 In this presentation, we're going to set up and customize our funds and tax features within our accounting software. Get ready, because here we go with Aplos. Here we are in our not-for-profit organization dashboard. We're going to go into our chart of accounts over here now, so we're going to go into the fund accounting tab, so the fund accounting tab up top. Then you'll see another bar here with our dropdowns. We want to go to the accounting dropdown on the far left-hand side. We're going to first go to that first item, which is going to be the accounting tab. So we're going to be going into the accounting tab. And then right up top, we have our funds features. So we've got our funds that we're going to be setting up. Now, if we go over to our Excel file, let's just take a look at... So we'll look at Excel to get an idea of what our objective will be. We're going to be up top, so I'm in cell 0202. We're looking at our trial balance. Now, note within the trial balance, we only have really one column. That's a typical kind of chart of accounts. So if we're thinking about the chart of accounts, we're going to have to break out from the categories. They're going to be restricted and unrestricted, and we can only do that with basically two separate accounts that would say, hey, here's restricted and unrestricted. However, when we pull that information over to a report, then we can have something like our statement of activities, which is similar to the balance sheet down here, which is going to be without donor restrictions and with donor restrictions. So now we have that same contributions account that's basically breaking out to the contributions without restrictions and with restrictions. And then we could further break that information out, but let's start here. So that's how can we do that within the system to make that easier to do rather than having... We don't even really need possibly the two accounts to do that. But in any case, how can we break this out so it'll then have these two columns? That's what we're going to use. We're going to use the funds to do this breakout feature. Now also note, when you look at the net income for the restricted and unrestricted, or in this case, the increase in net assets, the same thing as net income, obviously an income statement, it needs to roll into then the balance sheet or the statement of financial position. And the statement of financial position then is going to... Those two restricted items are going to relate to the items and what would be like the equity section of the net assets section of what would be like the balance sheet of the statement of financial position where we will have with donor restrictions and without donor restrictions. So note that in a for-profit organization, just normal accounting, you're going to have to roll over the net income into like a retained earnings or capital account. And there's always a problem or there could be like a wrinkle with the retained earnings or equity. As a whole, it's all the same. The net income rolls into basically the equity section or the net assets section. But if it's a partnership, you've got two partners and you've got to deal with the breakout of the two partners and their capital accounts. If it's a corporation, then you've got retained earnings and then you've got the investment, which is like common stock. In a not-for-profit, you've got the items that are restricted and not restricted. So that's kind of our added wrinkle of the detail when we do that closing process within the not-for-profit organization. Now let's go back on over. So what we're going to do then is we're going to set up these two funds and I'm just going to rename them as restricted and unrestricted. So I'm going to say maybe the first one I'll put unrestricted like that. And you can actually color these, which is kind of neat. So I'm going to color code them and that could really make things a little bit easier actually. So if I select this little item up top, then I can make it something like green. So I'll say unrestricted, I'll make it some kind of some type of green here. Just keep it at that. And you can you can then change the tone of it. So you have something like that. I'll keep it here. And so then I'm going to say save and then maybe it should be a little darker. Let's make it a little darker. I don't want people to be able to see it here. So it's just a little bit darker above. So that's too dark. Good thinking now. All right, let's save. Let's try that. We're going to say save and that's really dark. Let's do it one more time. We're going to bring this back up. Make it like right there. How about and then save? All right, that's good. And then I'm going to go to the other one, the general. And I'm going to say this is going to be a restricted, restricted. And then I'm going to hit the little color item and I'll make that red to indicate that it's restricted. And let's just keep it there. I'm going to say save. All right, restricted. So that looks good. Now you'll actually see a change down here in the chart of accounts now. So if I take a look at the assets, so the assets, the balance sheet accounts, you're not going to see the difference. If we go to the liabilities accounts, again, balance sheet account, equity. However, now we have the unrestricted and the restricted categorization. Now jumping back over to Excel here to see our net asset accounts, we have the net assets without donor restrictions and net assets with donor restrictions. I'm going to shorten up the name and just call it net assets restricted and unrestricted. So I'm going to go back on over here and we have these subcategories. I'm just going to have one subcategory. What I'd like to say is, okay, I'm going to actually rename the subcategory. So I'm going to click on the actual title up top and then I have the category name. Now I'm just going to call it net assets. So I'm going to call it net assets here. Then I'm going to say save. So there we have the net assets. This category I don't want. I can actually remove these categories. I'm going to select on the category. So you see that dropdown once again and simply delete it. So now I've got accounts group. Now it won't let me delete it until I move the account first. So I'm going to cancel that. Let's cancel that. And then I'm going to pull the account up with this little icon here. I'm going to grab that icon. I'm going to pull it up top so that I can bring that up to the top. There we have it. And now there's nothing in that category and it should let me delete it now. Let's go ahead and click on it again. And now let's try to delete it. So now I've got the net assets as the category and then I've got my two groups in it. So now I want to rename the groups. I want to rename this as unrestricted and restricted. So I'm going to say it. So it's already got net assets as the subcategory. So I don't really need to say net assets, restricted and unrestricted. I'm just going to say this is restricted. And then I'm going to save that. And this one I'll just simply make it unrestricted. So I'm going to click on that one and I'm going to say that's unrestricted. Unrestricted. All right, so there we have that. So now our net asset accounts basically correlate to the funds up top. We have restricted and unrestricted. Those are our two funds. Restricted and unrestricted down below. Let's go to the income. So now the income statement, we have the contributions income restricted and then we have the building down here. So I'm going to do a similar type of correlation that we had before. If we go to our Excel worksheet then we have the income. We have contributions without donor restrictions and contributions with donor restrictions. That's going to be our major two categories. So let's go back on over and I'm just going to rename these then contributions income. I'll say contributions unrestricted. Let's call it unrestricted. All right, this one is restricted. Restricted. So we have contributions restricted and then I'm going to say save that, we'll save that. And then I'm going to make this another one. I'm going to say this is contributions unrestricted. So contributions unrestricted. All right, so there we have that. Now notice we can also use this sub account. And in other words, we could have made just basically one account called contributions and then have the sub accounts restricted and unrestricted and that might help us to basically create a report that doesn't have two separate line items. So when we go back on over here, you'll note when we go over here we only have one account, contributions, which we're breaking out on the report by column. So the way we have it set up now we're going to actually have two rows here, contributions restricted and unrestricted, which will also be broken out by column. So if you wanted to then put them together you may be able to do that with a sub account kind of set up. So we're going to keep the two here at this point. So I'm going to save that. So those are our major income account now that's going to be the contributions restricted, the contributions unrestricted. And then we have the earnings down here. So we have the earnings. I'm going to leave that as is and we're probably not even going to be using that account. If I go down to the expenses then then we have the expenses restricted and unrestricted. I'm going to put everything on the expense side of things to be unrestricted. So I'm actually going to change these. I'm going to select the salaries and I'm going to bring this on over to unrestricted. And so then I'll say save and then we'll pick up the rent. So I'm going to click on the rent and I'm going to say that this is going to be unrestricted. So then I'm going to say save and then I'm going to pick the bank feeds. I'm going to select this to be unrestricted and then save. And then the office supplies I'll pick that to be unrestricted. So there's the unrestricted and you can imagine what's going to happen here when we allocate to the expenses these accounts now are allocated to the funds. So this will allow the system then to roll over the net income which has now been assigned to restricted and unrestricted to the proper equity account to the proper equity account here unrestricted equity. And that's a really good feature that's difficult to do in other software. Like you usually have to make an adjustment if you use like a QuickBooks or something then you can use a class feature which would break out these expenses in a similar fashion but it doesn't, as far as I know, doesn't have you a system that will roll out to its own equity account that we have here and properly roll that out. So this is going to be a nice system to use. It'll be nice for the closing process to have that linked up here. All right, so then we're going to go to the accounting up top once again, accounting tab. We're going to go back into the accounting dropdown. Now we want to look at the tags. I'm going to look then at the tags. And what we want to do now is break out, you'll note over here, if we go back to Excel, these are our two major categories that I want to be able to have a report to show people just this breakout of these two categories. Then I want to go into more detail with the unrestricted, I'm mainly worried about the expenses that I got to break out by program. I got to break them out by program, education, community service, and then general and admin and fundraising. So I've got to break those out and I want to be able to show that but I don't want to show it all on one giant report. I'd like to break it out in a separate report. So I'm going to use tags to do that. And then we also have the kind of restricted items that we have. So what are the restrictions? Multiple different types of restrictions that we could have. So I want to show that in another report as well. All right, so I'm going to go back on over and say, okay, I enabled these. There's a little green button typically to start this. So if you hit the little green button, then you'll see this something like this will show up and you'll have your tags down below. So you have your categories of the tags up top and then you've got your adding tags down below. So what I'm going to do is I'd like to rename these, these two tags to be supporting the restricted and unrestricted items again. So I'm going to be on the first one, which is fundraising. And then what I want to do is edit this. I'm going to select the dropdown over here and I want to rename the category. I'm going to rename the category and I'm going to call this instead of fundraise and I'm just going to call it unrestricted. So unrestricted and then I'm going to rename it. And so there we have it. So now it's unrestricted. And now we can have either a single tag, which means every time we have a line item on a data input field, there's one tag to it. I'm going to try looking at their multiple tag because what we're going to have to do is change. We're going to have to basically break out between the 40, 20, 20, 20, the multiple tag might help us to do that. So I'm going to keep it there for now and then I'm going to put in those tags. I'm going to say the tag should be, let's add a tag. And I'm going to have the program. So it's going to be a tag and then the tag number, we could say 100, 100 on the tag number. And I'm going to say education. So this is going to be a program and I'm actually going to put the percentage of the breakout there because that might help us with the data input. So that's going to be 40%. These would have to be determined by the organization and we'll talk more about how that will be broken out at a later time. Make this a sub tab. Now we might experiment with the sub tab at a later time because we could break out programs and then put these tags into the programs. So you could see a subtotal possibly of the programs versus non-programs. But I'm going to keep this for now. I'm going to say save that. There's going to be our tag information. So now we've got our first tag. I'm going to add another tag. So we'll select the little plus button again and I'll make this 200 on the number. And then this is going to be the second program which is community service. So I'm going to say community service. And I don't know why I got a space there. Where did that come from? And then we're going to say that's good. It's enabled. And so we'll say that's good. So those are our two programs. And then we have the manage it in general, which I'm going to call admin administrative. So I'm going to go back over and say, then we're going to add another one. We'll say 300. And we'll say admin is straight to. So I'm going to say add that. So that's not a program that's going to be part of the service. And I haven't been adding the percentages here, but I'll add those later. And then the fundraising. So then I'm going to add another one, which is going to be 400. And I'm going to call it fundraising. Now if we had multiple different areas of fundraising, again, that's another point where you can experiment with sub tabs or another section. So I'm going to say save on that. Then let's add our percentages, which are going to be 2020 for the rest of them. So let's go ahead and edit this. So I'm going to say, okay, could I edit this? I'm going to say I'm the name. I'm going to say this is going to be 20% and update. And then I can update any of these in a similar fashion. I'm going to scroll back down. I'm going to click on this one. And I'm going to say of this one, let's put after it, let's put 20% and then update that. And then we have the fundraising. Let's do the same thing there. Clicking on the fundraising and going after the fundraising and say 20% and then we'll save and update that. Okay, so there's our tag. So now you can imagine a report here now, the report basic income statement, basic income statement breaking out then between the restricted and unrestricted. And now the unrestricted items without restrictions, we can further break out with the use of tags running a report that'll break that out by tags. That's what we're imagining to happen here. Then we have the restricted items which we could further break out as well. So the restricted items, we want to break out by the type of restriction. Now we don't have any yet. I'm going to put one which is going to be just a time restriction. So I'm going to go to the projects then. The second tab over here, enable it, hit the little green button to enable it. And then this one, I only need a single tag. So I'm going to keep it on the single mode over here. And then I'm going to rename it, hitting the dropdown. So dropdown, I'm going to rename and rename this thing. And then we're going to call this one restricted. So this is going to be our restricted one. I'm going to say rename. And then I'll just add one category right now which I'm going to say plus. And so let's say plus. And then I'll say this is, let's say, let's say just, let's say 500. Let's say 500. And then we'll say rename the tag name is going to be time. It's going to be a time restriction. And then I'm going to add that. So there we have it. So now we can think of our code. If we look at our accounting, we've got the accounting, we've got the accounting lists. The accounting lists will give us our basic chart account, which is in essence our trial balance, which will look kind of like this, kind of like a trial balance will look. However, I also want to break it out by unrestricted and restricted. We're going to use our funds to do that. So that breaks out when we build a report then from something like a trial balance, that's the tool that will allow us to break out between restricted and unrestricted. So restricted and unrestricted on basically an income statement, a profit and loss. And we can see that by looking at the chart of accounts down below each account being assigned to either restricted or unrestricted. So restricted or unrestricted, these accounts being assigned to. Now note again, the expenses will typically be assigned to unrestricted, all of them basically. That's how we're going to have our project will set up and you'll see why when we go through the data input. And then we're going to have the revenue, however, could have restricted. We could have contributions that were restricted in some way, shape or form. So we'll see that as we go. And that will allow us then to flow over the total unrestricted and restricted into the net assets category, which we could show as either restricted or unrestricted. Then we can give more further detail on this information with our tags, breaking out this income statement. Now you can imagine the income statement now being broken out by the further reports with the use of the tags. So I go to the accounting and then tags and Aplos. And that gives us our tags, which now will be supporting the restricted and unrestricted columns, giving us the further detail of the expenses. And then we'll also give further detail of the projects. So we'll see this all come together more when we start to make reports. You'll see it's kind of more, we have to do more work on something like an Excel worksheet to make this happen. It'll make magically happen in the software a bit, but it'll be easier to do the data input. We want to imagine what's going to happen, be able to visualize what the links will be, and then we'll be able to set this up and just the more you do the data input, it'll be easier to kind of visualize what is happening. That's going to be it for now. Let's get out of here.