuickBooks. Don't use the chart of accounts for that. The biggest mistake people make when they're setting up their income and expense accounts is they use the chart to track absolutely everything under the sun, which means they have a lot of accounts, which means the financial statements that they give to the board are four or five pages long, which means the board doesn't read them, which means they don't know what's going on. Hey, maybe that's what you're trying for. I don't know. But if they don't know what's going on, later on when there's a money issue, guess who's going to be blamed? You for not telling them. So what we want and what I teach in my trainings, both live as well as on the training products is showing you how to create a one-page P&L compared to budget that's easy to read. I'll give you a page and a half if you have to, but no more than a page and a half, which means you don't want very many accounts. So do not have restricted grants. Do not have this separate one for each one of your grants. So what do you want? Let me tell you what it's supposed to be. And this is true for everyone that's listening to me, okay? Every one of you. Wow, I made it bigger. Is that okay, Becky? Can they see that? Yes, it looks great, which is zoomed in at that top section. So I want you to have one for individual contributions, one for corporate grants, one for foundation grants, and one for government grants. You might have a fifth one for churches and religious organizations if you get money from churches, but that's it. Why do I want it broken up this way? Because that's how I have to have it on the 990. That's how I have to have it on the audit. And it's a really good way to see where your money is coming from. Non-profits should be trying to get some of their money from individuals, some of their money from corporates, foundations, governments. You want to have a nice split, okay? Then you've got your earned income, money for services that you provide. Some of you may be membership associations, so you'll need a membership dues account. I just set up a generic thing called program fees, but you would want to set up one related to whatever fees are for maybe you have workshops. So it would be workshop income. Maybe you're a theater. You have ticket sales. Maybe you're a school. It would be tuition. But you want to have general overheadings for the types of services that you provide. Don't get too detailed here. There's other places to track the details. We'll talk more about that in next week's webinar. Then we have one for miscellaneous and one for interest. So not very many accounts. So that's the income accounts. Now when it comes to the expense accounts, let me hide this for a second, expense accounts people really screw up, okay? And it makes sense. Let me just talk about this for a second. Well, you have no choice in the matter. But anyway, regular businesses that aren't nonprofits, the only real way they have to worry about tracking their expenses is the natural category of what the expense was. In other words, is it for salaries, or payroll taxes, or equipment rental, or postage, or printing, or contract labor, whatever. These are the natural categories of expenses, natural way of thinking about expenses. And that's what most businesses have to do. Non-profits have to do that. Every time they enter a check, they've got to tell it. You've got to tell it what type of expense it was. But in addition, you've got to place it in one of three buckets. Every nonprofit has to know whether the expense is in one of three buckets. Anybody know what those three buckets are? Becky, let's see if anybody knows what the three buckets are that nonprofits have to worry about kind of grouping their expenses under. I see people writing management and general admin fundraising, management fundraising programs. There you go. We got it. Program admin fundraising. Funders want to know that most of your money is going for program. So every time you enter an expense, you have to tell it what program it relates to. And if it doesn't relate to a program, maybe it's admin or fundraising. Now what people do that is wrong. Ding, ding, ding, ding. This is wrong. This is wrong is they will use the expense categories for their programs. So if you see here, and I'll go ahead and zoom this again since that works so well. This organization is called Synergy Now. And the organization is all about getting the country onto environmentally friendly forms of energy. We have an aware campaign, and a Synergy conference, and a guidance center. Those are the three programs that support their mission. Well what this person has done which is wrong is they have created expense accounts for each program thinking, well I don't know how much the program costs. Well, don't do that. Again, it makes things confusing. If I write a check for postage for the Synergy conference, I don't know whether to point it to postage or the Synergy conference. The other thing is they will typically only put direct expenses to the program. What's the biggest expense of your organization? Probably payroll. And payroll, they'll say, well I'll just put it to salaries. So you see how they're mixing the program admin fundraising button or grouping. They're mixing it, and then they're additionally putting the natural category in the same list. So we don't want to do that. It makes life complicated. And furthermore, it makes it look like you don't spend very much money on your programs because all your indirect costs like salaries, you don't put to there. So don't do this. So what you're supposed to do, and let me scroll down here to hide this, is you want to make your categories, your expense accounts, you want to make them be the natural category of expenses. Salaries and wages, health insurance, rent, postage, printing and reproduction, natural categories. There's no right or wrong answer here. Whatever level of detail you want is fine. It's up to you. Some people, they just have one account for repairs and maintenance. Here we've separated up by building computer and equipment. It just depends on the size of organization and what the board wants to see. So don't worry about it. So natural category of expenses. So if that's, that's interesting, that's a severe error. Am I still up on the screen, Becky? Yep, I still see your screen. Okay, that's a good thing to know. All right. So what that leaves is, and we're kind of rounding home here, is that's your chart of accounts list. That's how, that's what it should be. The expenses should be the natural category. So where do you put your programs then? All right. So where you put your programs, and I'm just going to go over to lists here, is you want to put your programs in a different list in QuickBooks, a class list. Here's the class list right here. So this class list is a feature that you may need to turn on. So to turn it on you go to Edit, you go to Preferences, and you go to the Accounting Preferences, you go to the Company tab, you click Use Class Tracking, you click OK, and then you'll be able to set up your classes. We go to Lists, and we go to Class List. So for each one of your classes, or your programs, you set up a class. So we have one for the Guidance Center, one for this entry conference, one for the Aware Campaign. To set up a class, you go to the bottom left hand button, you click New, and we'll just put New Program. Now every single one of you that are listening to me will also need to set up two additional classes, one for your admin costs, and one for your fundraising. So if you're a small organization, maybe you only have one program. So then you'll have three classes, one for fundraising, one for admin, and one for your program. In this case, we had three programs. So once you set that up, then things get really cool. When you enter a transaction, not only can you tell it the natural category of expense, postage, but over here in the class field you can say what program it related to, Guidance Center. And yes, in case you're wondering, you can break an individual checkup and split it between different classes. And you can do that for the income accounts as well for income like deposits. And as a result, now this is going to blow your mind here. So what I can do is I can do a P&L, let me switch to a different, I'm going to switch to a better data file here. Yeah, Greg, I was going to ask, we had a couple of people saying is this still the wrong way, or is this the right way now? Is the top of the page still says wrong way? I know, I know, so I need to switch. Yeah, so the right way is to do — Do you have some checks on right ways? Yeah, just to repeat to make sure that I'm not confusing you is that the right way of entering your expense accounts is to, and I'll just pull up a little P&L here, is to use this for your natural categories, salaries, payroll, taxes, health insurance. That's the right way. And you want to use the class list to set up your programs. And then once you enter transactions and you point them to the classes as well as to the expense accounts, you can do a P&L by class. Now I'm going to blow your mind if you haven't seen this before. You ready? I'm going to click it. What you've got here is a beautiful report. It's a nice column for each one of your programs with an additional one for admin and fundraising, and then a total. It's a beautiful thing. Now you may not give this to the board, but it's going to be awesome because you'll be able to see how much each program costs, how much you're spending on admin and fundraising, whether or not a program is paying for itself. And this very report is how I have to enter the expenses on the 990, and it's also how I have to report it on the audit. So it's a beautiful thing. So let me go ahead. I'm going to take one question, two questions right now. We're going to do a ton of questions, but I want to go ahead and take one or two questions since this was such an important point. Is there anything Becky to pass out? Yeah, well we had a couple of people just confused on how you got this to show up. So where did this come from when you just – The report? Okay, so what you do is you go to reports, you go to company and financial, and then instead of doing a standard profit and loss, you do a profit and loss by class. So that's how you do it. We also had a bunch of people asking about if I've set it up already and I didn't use classes, can I go back and add that? Yes, what I would do is I would create your classes, and then if you want to re-point the transactions, basically go into each transaction and classify them. You can certainly do that. An alternative would simply be to start doing it going forward, and after a little bit of time you'll be caught up. You'll have a whole year's worth and you'll be fine. So you have to make that determination. And are there subclasses too? Yes, you can use subclasses if you want to. What some people do, see now I'm going to go crazy, is they'll create a class, let me see, called Programs. And then what they'll do is they'll make each one of these a subclass of programs. And you can do it that way or where you see the little diamond, you can click and drag and just make it a subclass. And what that does is when you do a report by class, let's do that again, P&L by class, then you'll get a subtotal of all your programs. So that's kind of nice. But yes, you have subclasses like that. So let's go ahead and go ahead. Sorry, I was just going to say, for people who want to know more about classes too, we'll be pointing to a blog post that's specifically on classes and can give you a little bit more information after this webinar. So when you get to follow up email later today, there will be some more details about how to do that in addition to what Greg has pointed out. Cool. So the only other thing that I want to point out is how to enter a budget. So that's the last thing. Well, that's the main thing that I want you to set up after you've entered your accounts and your classes. To enter a budget, you go to Company. And by the way, you can do this no matter what version of the software you have. If you have the online edition, I should have said this, if you have the online edition in order to use the budget feature and use the class feature, you have to have the plus version of the online edition. But anyway, I'm going to go to Company, Planning and Budgeting, Setup Budgets. The first time you go into the screen, this is what you're going to see. It's going to ask you what year you want to enter a budget for. We'll do it for 19 and 20. They want to know, do you want to enter a budget for the profit and loss or the balance sheet? I'll do P&L. It's real easy. Then you can do either a budget for your entire organization, which would be no additional criteria, or you can do a budget for a program, which means you'd pick class. You can even do a budget for a restricted grant, which means you do customer job. Now we cover this more in my full training, but no additional criteria is the bare bones what you definitely need at your organization-wide budget. So what you get is a window with a column for each month. And then what you want to do is, well what these rows are, these are the accounts that are in your chart of accounts list for your income and expense accounts. So you want to get the budget from whatever the committee is that created it and stick it in here. I know that's fantasy land. You're the one probably doing the budget to begin with. But if somebody else is doing the budget, make sure to give them a list of your accounts, your chart of accounts list, so that they use those accounts. Nothing's more frustrating than getting a budget from a group of people. And when you go to enter it, it doesn't match your chart of accounts list. So if they don't like your chart of accounts list for income and expense accounts, let's come to agreement, then let them go away and do the budget. Now you can either enter the budget by month, which is a bit of a pain because then you've got to put something in each and every column. And again, there's a lot more on this if you want to budget by month in the training. But if you want to budget by year, what you want to do is you want to put the entire budget in the first month of your fiscal year. You can't type anything in this annual total column. This column is basically a total of the other 12 columns. It's grayed out here. So to put a budget in, you simply open the window up, go through the screens that I showed you, and then you basically type your annual budget right in there. We'll put in a budget for miscellaneous income. Here we go. So when you're done, you click Save. You click OK. To look at your budget, you go to Reports, Budgeting and Forecast. And by the way, this is where you go to look at your budget to actual report, which we'll do next week. But this is where you look at a budget overview. You click it. It wants to know which budget you want to see because you'll have a budget for every year. So you pick the budget you want to see. You click Next. You click Next again. You click Finish, and then you get your budget. Now the report assumes you budgeted by month. If you didn't budget by month, you click the drop-down arrow. You click Total Only, and then it will give you your annual budget. And you can print this thing out, give it to the board, and then the board can vote on it. And that is how basically you enter your budget into QuickBooks. So I think that's it for now. What I'm going to do is I'm going to go back to – because we got a good 20, 25 minutes left. And we're going to spend a lot of time on questions, but I just wanted to pop up something for you here. This is just a reminder of what we've covered that we use in classes for your programs, Ab in Fundraising the Accounts, or the Natural Category, those are the two main things that we covered. What else? We want to offer the option for people who want to hear more from Greg and who can sign up and opt-in to get emails from him. We don't share information of attendees with our presenters, even if they might deserve it. We have a strict privacy policy here. So if you want more from Greg later, go ahead and click Yes on this, and I will then give him your info so he can sign you up for his newsletter. And I promise you what it is. It's a monthly e-mailed newsletter, and it's video-based. So basically you get the newsletter, and it gives you a little video that you can look at, and it gives you a little tip. It comes out once a month. That's it. It's not a big deal, but it will allow me to communicate with you and better for you to communicate with me because I want to be able to keep helping you guys out. So I guess I'll – do I need to wait on this, or can I skip to the next slide? I'm going to leave it open just for a moment because people are still responding. Okay, does anybody have a question? Why don't we take one question away? Tons of questions. Those of you who are not, Katie and David and Allison, all these people on the back end have answered like 135 questions already. So lots of questions, but we still have 60 in the queue. And I'm going to show a little bit about where you can get the donations for both Intuit products, so where you can get QuickBooks through TaxSoup, which Greg showed earlier. I'm just going to quickly highlight where those are at. And I'm also going to show where QuickBooks made Easy can be found. So stay on the line, guys, because I am going to be answering questions. We've got a little bit of housekeeping to do. I'm going to stay on the line, and I will stay as long as she'll let me. So you guys stay on the line. I'm ready to answer questions. We can't go over a little bit. We do have a couple of questions, so Mary asks around classes. If you use the same class on an expense and an income, do they cancel each other out? No. If you use the same class on an expense and an income account, what that does is when you look at the P&L by class, the income will be up in the income section for the class on the P&L, and the expense will be in the expense section for the P&L. So the P&L for the class, you'll be able to get a P&L for the class. Now the net income, sure they net each other out just like expenses on that income, but no, I'm not a thousandth of sure about what her question is, but it's entirely appropriate to do that. That way you can figure out whether or not a program is paying for itself or not. Let's take one more, and then I want to get to a couple more things. Yep. So Florence asks, we receive non-cash contributions, so in-kind gifts or other types of contributions, maybe furniture, clothing, or something that they distribute. Should that be listed in a separate income account? Yes. First of all, you should book in-kind contributions. You need an income account for that. I didn't teach it here because this is basics. I think we may be covering that next week. You're going to need to do a journal entry to make that happen. So now let me go ahead, and I think I'm going to stop this now, and let's go into this. So did you want to read as far as… Yeah, really quickly before we launch into the full questions because I know a lot of people have to drop off at the half hour mark. So the Intuit Donation Program is what they're the company that makes QuickBooks, and they also make programs like Quick-In and TurboTax that are consumer-level products. I mentioned earlier that it's now open to religious organizations and churches, faith-based groups. So if you previously were not eligible to request and receive this donation through TechSoup, go in and check it again. We have an eligibility quiz on our site that's under the Get Products and Services tab, and you can go through that eligibility quiz whether you're a member of TechSoup or not. There's no cost to joining TechSoup. It's just the admin fee that you pay for the specific products that you request. And that admin fee goes to help ensure that TechSoup can continue operating our programs. And sometimes products are completely donated. Sometimes they're discounted. So look at that in the details for Intuit programs. They are donations, and so there's the QuickBooks Premier Edition's One User License, and that's 2015 version. And there's also QuickBooks Premier Three User License. That's if you have it at your office and you want your accountant to access it to do your 990s, and you have a board member who needs to get in, you want to make sure you request that. We also have QuickBooks for Mac. And keep in mind that these are limited to one request per fiscal year. So that's July 1 to June 30 each year. So we're offering the QuickBooks 2015 version right now, but you can also request if you need it to be compatible with somebody else's program or for a submission critical software that's not compatible. We have the QuickBooks Premier Edition's 2014. One User Three User and Mac editions also available, even lower cost admin fees. So those are there for your use and we'll include those links in the back end email that you'll get later today. You can also go directly to them techsoup.org into it or techsoup.org slash special offers TSL into it. So it's a little bit longer, but like I said, you'll get these links later. And then also Greg's organization, his company QuickBooks made easy. They make their products available both by donation and discount. And so you can get the Essentials Training Program which is some of what Greg covered today but much longer and much more robust that you can get as a donated product depending on your organization's budget or you can access it as a discounted product. Beyond the Essentials is available only through QuickBooks Made Easy. And Greg mentioned earlier that he had some promo codes that he could share. Let me just tell them that the Essentials, what you're going to be getting is a DVD with a follow along handbook. And it's $2.29 normally, but when you get it through TechSoup, you're going to either pay $39 or $99. So can I take it from here? Let me just show one other quick thing. I'll be pointing you to these and these will be in the slide deck that you'll get later today. So for people who are looking for more details on how to configure their QuickBooks, we have a whole series of blog posts that covers chart of accounts and classes and jobs and things like that. And then a variety of webinars that we've done with Greg in the past that covered different versions. So if you're on 2013, 2012, 2014, we have webinars that we've done with Greg that might help you with the version that you're on as well. So we'll be sharing those. And now it's time to get the questions. But before we do, I just want to mention again that after next week's QuickBooks webinar for existing users, we are having a soup chat in our community forums and it's linked on this page from 12.30 to 1.30 Pacific Time or depending on where you are, 3.30 to 4.30 if you're East Coast or someplace in the middle, immediately following the webinar. So we'll make sure that you're pointing to that. So if we don't get to your questions today, you can go there, post those questions now, and we will have people on hand next week to help continue answering them for both today's webinar and next week. So on to questions. Let me do this one thing that it doesn't look like it's there. Your coupon codes I think are farther back here. Wait, let me go back here. I think I don't want to skip this. That's not the same code. Let me just go ahead and tell them. So the code, there it is. No, there it is right there. All right, so here's the deal. This is another way for you to get your questions answered. So listen carefully. I've never done this before, but what we're going to do is the tech support where we can answer any questions that you have for an entire year. It's 24-7. You're going to be assigned a CPA who is a nonprofit expert and who knows QuickBooks, and you'll be able to talk to that person 24 hours a day, 7 days a week for an entire year. It's normally $2.99. We're going to do it for $99 bucks. All right, so the code is TS48Hour. We'll send that to you again, but you got 48 hours from the end of this, and I know it seems kind of gimmicky, and I apologize for that, but this is kind of a ridiculous price, but we wanted to see what would happen if we did this. So it's $99. When you sign up for it, you'll get a letter with the tech support number to call. I may very well be your person that you're talking to. You'll talk to the same person every time, and I'll even dial into the software to help you out. I can spend hours on the phone with you if you need me to. I really can, I promise. I only teach a couple of days a month, so I'm free for this kind of stuff, and I love it. All right, so let's do questions, and let's go ahead and start making different questions. We can stay beyond a few minutes if we don't get through many of them, but there's tons coming in. Nancy asks, can I have the same person as a vendor and a customer? No, you can't have the same person as a vendor and a customer, and so what you'll need to do instead is change the name a little bit, put –v after vendor, so that their name will be a little bit different. What's next? Well, folks are asking where to sign up for next week's webinar. Don't worry, we will include that in the follow-up email right up at the top, so if you want to sign up for it, you can do that easily. Yeah, I wanted to encourage you because it's kind of like a continuation of this one. Christy asks, where do we enter volunteer hours? And somebody earlier mentioned they're all volunteers. They have no staff. How do they use QuickBooks with all volunteers? Well, okay, so if you want to enter volunteer hours, I'm sharing again. Don't worry, I'll pop that up again in a second. You want to enter that in a list that's called the Other Names List, so you go to lists, you go to Other Names List. This is where you enter your volunteers. I put something here that's irrelevant, so I wouldn't use that. So you can click Other Names, and you put the name of the volunteer, Davis-Tom. And then if you go to, it's under the Employees menu, Enter Time, Use Weekly Time Sheet, and here's where you enter the hours. And we'll enter it for Tom, and we can put the hours right here. Next question. Sorry about that, I had to unmute. Do we need to have in-kind volunteer hours and in-kind products? Like is that something that's really important for organizations to capture? It's important to capture. I'm going to pop this back up again. It's important to capture the volunteer hours as a footnote for the audit, so I would think that it's important to do that. In-kind donation of products should be booked. I think it's a good idea to track those, particularly if you are, particularly if the stuff that's being donated is program-related because when you book it, it's going to up your program expenses as a percentage of your total. So yes, I want you to do it. What's next? Great. We also have asking, I'm halfway through my fiscal year and have not been using the categories or classes properly. Is it okay to start over or should I wait till the new fiscal year starts in July? What's the best plan? It's an interesting question, so I'd have to look and see about the data file to see what I think the best way to go is. In general, I say start using it now. Set up the classes and start using the classes now. Half a year we'll be using the classes the other half long. That's fine, but know that the report that I created, that great report, you won't really be able to get until you have a full year of transactions. So yeah, you don't really get going and using it until the next fiscal year, but I don't think there's any harm in starting now. And if there's not too many transactions, you can repoint things. Next question. We have a sort of related question, but on a different area. But Kristi asks, you know, somebody else was doing our QuickBooks until recently, and the accounts and class list is way overboard. Would it be better to start over and create a new company or try to clean up the old ones? So in general, the answer to this question is if the bank account reconciles, and so your bank is right, then you know all the transactions are in the data file. If that's the case, then I'm probably going to try and see if we can basically inactivate the old accounts that we don't need anymore, the old classes, and create new ones. That way, everything is still in the same data file. We don't have to start a brand new data file from scratch. If the bank account doesn't reconcile, then you might as well just start over anyway. Now either way, once you start using your new system, one downside is it's going to be hard to get comparatives to the prior year because you have kind of a new way of tracking stuff, but that is no reason to keep from changing. Just know that for that first year, it's going to be a little bit hard to compare to the prior year. What else you got? So now that churches and religious organizations are open to the donations of QuickBooks, how do you categorize dues or tithing or donations, like if you have a membership or a club, or you have like a parish for example where you want to be able to track who's giving you what? Is that something you can use and do in QuickBooks? Yes, definitely. When it comes to churches and religious organizations, you have an income account for tithing. You have an income account for each one of those things. And you enter those, and we'll see how you enter those individually, but you'll be able to enter it by individual donor and print out year-end donor acknowledgments. You can do that in QuickBooks. It's actually quite cool. You can also track funds in QuickBooks. A lot of this stuff for churches is covered in the Beyond the Essentials product. There's a lot of other stuff in there too, but that's something that is, I can't go into the details of it now, I don't know the time, but the answer is yes, absolutely. Do you have any suggestions of which programs are best to do the 990 with? Anything that talks well with QuickBooks? Yes, the best solution for doing your 990 is to pay somebody to do your 990. Do not do it yourself, because it's the most complicated piece of tax return to do. If you want a suggestion for a piece of software, I'm going to suggest a piece of software that Intuit has, which is LASERT, and it costs hundreds of or maybe $1,000 or something like that. And it's for accountants, so I wouldn't try and do it yourself if I was you. Great. We have some questions asking, how long will 2014 be supported? And when I go to transfer over to 2015, will things transfer over? And just on Intuit's end, they tend to support for three years back from the current version. So if you're running 2015, 2014, and 2013 are all being supported. If you're earlier than that, then I believe that they don't officially support those products any longer, so you may want to migrate. But as far as the transfer over, what's that process like if you want to upgrade to the newer version? It's real easy. What you do is you load the new software. You'll download it from TechSoup. You load it, and then once you've loaded it, you'll open an existing file. I don't know if you remember that button that said open an existing company file and you browse to where your old file is. And when you click to open it, it says, wait a second, this file is in an older version. I have to convert it. And it will go, and it will convert it, and then it will open it up in the new data file. So it's not really transferring anything. The data file is where it is and it stays where it is. It's kind of like it just goes into the programming a little bit so that it can be read in the new version. But you know it's going to be easy. They want you to upgrade. Great. Yeah, I mean they do want to make it easy, and the upgrades are available pretty readily. Let's see. We also have, what's the difference between the donated and discounted version of QuickBooks Made Easy? There is no difference to the one on our site, correct Gregg? It's just the budget and the environment. It's the same thing. It's just the size of your organization determines the price that you pay. And I can't remember what the breakout is, but either way it's $229 normally. So it will either be $39 or $99. And the tech before… Right, and I believe it's a $50,000 limit. So if your budget is under $50,000, you can access the donated price. If your budget is over $50,000, then you would have to pay the discounted version which is still a big savings over the retail. So that's a terrific offer either way. And the other thing… It's pretty easy. Not for Intuit. So Intuit, offering QuickBooks has different criteria. So make sure to look at those eligibility and restrictions on those pages. I should tell you too that the tech support that you're seeing on the screen now that's good for $48, $99, you don't get that through TechSoup. You can do that through our website, QuickBooksMadeEasy.com. And you can call us as well if you just want us to do it for you. But that's not through TechSoup. Right, and that's the same as beyond the essentials. So the donated and discounted products from QuickBooks Made Easy is the essentials. Beyond the essentials is available through QuickBooks Made Easy directly. Just to clarify since we had people asking that too. It is the top of the hour or the top of the time of ending this. But if you want to stay on, we can stay on for a few more minutes which Greg volunteered earlier to do. So lots of questions about in-kind donations still which I feel like you somewhat covered. So if people have more questions about in-kind donations, I would encourage you to go to that forum thread and post there and we can continue answering. Let's see, we have… I'll try and cover in-kind next week. Okay, and I think we do have it on our list for in-kind donations that we covered in the existing users. And it's the same time next week, so 11 a.m. Pacific or 2 p.m. Eastern, whatever you are in the middle. We have people asking if they have Premier already, should they stay with the Premier version? Or do you think that the different versions, should people go for Enterprise? A lot of people ask about whether payroll is included and it's not in the Premier version. So what do you think about that? Yeah, so Enterprise Solutions is the exact same program, but it's more robust. It's bigger. That's the difference. So instead of having a limit of 14,500 donors, members, or students, which is what your limit is in the Premier version, if you are going to use QuickBooks as a donor or member database, you can have over 100,000 in the Enterprise Solutions. If you are using QuickBooks in a network environment, you can have up to three users or five users in the program at once. If you have Premier in Enterprise, you have up to 30 users. So it's just more robust, but the pricing starts, I believe, at close to $3,000. So it's definitely a different world. Great. So there's a question asking if tech support covers the online version. Yes, the tech support covers the online version. As a matter of fact, we are in production now and we've already finished the recordings, but we are creating a training product just for the online edition. That will be ready in about six weeks. But yeah, I do tech support for online all the time. We have some people asking if this offer for $99 tech support will be offered after next week's session too, because there are staff attending that. Yeah, I don't. My plan is no. We'll have to see what happens here. So the plan at this point is no. So it's $48 hours, $99. And then you'll, yes, that would be $48 hours from I guess when we finish. We'll probably go to midnight on tomorrow night. Okay, so we are looking at, well it would be the day after tomorrow night, right? Because I'm sure today, yeah, it would only be 24 hours. Yeah, it would be the day after tomorrow night. So that would be Saturday night. Okay, great. So Nancy asks, how do we inactivate old accounts? Okay, so to inactivate old accounts, that's pretty simple. I'll go back into here. So we go to the chart of accounts list and here's an account. To inactivate it, you just go to the bottom left hand button and you click make account inactive. And then it disappears. But it's not really gone. It's still there. You just can't use it in future transactions. If you've used it in the past, it will still appear on those financial statements from the past. If you want to see what you've inactivated, do you see this thing that says include inactive? You click it and everything that's been inactivated appears with an X. And this actually becomes a really cool way of inactivating accounts that you don't want to use anymore just by going peep, peep, peep, peep, peep, peep, peep, like that. Next question. You do a lot of damage really easily if you wanted to. We have a couple of people who have asked about if you're using a different accounting tool like Peach Tree, can you convert to using QuickBooks pretty easily? Do you know how easy the process is to import from a different tool? Yeah, I'm so glad you asked this question. So if you're going from Peach Tree into QuickBooks when you go to set up a new company, you see this other options down here? One of them says convert other accounting software data. And if you click it, which I've never clicked it before, oh look at that, convert Peach Tree. It takes you, it's assuming that it's Peach Tree. That's awesome. So yeah, and it downloads a converter tool and it converts it for you. Not everything converts perfectly, but it's pretty darn good. You know they're going to make it good. What's the next question while we're waiting for this? Can you use a customer or vendor as an item or class? You can make the name of a customer an item. You can make the name of a customer a class, but I would want to know why. So we'll have to talk about it because I'm trying to figure out what it is they're trying to track. Yeah, I'm not sure they're either. Other people asked about getting info in from Quicken. So if they're using Quicken for something, can they support? Same thing. As a matter of fact, I don't know why this is taking so long, but let me pop out and show you. Yeah, there's a Quicken one as well. I think that one is even easier. New company, convert, look, convert Quicken data. Because that's the same company that makes Quicken. Yeah, Quicken is owned by the same Intuit company, so they should hopefully work seamlessly together. Let's see, we are almost at time and I have a couple of other quick slides to cover, so I'll pop that back out. Go ahead if you have another final thing to say, and then we'll pop that back out. I was going to pop you back to where you were. Okay. Great, thank you so much. And thanks for hanging out with us a little bit longer. I'm just going to show some of these additional resources. And once again, we want to make sure that if you have unanswered questions, which I know there are many, but we did answer more than 230 on the back end, which is a lot, plus a number of verbal questions. You can take those to that soup chat form thread that we'll include in the follow-up email, post those questions there, and we will try to make sure we've got people answering them between now and next week, and in particular for that hour after next week's existing user webinar. I'd love for anybody who's still on the line with us to let us know one thing you learned today that you're going to try and implement. This is just to capture the momentum of here's an intention that I'm going to do with what I got out of today's webinar. And I have people saying that they're going to use classes and set up budgets and do in-kind donations. So that's great. We're happy that you've gotten something out of this. And we would love it if after you receive the follow-up email today, if you share it with your friends and colleagues that you think would help them too because that's what we're all about here at TechSoup. We want to make sure that you've got the knowledge and resources to operate at your full potential with your technology. So please join us for next week's webinar. You'll get these links later today. And if you're not already registered and you want to, those links will be in the PowerPoint deck that will also be attached on the side of that email. So we'll be doing the existing nonprofit user QuickBooks event, the accounting soup chat right after it. And then we have other webinars coming up that are not even on the calendar yet, but we have some coming up on cloud computing and mobile devices and assisting patrons with e-readers. So keep an eye out and you can always visit our webinar archives or our YouTube channel to view webinars that you've missed. Thank you all so much for your participation. Thank you, Greg, for taking so much time to share all of your expertise with our audience. We love having you. And thank you to Katie Peterson on the back end for really being a machine workhorse back there answering a million questions at once. And to David Webb from QuickBooks Made Easy who's also on the back end, Alison Bliss and Aliva Zeke and from TechSoup as well as Louis Height. Thank you so much. We really appreciate you joining us and connect with us on TechSoup.org for more. Also thank you to ReadyTalk who provided the use of today's platform for us to present this webinar. Their ReadyTalk 500 tool is what we use today. And you can also access that donation at TechSoup.org slash ReadyTalk. Take a moment to please complete the post-event survey when you're done so that we can continue to improve our webinar programming. Thanks everyone and have a terrific day. Bye-bye.