 Welcome everyone to QuickBooks for New Nonprofit Users. Thanks so much for joining us today. My name is Becky Wiegand and I'll be your host for today's webinar. Before we get started I want to just make sure everyone is comfortable using ReadyTalk. You can join us by chatting with us at any time through the webinar using the box on the lower left side of your screen. You can chat us any questions. Let us know if you are having any audio issues or technical problems, or just say hi and tell us where you are joining from today. We will keep all lines muted so that we get a nice clear recording that you can refer to and share with your friends and colleagues after, or watch again if there is anything you miss. Today's webinar is a 90-minute event so if you aren't able to stay with us the whole time, don't worry, you will get a recording later of the full event that you can share and re-watch at your convenience. If at any time you lose your Internet connection go ahead and rejoin using the confirmation email sent to you earlier today or when you registered. If you lose your phone connection you can re-dial though most of you are listening today hearing the audio through your desktop. If for some reason you are hearing an echo you may be logged in more than once and need to close one instance of ReadyTalk. You can always reach out to us through the chat with any issues or contact ReadyTalk support at 800-843-9166. We do record these webinars and it will become available as a full archive page on our TechSoup.org community events-webinars page. That's also where you can find our list of upcoming events and webinars. We'll be posting this to our YouTube channel and you can also find the slides on our slide share later on. So you will get an email from us following up with all of this great information that we share today within the next few days. And you can tweet with us today at TechSoup or using the hashtag PSWebinars. My name is Becky Wiegand again and I'm the Webinar Program Manager here at TechSoup. I'm really happy to be your host for today's event especially because it is with a good dear friend of mine Greg S. Bosson, CPA who is the founder and CEO of QuickBooks Made Easy. And we're thrilled to have him on because he really is an advanced certified QuickBooks Pro Advisor with a full service accounting firm located in Atlanta, Georgia. But he's also as I mentioned the founder and CEO of QuickBooks Made Easy which is a donor partner of TechSoup. And since 2000 Greg has been teaching live QuickBooks seminars around the country specifically designed for nonprofits. And he is a national expert on the program so we're really thrilled to have his expertise once again on the line with us. On the back end you'll see a variety of people but the one I want to point out most importantly is Karen Woodman who is with 24hourbookkeeper.com. She is also a CPA and will be joining us to help answer many questions on the back end throughout the full duration of the webinar. So we're really happy to have her joining us. You'll also see David Webb who is the Operations Manager of QuickBooks Made Easy and he'll be on hand to answer any questions about QuickBooks Made Easy programs and any questions about QuickBooks that he can handle. And then you'll see a few of us from TechSoup, Allison Bliss, Kevin Lowe, and Susan Hope Bard in addition to myself who can help with any of your questions about TechSoup and our programs. Looking at the objectives for today we'll do a quick orientation of what QuickBooks Premier looks like, what it is. We will be focused on the desktop installed product today. So if you are using QuickBooks Online we would love to share a link with the webinar we did on that product a few months ago with you. That's the best place to look because the programs do look differently. But then we'll go into Greg sharing directly on his screen how to set up your company, entering your opening balances, setting up accounts, setting up programs, basic budgeting. And then we'll talk about the available donations of QuickBooks that are out there through TechSoup and the training programs through QuickBooks Made Easy that are available. We will hopefully have a half an hour to get to your questions today at the end. So the first 60 minutes of this webinar we'll be covering 1 through 7 and then number 8 answering questions. We'll do a little bit of that throughout but we'll have a big chunk toward the end. So we hope you can stay with us for the full 90 minutes. Just quickly about TechSoup. We are a nonprofit that's building a dynamic bridge to civil society organizations and social change agents around the world where we're helping provide technology to every country on this map that's blue which is nearly all of them. You'll notice just a couple that are still gray. But we are everywhere around the world delivering donation programs like Intuit's donation programs here in the US to nonprofits, social do-gooders, and libraries worldwide. You can choose your country if you're not joining us from the US by going to TechSoup.Global. If you're in the US, TechSoup.org is your destination for technology donations, resources, how-to's, and community. You can look at our impact here. I won't go through all of them but we have since our inception donated more than $5.2 billion in technology products and grants to the NGO sector through our many donor partners like Microsoft, Intuit, Symantec, and Adobe. I'm just going to mention quickly the Intuit donation program which I will get to later on in the program. But for those of you who can't stick around these are the products that are available. We have a couple that are out of stock right now. QuickBooks Online is actually out of stock at the moment. But if you need one user, QuickBooks Premier Donation, Three User, or for Mac those are available. And we also have some QuickBooks Made Easy resources either available or that will be available very soon. So with that I want to go ahead and have Greg come on the line to introduce us, talk a little bit about his experience, and tell us what he does. Welcome to the program Greg. We're so glad to have you joining us. Thank you so much Becky. I really do appreciate all of your kind words. And hello to everybody. And I like to talk but I also like to see what everybody else is saying. This is not your normal webinar. I want you guys to chat a lot. A guy named Michael by the way Michael has chatted that he has no clue about QuickBooks and wants to know if we still want him to participate. So David is going to be helping me on the line. David do you think we should still have Michael participate? Do you think he is the only one that is clueless? David? David? Well this isn't a very good start. David is not here. I was muted Boston. You need to unmute yourself. I'm pretty sure that it will be applicable to everybody. Yes, there's a lot of people. There are other clueless people too. Kim, Phyllis, Dana, they are all clueless. Wendy I saw you were clueless before. Alright, so I'll clueless in Chicago. So anyway, so about me, don't worry, we are going to start from the very, very beginning. But even though you've been, maybe you've been using QuickBooks for a while, you're still going to learn and you're always going to have a good time. So I am an Advanced QuickBooks Pro Advisor. I specialize in teaching nonprofits how to use QuickBooks to track pledges, donations, and stuff like that. And we really kind of have three ways that we train people. And these are the three ways. The first way is that we have training products that we sell, and they are DVDs with follow along handbooks. They are DVDs with follow along handbooks. Then we also do tech support. And what that is is you can sign up for a tech support agreement and you can ask me questions for a solid year. We're going to give a very big discount just for those of you. But let's see whether or not I'm any good before you decide you want the tech support. And then also we do live seminars across the country. And in the next slide here, let me just move to the next slide. I'm going to try and go a little slow because I know some of you have like a delay in terms of how your screen moves, which is always based on your Internet connection by the way, how fast your Internet is. But these are some of the upcoming cities that we have to go through this year. We've already booked a bunch of them in June. Boy, this is going to be a busy month, David. But anyway, he booked the seminars. And we're going to Alaska this year which I'm really excited about. So if you're interested in these seminars you can click on this link up here or go to this website and we'll probably pop it up at some point. I told you that we are going to give you a discount on technical support and it's only going to be $99. But it's only going to be $99 for you guys that are listening to the seminar. We'll talk more about that later. But let's see whether or not I'm any good. All right, so let's do a little poll just so I get an idea of how new. Gilda, I'm not sure where in North Carolina it will be held yet. David probably knows. How new are you to QuickBooks? So I need you guys to answer it. I want every single person to answer this. This is the first time I'm seeing it. I saw it but closed it. I got scared. I know QuickBooks but not for nonprofits which is doing QuickBooks for nonprofits is very different than for other businesses. And that's one of the reasons why the seminar is so valuable. We've got around 600 people on the call so far and growing. So go ahead and everybody answer so I know you're there. I know QuickBooks probably better than Greg does is what that means. And wait, this isn't a tap dancing class which I have 15 people that answered that so that's pretty good. I'll let this go for a little longer. You guys answer real quick here. I just got a little more people to go and then we'll go ahead and we'll show the results here so you can see the level of experience here. And people are still answering. That's very interesting. By the way, we are going to be teaching the desktop version of QuickBooks. There's the desktop version which is what you download and have on your computer's hard drive and then there's the online edition. The online edition is a very different animal. And as Becky said, I did a webinar on that and there's a link to it if you're interested in learning about that but this is kind of all about the desktop. So I'm going to go ahead and skip to the results here and we'll see what we got. So between the first two we've got almost half. Well, it looks like half of the people every time I see polls like this, poll results, I think of the presidential election. I know I shouldn't say anything about that. But anyway, so half of you guys are brand new to it. And then another 40%, no QuickBooks but don't know how nonprofits works. So this will be very interesting for you guys particularly when we get to the setup. 3% think they know it better than I. And then there's 5%, there's 28 people that thought this was a tap dancing class. I think that's awesome. So I'm going to pop up here just so that we, this is one more little thing we need to cover just to make sure that you understand what QuickBooks is and what it is not. It is a financial software package which means you can do your accounting with it. You can generate financial statements with it for the board compared to a budget, stuff like that, and track your bank account. You can track invoices and accounts receivable. You can track expenses. It will do payroll and it will process your credit card information as well. It will do credit card processing. Those are add-ons though. And in case you're wondering, can you use it as a donor database? Yes, you can. And we'll be talking a little bit more about that not in this webinar but in next week's webinar that I'm doing with TechSoup which is a little more advanced. So that's kind of what it is. And again, I'm just going to pop up this one more time so you can see what it is that we're going to be covering. So I'm going to start with a little just orientation which I think we've kind of already done. What I'm going to do next is we're going to set up, we're going to look at setting up a company but before we do that actually I'm going to show you how to get around in the program and that's what this QuickBooks premiere orientation is. It's kind of how you get around the program. When people see it they get scared. So after that then we're going to look at how to set up a company from scratch. I know a lot of you maybe have already attempted it. We're going to do it from scratch because a lot of you probably haven't. And part of setting up your company is entering the opening balances and we'll talk about what that means. So these first three steps here are going to take about 30 minutes. Then after we do that then we're going to get into what your account should look like, what your program should look like, and how you enter a budget. And this should take about 30 minutes also. This is where those of you that have been using QuickBooks but don't really know about nonprofits using QuickBooks you're going to get some real good information here. And that's basically I'm hoping it will take an hour. And then after that we'll have another 30 minutes or perhaps another 20 minutes to do questions. I will stay on the line a few minutes late if you want me to. And we'll do questions as we go also. All right, so that's kind of how we're going to run. And let's see. All right, so having said that I'm going to go. Becky, sorry to interrupt you. Before we dive into you screen sharing we've had a lot of people asking about if they use QuickBooks online should they stick around. I know you mentioned that we will be focused on QuickBooks premiere which is the desktop installed version. We did do a webinar on QuickBooks online a few months ago that I know we chatted out once. We'll make sure to include that in the archives too. Do you think it's worthwhile for people to stick around and watch even if they are planning to use that? Because I know they look pretty different. I do think that they should stick around if they're going to be using the online edition. And as a matter of fact I haven't pulled up just for those people. So don't worry, I'm not going to forget about you. I'll flop over to the online edition because basically setting things up, the rules are the same. It's just where you go to get to the screens a little different. But the techniques, the concepts that you're going to learn here are going to be the same. So don't go anywhere. Stay where you are. Becky, that's great to hear. And keep in mind that we have 600 and some people on the line. So if you have very particular questions about your instance of QuickBooks we may not be able to get to all of those. We have a lot of people on the back end trying to answer questions. But we may not get to everything in this 90 minutes. So we'll do our best. Go forth and share. Now the other thing, I'm okay with being interrupted Becky and David too. I want you guys to feel like you have a good experience. And I don't want to be talking so fast and moving so fast that your screen is taking time to catch up. And I'm talking about something that's happened after your screen is dragging behind because of Internet. So I'm going to try and move my mouse kind of slow, okay? Trying to be cognizant of that. If anybody says, you're too fast. This is freaking me out. Please chat David, say that this is off for you and you're not having a good seminar experience. He will tell me and I will make sure to slow down. So first thing that I want to do is I want to show you how to get around in the screens. And I'm going to show you how to do it in the desktop and then I'll pop up the online edition and I'll show you how to do it in the online edition. The desktop edition looks very different than the online edition though. Let me go ahead and just pop up the online edition here real quick. Here's what the online edition looks like for those of you that have online and then the majority of us have the desktop. So they look extremely different. So let me show you how to get around in here. The very first thing that I like to teach is I just want to show you what the screen that you're looking at, what's all on here because it's scary to people that are brand new. This very top bar here, it's called the title bar and it's telling us two things. The first thing it's telling us is what company file we are in. The company that we're going to be using both today and for next week's webinar is called Synergy Now. And Synergy Now is a nonprofit organization and the title of it is Here. The reason why it's here is because I don't know if you know this but once you get QuickBooks, if you have the desktop version you can run more than one company. You can have five companies, you can have 10 companies. You have 100 companies as many as you have and it's no extra money. How many people run more than one organization out of QuickBooks? Chat David up and let him know. I just want to see. I know there are. So if you do run more than one organization this is going to tell you which company file you are in so that you don't end up writing a check out of the wrong company. Now the thing is, and let me just explain this to you because this confuses people, when you click on the QuickBooks icon to open up QuickBooks on your computer it's going to open up QuickBooks but it's also going to open up the last data file you were ever in. And that's why most of you just open up QuickBooks and you have your company there. There are a few people on the line. I'm sure there are that have more than one organization. What it does for them is it opens up QuickBooks and it opens up the last company file they were in. And then if that's not the company file they want they go all the way over to this file button here and they click File and they either click Open or they click Open Previous. I'm going to click Open or Restore because it makes it easier to understand. And then what happens is it's opening up. It says, okay you want to open up a different company file. I'll click Next and it takes you into Microsoft Windows. And then when you are in Windows look at all the different company files I'm in. I could click this one or I could click this one but the one that I want to open is this one. And this is what it's like for people that have more than one company. So the other thing that the very top bar is telling you is telling you what version of QuickBooks that you are in. Every year QuickBooks comes out with a new version. I'm using version 2016 for all of you people that are saying should I upgrade to the newest version? The program only gets better. It doesn't get worse but if money is an issue for you and you can't afford it at all, it's pretty inexpensive on TechSoup. You can use an older version. And this webinar is going to work regardless of what version you have. So I'm using 2016 the nonprofit edition and that's the desktop version that I'm talking about. So that's called the title bar. The other three things that you see on the screen are simply ways of getting around in the program. This is called the home page. And it's a giant chart that tells you how to get around. It basically gives you little pictures. These pictures are called icons in the computer world. See, I keep it really basic. And it's the major things that you want to do. That's the home page. The second way of getting around is this bar on the left. And this is called the tool bar or the navigation bar. And it gives you shortcuts to major things that you want to do. And then the last thing is this thin little bar up here. What's this thin little bar called? Somebody tell me. Chat David up. Like I said, you guys got to listen. I'm going to test you. What's this little thing called? Anybody know David? David, not yet. Really? David, Brian said menu. Brian, thank you Brian. Yes, this is called the menu bar. Now the menu bar is also going to give you the things that QuickBooks does, but it's going to give you an average single little thing. Whereas the other two, this tool bar and this home page here just give you the major stuff. All right? So let me just show you. If I click Write Checks, it opens up a picture of a check. And look at this. This is check number 1001. Don't forget that check number 1001. If I go to this tool bar, and I can scroll down to get to where different things are, here's check. And if I click it, it opens up the same check number. Check 1001, just different ways of getting to the same place in the program. The third way of getting around is the menu. And the menu bar has every single thing that QuickBooks does. So I'd recommend once you're used to QuickBooks for a while, then start using the menu bar. Everything is organized by area. But if you want to write a check, you go to the banking menu here, you click it, and then Write Checks. And it will open up the same number. Check 1001. Pretty cool, huh? All right. So that's the three ways of getting around in the desktop version. I'm going to tell you one more little thing. I'm going to give you an extra. This is going to be exciting for those people that have been using QuickBooks for a while. You see this big fat bar over here that I said was called the navigation bar or the tool bar. This bar in the older versions of QuickBooks used to be on the top of your computer screen, not on the side. And so they moved it to the side about three years ago. But if you want, click on View, you can move it to the top, top icon bar, and then it moves it to the top. The reason why people like this is because this is what it used to look like years ago. It's all very pretty and exciting. So if you are liking this, you can have it on the top. If you don't like it, you can have it on the side. Either way. Now just for those of you that use the online edition, and I won't spend too much time on this, but I don't want you to feel left out, in the online edition, the vast majority of the screen is what I like to call irrelevant. These are like big pictures and no, you can't change them. And if you don't do invoicing, this ends up not relevant for you. So really the two main places that people go to to get around in the online edition is one of them is this plus sign here. If you want to add, and I'm doing air quotes, a transaction, you go to the plus sign, tiny little place on the screen, but yet that's where everything is. This is where you enter a check. This is where you enter a bill. Here's where you make a deposit. For those of you that are so inclined, here's where you do a journal entry. So this is where you do all your transactions. I'm going to go ahead and click it back. The other main place that people go is this teeny tiny little gear here. When you click this gear, this is where you go to set things up. In a little bit, we're going to show how to set up the chart of accounts list. This is where you get to it in the online edition. So everybody with the online, you'll be going here, and you'll be going here. And that's basically the two main places that you'll be going. So let me go back to the desktop, and I'm done with kind of showing you how to get around. So I'm going to stop. I'm going to take a couple of questions. This is nice, easy breezy, and then we'll be getting into how to set up a file. So David, talk to me. What do we got? Deborah says I'm the new treasurer for a church, and I'm trying to set up a QB for business meetings. We have five accounts that have designated money. Should I set each of them up as separate bank or use class for each one? I know not only classes. So she's ahead of the game. She's asking a fairly advanced question. So those of you that don't understand her, just don't worry about it. But in answer to your question, you want to track funds. This is something I cover in one of my training products. You're going to use classes. Do not set up separate bank accounts. It becomes a nightmare. Next question. Can you use an older version to open up a newer company file? No. Okay, so when you get a new version of QuickBooks, it will, and when you try and open up the old data file, and I should say this for those of you that don't understand that. If you understand Microsoft Word, Microsoft Word is a program, and then your data file is like a document. That's why I'm saying in the desktop you can have more than one document, right? Just like in Word. So if you upgrade to a new version, and you open up an older data file, it will convert it so it can be read in the new version. It's like getting a new version of Word and opening up an old letter. There's no resetting up. It just moves everything over. But it doesn't go backwards. It's not like you can have an older version, and then somebody sends you a data file in a new version, and you can look at it in the old version. Why do you suppose they won't let you do that? Can anybody guess why they won't let you open up a data file that's in 2016 in an older version of QuickBooks? Anybody know? You can be honest. Go ahead. Why would they not let that happen? Money. Money. Because it forces you to upgrade, right? We like to be honest here. But thanks to TechSoup, it's really cheap. I'm doing one more question, then I'm moving on. Okay. That's a lot. Sorry. That's okay. I don't understand classes at all. Will you be covering this? Yes. I'll cover classes today. Don't worry about that. Alright. Keep in mind, we got a nice chunk of time at the end, and I'll even stay late to answer questions if you need to. So don't worry if your question didn't get answered live. They're also chatting in the background. Karen is helping us out with that as well as I think a couple of other people. So let's talk about how to set up a company file. Alright. So that's the next topic. So what I'm speaking to is I'm speaking to those of you that have not, maybe you've bought QuickBooks, maybe you haven't, but you haven't started using it in your organization yet. Okay. So I'm not talking to those of you where it's already set up. I'm talking to those of you that need to set it up. But listen anyway because you might realize your books are so screwed up that you've got to set up something over again. So let me show you how to set it up. When you get QuickBooks Desktop and you load it onto your machine, it's going to give you some sample files. And I would suggest that you play around in those sample files. When you're ready to set up your company, there is a button that you push on to set up your organization in QuickBooks. And this is the button right here, Create a New Company File. So notice I'm in a sample file. So you get into a sample file and then you click Create New Company File. Okay. So I'm going to go ahead and click it. And do you want to start a new file for your company? I click Yes. How's everybody think I'm doing with the movement of the mouse? Am I going too slow, too fast, or just right? Y'all tell David. All right. So you look up at the screen here, okay? So they're going to make this real easy. Now I'm going to tell you the easiest way to just click the Start Setup. Now you can, if you choose to, convert a Quicken file into a QuickBooks file. And there's also features that will allow you to convert certain other files that are in other accounting packages. The main one I'm thinking of is Sage or Peachtree. You'll also notice an Advanced Setup down here. This is if you aren't converting, you just want to go with the Advanced Setup. I don't want you to do that. I want you to pick this little button here. This is a little easy setup. So I'm going to click Start Setup. David, how am I doing on the mouse? What did they say? You're doing good. All right. Everybody happy. I'm really surprised. All right. So now I'm going to set up my file. So I put New. Wait, no, I think I called it My Non-Profit. Pretty exciting. There we go. Now, here comes my first little tip for you. Over here where it says Industry, you're going to be tempted to type whatever it is that you do. I'm a dance company. So you put Dance Company. And when you click the Tab button to go to the next field, it's going to say, ehh, that's an Inverted Industry. Please enter another. So instead of tearing your hair out, just click Help Me Choose. There's a finite number of industries out there. You pick the one that most closely relates to you. And I'm going to tell you right now, every single person listening on this call is going to either pick Non-Profit, or if you happen to be a church, then you're going to click Church or Religious Organization. I'm going to pick Non-Profit. Now, the reason why the industry is relevant is it is going to give you a set of income and expense accounts based on the industry that you are in. These accounts will not be perfect for you. As a matter of fact, I don't even agree with what QuickBooks says, excuse me, should be your Non-Profit accounts. So you can change them, you can delete them, you can add to them, but at least you won't start with zero. And listen carefully, if you've already set up your company and you picked another industry not to worry, you can change the accounts anyway. It's not relevant, so you don't have to redo it. But if you're just starting, go ahead and pick Non-Profit. I'm going to click OK. Then it wants to know the business type. I'll click the drop-down list. You will be very tempted to pick Non-Profit. Don't do that, okay? The only benefit of picking that is if you are going to do your own 990 tax return and you are going to do it with a software that is for accountants that you have purchased from Intuit, then it allows you to map the accounts in QuickBooks to the lines on the 990 tax return provided that you do it on a software that you've purchased from Intuit, like LeCert as an example. So no, you don't want to pick that. Pick other or none because the Non-Profit thing is irrelevant. So if you did pick Non-Profit, then if you picked Non-Profit, then it's not a big deal. I'm just trying to help those of you that are just starting. Put your federal identification number here. Then you just put basic information. I'm not even going to fill that out. Then I click Create Company. And it's that easy. So that is the first step in creating the company file. So it's creating a file just like it's creating a Word document. If you were in Word, you've got this new document. And by the way, there's no such thing as like, ooh, I better save. Every time you do something in QuickBooks and click record, it saves. You save as you go. So we're all set. And then you'll get this little thing that pops up that says, hey, do you want to set up to get paid faster? That's the merchant service that we were talking about that's an add-on. Here's another add-on, Payroll. You can do Payroll through QuickBooks. And you can also, you can print your checks right out of QuickBooks. You don't have to order the checks from QuickBooks, but if you want to, you can click it here. So all of these are basically an advertisement. So then I'm going to click Start Working and blow that off. So if you look up at the top of the screen, do you see where this says My Nonprofit? That's because I'm in a different company now. It's a company called My Nonprofit. So that's basically how you set it up. The next step in the process is what your account should be. So I'm going to stop for a second, let everybody chill, ask me a couple questions, and then we'll move on. What do we got, David? Anybody have a question about what I've covered so far? Try and give me a question. So if they've picked the wrong business type at the start of their file, can they? It's irrelevant. If you picked the wrong business type when you started your file, it's irrelevant. Again, the only reason for the business type, the industry I mean, is for the chart of account list. Now if they picked Nonprofit as their type and they want to change that, you go over to Company. Actually, I'm going to show you why you don't want to pick Nonprofit. I'm going to go down to My Company, and this gives you the information that you set up initially. See how I have income tax form, other or none. I'm going to click this arrow here. Well, actually this is a pencil tip. And I'm going to click it. And here's where you can change, let's see, legal information, no company, where is it? Here it is. Income tax form used. It's under report. Look what happens if I pick 990. That's what it would choose if you had selected Nonprofit in that previous screen. I'm going to go to my chart of account list. This is only going to be relevant for you that already know a little bit about QuickBooks. But a lot of you do. When you go to set up an account, you'll get this line that says Tax Line Mapping. These are the lines that are on the 990. But again, this is only relevant if you're going to be doing your own 990. And if you are, I think you're probably crazy. And if you're using a product that Intuit offers that this ports to. So most people don't know what to put here, and then it just ends up being a field that just is kind of annoying. So I'm going to go ahead and cancel out of this. I'm going to go ahead and go over to my company again. I'm going to click on the little pencil tip. And I'm going to go to report information. This is what I'm suggesting that you do if you've got it set up this way. And I'm going to go and I'm going to click either none. Now when I do that and I click OK, now when I go to the chart of accounts list and I'll go up to list chart of accounts, you'll get used to where things are as you get to know the program. I'm going to edit one of the accounts, and you'll see it's now gone, that little thing. So that's it for that. All right, we'll take one more question and then we're going to talk to you. I'm going to do a little lesson in accounting here. Go ahead with the next question. Can you repeat how you changed the icons from the side menu? Oh yeah, yeah, yeah, sure. So the icons are on the side here. If I want to move it to the top, I click on View and Top. And now it's on the top. And then I'll click on View, and then I'll put it on the side. And give me the first names when you do the questions so I know who I'm talking to. All right, so let's do a little lesson in accounting. Are there any CPAs here by the way? Go ahead and chat CPA if you are a CPA. I'm just kind of curious. Who's a CPA here? We have one. We have quite a few CPAs. Really? Okay, so I'm going to give a little quick lesson in accounting. It's something that I need to do in order for you guys to understand how your chart of accounts should be set up. So those of you that are CPAs or bookkeepers and you understand this, tell me how you think I did. Here's Accounting 101 in 5 Minutes. You ready? All right, so I'm going to go ahead and click on Reports. The whole purpose of accounting is to create two reports. What are those two reports? Somebody chat me up and tell me. What are those two reports? Anybody know? The whole purpose of accounting. ISBS? ISBS. Oh yeah, Income Statement and Balance Sheet. There's a fancy person. Yes, QuickBooks calls the Income Statement the Profit and Loss. It's the same thing as the Income Statement. I'm going to pop it up. And oh, actually I need to change to a different data file. Let me do this real quick. And what was the other one? We have APAR Balance Sheet. The other one, not APAR. There's really only two main reports when it comes to all of accounting. And those reports are the Profit and Loss and the Balance Sheet. So I'm going to go over to Reports. And I'm going to click Company and Financial. And I'm going to click Profit and Loss. Here's where the Profit and Loss is. That's the thing you usually give to the board compared to a budget. And then the other one is the Balance Sheet. I'm going to go back over to Company and Financial. And I'm going to click the Balance Sheet right there. So the whole purpose of accounting, and let me just go ahead and make this a little bit easier for you to see. The whole purpose of accounting is to create these two reports. All accounting is, is the process of creating these two reports. So let me define these to you. The Balance Sheet is like a snapshot of your organization at a point in time. It's like a picture. And this picture was taken on June 30, 2020. Today's date is June 30, 2020. I'm just telling you that's what it is. And so on that date, the Balance Sheet gives you an accurate picture, a frozen snapshot of what your organization looks like. It has a top half and a bottom half. The top half is all the assets, 104,000. And the bottom half, if you'll notice, also is 104,000. In other words, the bottom and the top half balance or equal. That's why it's called a Balance Sheet because they balance or equal. So the top half is made up of all the stuff that you have of value in your business on the day the picture was taken. So in this example we had $51,000 in the bank. That's an asset. It's something of value that we have. It's stuck at the top of the Balance Sheet. Receivables, prepays, here's some furniture and equipment. All of these things are things that we have in our organization. They total 104,869. That's assets, and it's the top half of the Balance Sheet. The bottom half of the Balance Sheet is made up of two parts. It's made up of liabilities plus equity. Liabilities, that's everything we owed on the same date the picture was taken. Liabilities, that's everything we owed. Assets at the top is everything we have. Liabilities is everything we owe. We owe some bills. We owe a credit card. We have some payroll taxes. We even have a loan that we owe down here for $38,000. Total amount of money we owe is $45,641. So liabilities is everything we owe. And then the assets we have is $104,000. Equity is simply the difference between the assets and the liabilities. Very easy. If the top half of this has to equal the bottom half, you know that equity has to be the difference between liabilities and assets. Assets minus liabilities equal equity. There's other words for equity by the way. Does anybody know other term for equity? Anybody know what nonprofits call equity? Chat him up if you know. The CPA should know. Net assets. What about if you've been around for many years? What is it used to be called in the nonprofit world? Begins with the letter F. Anybody guess it? No, no one said it. Fund Balance. There you go, Fund Balance. Used to be called Fund Balance. Whoever said that just dated themselves. Now it's called Net Assets. Assets net of liability. I like to think of equity as kind of what's left over. I have $104,000 of assets. If I were going to close my organization, I couldn't keep it all. I'd have to pay off $45,000 of bills. And then whatever is left over is what, and you don't keep it. You give it to another nonprofit if your organization closes by the way. But anyway, where you steal it, leave the country. That's another option. But that's a completely different symbol. So the bottom line is that you want this number to be positive. And it's what's left over. So the balance sheet is like a snapshot at a point in time. Now I'm going to go over to the P&L. The P&L is like a movie over a period of time. That's why if you notice, it's from a date to a date. Whereas if you go back over to the balance sheet, you'll see the balance sheet is just as of a point in time. P&L is like a movie over a period of time. So actually I can change it. I'm going to change it from this month to date to this fiscal year. So basically it has a top half and a bottom half also. The top half of the P&L is just all the money coming in, $235,000, and then the bottom half is all the money going out. Those are your expenses. At the bottom, hopefully you have a positive number. Hopefully you have gotten in more than you paid out. And I hope it's a positive number. And I like to think of this as what's left over also. You have your revenues all year, your donations, your grants, your tuitions, your membership, sponsorships, grants, whatever. And then you take away your payroll and your rent and your other expenses, and then hopefully you're left up with a positive number. Well that's the same thing that I said equity was, what's left over. And if you notice, I'm going to move my little mouse away. Hold on, let me get this right here. Wow, I've got stuff everywhere. Here we go. This number is over here on this side too, net income, $28,000. You see, the real secret is there actually is only one financial statement in all of accounting. And it's the balance sheet. And every single transaction that you enter hits this balance sheet. Usually once at the top half, and once at the bottom half, so the top half and the bottom half will still equal. It's just that if it's an income or an expense line, then it hits this net income. Income goes up if it's an income, and expense makes this net income go down. And then it's kind of broken down into the details over on this P&L. So this P&L is like a blow up of the net income so that you can see what happens over a period of time. And all accounting is, is the process of entering transactions so they end up on these two reports. The whole purpose of accounting is to enter transactions so they end up on these reports. Specifically what you do is you do this in QuickBooks, but you do this in any accounting package. You enter a transaction. I'm going to go ahead and enter this. Look at this check. Every single transaction ends up on these reports, and it ends up there by going first through one of the lists in QuickBooks. The list that it goes through is the chart of accounts list, and we'll talk about what yours should be in a minute. But the chart of accounts list is the backbone of your entire accounting system. So the way it works is you enter transactions. Every transaction that you enter hits at least two accounts in this list. And for a check it would be whatever the bank account as you picked here. I'll pick the checking. I could have picked the savings, but I'll pick the checking. And then whatever the expense account that you picked down here is, we'll put office supplies. So see, every transaction hits at least two accounts. Here's one. Here's the other. And when you go over to your chart of accounts list you will see checking account. Here's the checking account right there. And if you go down to where office supplies is, to go over here you'll see it here too. You've got to scroll down to get to it where all the expenses are. But here is office supplies in the O's. Now from there, I'm going to go ahead and get rid of this transaction. The lines on this chart, they are the lines that make up the two financials. And that's why it's so important that you understand how to set up your financial statements, how you set up your chart of accounts, because it determines what these two reports look like. Checking, savings, membership receivable. Where did it come from? Chart of accounts. Checking, savings, membership receivable. Now these accounts are broken up into different types and I'll get to the types in a second, but I'm just going to tell you right now every single account that is of the equity type and above appears on the balance sheet. And every single account that's below equity appears on the P&L. Individual Contributions Corporate Foundation Grants, Individual Contributions Corporate Foundation Grants. So it's very important that you understand how to set your accounts up correctly. So I'll take one or two questions and then we're going to launch into how to set up your accounts. So let's go ahead and ask a couple of questions and then we'll go for it. So who's got the questions? Mike has asked, what if you have people in your organization that are using debit cards? Oh, well so basically the question is kind of like, where do I enter debit cards? In the desktop, you go to banking, you click Write Checks, you go over here to where the check number is and you put debit. You're not printing anything, you're just kind of using this as a way to enter a debit card transaction. One more question. Where did you click on to get to the chart of accounts? Where did I get to the chart of accounts? I'm going to go to lists and I'm going to go to chart of accounts right there. Now I'm also going to go to the online edition real quick so you guys won't feel left out. I'm going to go to Reports to show you where your P&L and balance sheet is, Reports. And I'm going to go – the reports are kind of broken up into different areas here. I'm going to go to All Reports and I'm going to go to Business Overview. That's kind of a subcategory. Here's where your P&L is, and here's where your balance sheet is. If you want to know where to go for chart of accounts, you go to the little gear and chart of accounts right there. I'll just go ahead and open it up. Now let me go back to the desktop and then what I'm going to do is I'm going to talk about how to set up your accounts. Now the first thing that you've got to understand is if you are brand new, your accounts won't have any numbers in them. So what I'm going to do is I'm going to go back to that company that we set up because your file won't have any numbers in it yet. So the first thing that you need to do, I'm only talking now to those of you that are going to be starting new with QuickBooks. After you set up like I just showed you to do a few minutes ago, the next thing you got to do is go to your chart of accounts list. I'm going to click List and Chart of Accounts. What QuickBooks is going to do is it's going to give you a chart of accounts list that it thinks you need based on the fact that why do I keep doing that? List, Chart of Accounts, based on the fact that you're a nonprofit. So here's my chart of accounts list right here. One thing I want to explain, when you set up a company in QuickBooks, it assumes you want to use account numbers. Account numbers are a way of identifying an account with a number in addition to a name. So instead of it being office supplies, I mean we still call it supplies, but we also have a number 65040. You don't have to use account numbers. They're not relevant. So it's not necessary to use account numbers you can if you want. But if you don't want to use account numbers, you can certainly turn off the feature. And I'll show you how to do that in a little bit. So how do you add, or how do you work with these accounts? So the first thing you'll notice is it's going to give you some income and expense accounts. It will not give you very many balance sheet accounts, your assets and your liabilities. So those of you that are new to QuickBooks, first you do the little setup like I showed you a few minutes ago. Then what you're going to need to do is you're going to need to put in your balance sheet accounts that you have. So what you have to do is there's two things you've got to do. You've got to decide when you're going to start using QuickBooks. I mean what date you're going to start entering transactions. So here we are on February the 25th. Now I will tell you that the cleanest thing to do is to start using QuickBooks as of the beginning of your fiscal year. Because then you have the whole year in the same place. Now it's only February 25th. If your year ends December 31, you only got a couple months to enter. But if your year ends June 30, then you've got 7 months to enter. So you've got to decide whether or not that makes sense for you. But in general, the best time to start is the beginning of your fiscal year. But you need to make a decision as to what that date needs to be. And I can help you with it if you need to. Once you decide that date, say I'm going to start 1-1 of 2016. What you have to do is you have to get a balance sheet from your accountant or from somebody that has the opening balances. So what I've done is I've got one on the screen here. So you would actually need to go to somebody and say please tell me what the opening balances are. So let's look at furniture. The balance is 9870.41 and we'll just pretend that this says December 31st. So December 31st, the balance is 9870.41 for furniture. So you'll go into QuickBooks and you'll find the furniture account and you'll put in that opening balance. And you'll do that for each one of the accounts on your balance sheet. Now I don't see one just for furniture. I see one that says furniture and equipment. So what I'm going to do is I'm going to click on it. I'm going to go to the bottom left-hand button and I'm going to click Edit and I'm going to change the name of it to Furniture so that it matches the name that's in my balance sheet. I'll pop it up and just see the number again. Yeah, furniture 9870.41. So then what I'm going to do, so I'm going to go back into QuickBooks. You see the thing that says Inner Opening Balance? You only will have to do this for your balance sheet accounts, not your income or expense accounts but your balance sheet. I'm going to go ahead and click it. And I'm going to put in my opening balance. And of course I've forgotten what it is so let me click on it again. 9870.41. Okay, 9870.41. And then you pick the date. Now I already said I'm starting as of January 1st, 2016. There may be transactions on that day. Whatever day you say you're going to start using QuickBooks what you're actually doing is you're going to want to put the opening balance in as of the last second of the last minute of the previous day. So if we're starting on January 1st, we want to put the 31st of December as our date. Click OK. There's the balance, save and close. Now I'm going to run a balance sheet real quick just so that you can see what this looks like. There you go. And it automatically for those of you for accountants puts the other side into equity so that the balance sheet still balances. So you do that for every single account that you have until your balance sheet looks like this balance sheet. So you will do that for each one of your balance sheet accounts. And if you have to create a new one say we've got a second one here for office equipment right there. And if I go into QuickBooks I don't see one for office equipment. So I'll have to create one. Well, how do you create an account? You go to the bottom left hand button. You click New. And then it wants to know what type the account should be. Now these types are vitally important. For anyone that is – anybody who wants to get an accurate financial statement because whatever type you pick it determines where it appears on the P&L or the balance sheet. So if I click income type, where do income accounts appear? Chat David up and tell him. On the P&L or on the balance sheet somebody say something. P&L or balance sheet where do income accounts appear? P&L. Right. Whereas if I put fixed asset where do fixed asset accounts appear? P&L or balance sheet? Balance sheet. Right. So I'm going to click continue. And then if you have the number feature turned on you have to put a number. So I'm going to look and see. Furniture looks like it's account number 15,000. So I'll make this 15,100. Don't have to have account numbers. And then I'll make this equipment. The rest of these fields, the description and note field, and these are optional. People get really freaked out when they're creating an account. They feel like if there's a field you must put something in, otherwise you're going to freak out. This is QuickBooks Made Easy, folks. All you got to do is put the name and the type. If you have the number you turn it on. Now if it's a balance sheet account you will want to put the opening balance in. If it's an income or an expense account you don't need to. So I'll put an opening balance here. I'll click it. I'll make the date December 31. And then I'll put the number in right there. Let me just see what the number is. The number is 371959. 3719.59. I'll click OK. And click Save and Close. And now when I go back to my report and I refresh it, now it's getting a little closer. So this is what you'll go through. Now I want to take a couple of minutes to talk about what your chart of account should look like, particularly as it relates to your income and expense accounts. And this is where people really get messed up if they are kind of new to nonprofit accounting, and certainly if they need to QuickBooks. But let me stop for a second and see if anybody has any questions. Let's just take a couple of questions. I recognize that technically I'm supposed to be finished. So I'm probably going to talk for another 10 or 15 minutes, and then I'll just stay over to answer questions. But anyway, go ahead and let's do a couple more questions now. Okay. Patricia wanted to know if a nonprofit retained earnings is called Net Assets. Do I just change the name in the chart of accounts if the system will automatically close out this account at the end of the year? The system does automatically close out the account. And yes, you would change the name to Net Assets. Next question. My nonprofit is very small. There are no fixed assets. The only account that you would be adding then is probably cash. Account, new. It would be a bank account. You would click Continue. You'd put a number. And then you would put whatever your bank account is. I'll put Wells, Vargo, checking. And then you would click Enter Opening Balance and put the opening balance. Kathy asked, is it possible to enter historical data after entering the opening balances? Yes, you can. You can enter transactions before that start date if you would like to. But if you put in an opening balance as of that start date, and then you enter historical transactions, you're doubling up. Because say the balance in the bank account is $10,000, well that's because of the activity that happened before. So if then you enter deposits before that date, then it's going to double up. So I wouldn't suggest doing that. Several questions asking about how to turn on and off the account numbers. Sure. Here you go to turn off the account numbers. List, and then I'm going to move on. I'm not list. I'm sorry. Edit, Preferences. There's so many preferences that they're in different categories. I'm looking at the general preferences now. Now I'm looking at the checking preferences. Now I'm looking at the accounting preferences. I'm going to go over to Company, Use Account Numbers, you uncheck it. And then you click OK, and it's gone. The online people, here's your chart of accounts list. I got to it by clicking on the gear and clicking on chart of accounts. This is where you go to click New to create a new account. And to turn off account numbers in the online edition, you go to the gear, you go to Account and Settings, you go to Advanced, so I'll click on that. And Enable Account Numbers, you click on this, and you uncheck, and uncheck, and save. So now I'm going to spend, I'm cognizant of the time guys, but don't worry, we're going to get all your questions as much as I can answered anyway. We're going to stay late. So what should your income and expense accounts look like? As I said to you before, when you start your new company, you're going to get some income and expense accounts. And I don't like them. So what I recommend doing is deleting most of these. Certainly the income accounts, I don't like the way they're created. To delete an account, you simply click on it. You go to the bottom left hand button, and you click Delete. And when you do that, it deletes the account, and it's not there anymore. And so let me show you, I'll show you, this is kind of funny. The best way to teach you what your income and account should be is to show you the wrong way to do it. So what I'm going to do is I'm going to go to a file that is really screwed up, and I'm going to show you the wrong way of setting up your accounts. So here's my theory, here's my concept. What I want to do for you guys is I want to give the Board of Directors, and I want you to be able to give the Board of Directors a P&L compared to budget that's easy to read. That means I need it to be one page. If it's 5 or 6 pages, they're not going to read it. And maybe you don't want them to read it. I don't know. But listen, if you give them a P&L that has a bunch of different accounts, so it's like 15 or 16 pages, and they don't read it, later on when there's a problem with money, they'll be looking to you saying you didn't tell them. And you'll be saying, yes sure, it's on page 32 of the P&L. Listen, we need a one page P&L. Most of these Board members, they're there for other reasons. They're not necessarily great at the numbers. So we want to give them something that's easy to read. I don't know why this is happening. Let me try it one more time. See this is just like a real live situation. There we go. So the point is you don't want to have very many income accounts, and you don't want to have very many expense accounts. So I'm going to go to Reports, and I'm just going to pull up a P&L, and I'm going to make it all date. So here's what not to do. Do not. How many people have restricted grants? Go ahead and chat, David, if you have restricted grants. Say restricted grants are just restricted, or yes, there's probably a ton of you that have restricted grants. What's the most important thing you've got to find out about a restricted grant? At the end of the grant period, what do you have to report to the funder? What do you have to report to the funder? What do you have to tell the funder? I'm still getting the SS coming in. How the money was spent. This does not tell you if you have an income account called restricted grants, it does not tell you how the money was spent. So don't do this. This is not helpful. The other thing is it makes it confusing when you're trying to enter data. Say you get a foundation that gives you a restricted grant. You don't know whether to put it here or up here. So don't do that. The other thing I don't want you to do is don't have a separate income account for each one of your grants. That is ridiculous. There's another list that you track restricted grants from, and you track your grantors from, and it's called the customer list. Don't use the chart of accounts for it. Every single person listening to me right now should have these four income accounts, one for individual contributions, one for corporate grants, one for foundation grants, and one for government grants. The reason why is because that's how I have to report it on your 990 information return at the end of the year. We do about 25 audits a year, and that's how I have to report it there. And that is a great way for the board to say, you know what, how are we doing? You can look. You can see most of their money is coming from individuals and corporations, not very much from corporations or foundations. Maybe there's something that we're missing here. Maybe we're missing an opportunity. So those four. Now in addition to those, you are going to need to have some other income accounts for money that you earned. I just have this one thing called program fees. Maybe you have one for membership dues, one for tuition, if you're a school, one for sponsorships for maybe fundraising events that you have, but major categories. So just a few major income accounts. Now as much as people mess this up, they really mess up the expense accounts. So let's talk about the expenses. Now when it comes to expense accounts, most businesses, forget about the nonprofit world, most businesses, they have basically one thing that they've got to track about an expense, and that is what the type was. What's the natural category of it? Was it for rent? Was it for travel? Was it for supplies? Was it for salary? These are the natural categories the way people think about expenses, and that's how they fill out their business tax returns. It's major categories. It's just a natural way of thinking about your expenses. Now in the world of nonprofits, we have to track that too. Whenever we enter a check or a bill, you should be telling it whether it's salaries, health insurance, rent, postage, but there's another thing we've got to track. Every single nonprofit that fills out a $9.90, so maybe not the churches, but everybody else. They fill out an information return. They have to know whether the expenses are in one of three buckets. And what are those buckets? And funders want to know that most of your money is going into one bucket instead of the other two. What are the three buckets that nonprofits need to know about? Buckets of expenses, kind of a way of categorizing expenses into three buckets. What are those buckets? Let's see, program fundraising administration. Exactly. Program, admin, fundraising. People want to know that most of your money is going for program costs, not admin or fundraising. I don't want to donate to an organization thinking that 90% of their expenses are for raising more money. I want to know that it's helping feed the kids or whatever it is. So what people do, which is wrong, is they will set up an expense account for their programs. And if you're a theater, then these programs would be your shows. And they set up expense accounts for the shows. Wrong. Don't do that. Here we have a guidance center program, a conference, and we're, don't do that. What you should be doing, unless you're a church, what you should be doing, you shouldn't have a fundraising expense either. Your accounts should be the natural category, your expense accounts, health insurance, salaries, rent, postage, printing. These things are generic. A good rule of thumb is when I look at your expense accounts, they should look like everybody else's expense accounts because we all fill out the same tax form of 990. They shouldn't be specific to what you do. They should be generic. Well, where do we track program, admin, or fundraising? I'll tell you where we track it. We use classes for that. So I'm going to go and show you. I'm going to open up a new data file here. And I'm going to show you where you track program, admin, and fundraising. While this is opening up, I'm just going to tell you right now, you use the class feature for it. Now if you're a church, already mentioned because somebody asked, you'll be using classes to track your funds. But the rest of you, we have to put our classes in to get to the class feature. You've got to turn the feature on first. So we're going to go to Edit, we're going to go to Preferences, and then we're going to go to Accounting. We go to Company, Use Class Tracking, you check the box, you click OK, and here's where your classes are. They get turned on, you go to List, you go to Class List, and every single person listening to me, unless you're a church, you will have at least three classes. One for a program, then you'll have one for admin, and one for fundraising. Now if you're a small organization, you may only have one program. I don't know, if I help pets get adopted, then that's my program. I only have one. And then I have two more classes, one for admin and one for fundraising. Here we have three programs. So we have a total of five. To set up a class, you go to the bottom left-hand button, and you click New, and that's where you set up a class. You can have subclasses if you want. You can go in five levels if you want. Some people have that. You don't necessarily need it, but there you go. Now you bought yourself a little work because every time you enter a transaction, go ahead to the right check. Not only do you got to say what expense account it was, postage, but you also got to say what program it related to, the Guidance Center. And I know that some of your expenses need to be split. Maybe you bought postage, some of it was for the Guidance Center, and some of it was just overhead admin. But the benefit of that, and you do that not only on your expenses, but you do it on your income as well. If I get money in, I can also point it to a class. If it was money that went for the Guidance Center, I put it to that class. If it was unrestricted and it doesn't go to any program, put it to the fundraising class. But the point is every transaction gets pointed to a class as well as an account. And then look at what you can get. This is my big finish here, profit and loss by class. I'm going to open this up, and I'm going to blow you away. Now this is what I need to do your tax return. This is what I need to do an audit. And this is not something you'd show the board necessarily because that's too many columns and it freaks them out. But what it does is it gives you a great idea of how profitable you are. On the Guidance Center program here, we made $105,000. I'll scroll down to where the expenses are. Total expenses, $119, we lost $14,000 on the Guidance Center. That's why I want you to put all the unrestricted dollars in the fundraising class because only the revenues and expenses that relate to the Guidance Center will be in that particular column so that you can see whether the program is paying for itself. If you're a theater or you do performances, these would be your shows. So let me stop. I'll take a couple more questions and then we'll have one more little topic. It won't take a second and then we'll just go crazy with questions. Oh, let me show you about the online. If you're in the online edition, you don't have to turn the class feature on. It's already on. You don't have to turn it on. To get to where your class list is in the online edition, this is a little hard to find. That's why I wanted to show you. See a little gear here? We're going to click it. And it's going to take us to where the setup is. There it is. And you see this says All List. You've got to click that. And when you click All List, Class List right there. And this is where you get to your classes. All right, hit me up. Talk to me. Okay, let's see here. Misty said when I click Write Check, I cannot view or see my class selection on the screen. Yeah, so when Misty clicks Write Check, she can't see class. It's because your screen resolution needs to be adjusted. All right? So what you need to do is to go into where your screen resolution is and adjust it on your computer. What's the next question? What is P&L called in the nonprofit NPO world? Y'all tell me. What is the profit and loss called in the nonprofit world? If you looked at your audit, what would it be called? Somebody tell me. Income statement, Norris said? Not in the nonprofit world. Statement of activities, Susan. Bing, bing, bing, bing, bing. Susan's got it. Susan wins $10,000. TechSoup is going to pay you $10,000. Just a disclaimer. That's a lie. Yeah. It was both me and you, Becky. How did you jump in there? Boy, she woke up on that one. All right, next question. Let's see. So when we enter a program in the classes, do you actually enter the name of the different programs instead of the actual word program? Yeah. You enter the name of the program. Not just the word program. I'll take one more and then we're going to do the little budget thing real quick. Penny asks, is there a positive balance in any particular class from previous year? Can it be entered to keep running total? Yeah. So Penny wants to know if that class thing will roll forward. Some people, and this is people that use classes to track funds. And in a way, it does. I can create a report for you that shows you what the running balance is, but it's a report that's kind of beyond the scope of this class. We actually cover it in the Beyond the Essentials Training product, which I'll point out in a moment. So let me go ahead and show you how to do budgets. And then again, I'll stay on the line extra. I'm sorry, we ran a little long, but I like for you guys to have a lot of information. Hopefully this has been really cool for you. I'm going to show you how to do budgets next. It's so funny. I notice every board wants a P&L compared to budget, but most people are creating it outside of QuickBooks. They're doing it in an Excel spreadsheet which takes time. So this is usually, tell me if this is you. I can't meet with you this week. I've got a board meeting on Thursday. So I have to create the reports. And then you create all of these light reports that one board member asked for, and then that board member doesn't even show up to the meeting and nobody else cares. It's really kind of annoying. But anyway, I really want to make at least the budget to actual report. I want it one page and I want it easy to read. So you can enter the budget in QuickBooks. You can do this in the online edition as well as the desktop version. You don't have to turn it on. It's already there. You go to Company, you go to Planning and Budgeting, and you go to Set Up Budgets. And I'll go ahead and click it. And this is where you enter your budget. So it's pretty simple. If you want to enter your budget by month, you certainly can do that. We make $4,000 here. And then in August, we usually think we're going to get $4,000. In September, we're going to get $5,000. I mean, that's a lot of button-pushing. So let me do something to make it a little bit easier for you. You see Rent? If I click 2400 for Rent, I can use this Copy Across. I'll push it, and it copies it all across so that I don't have to type over and over again. The other thing that's really cool is if you budget by month and say something like Electricity, like here in Atlanta where I'm from, it's really kind of high in July, but then it starts to go down. So you see the Adjust Row Amounts? Check this out. I click it. I click Currently Selected Month, and I'm going to decrease because the electricity is going to start going down as it gets colder by 5%. And then it automatically enters it. Pretty cool. So that's how you create the budget. Once you created the budget, oh, I didn't mention, for those of you that do want to budget by year, in other words, budgeting by month is insane for you, put the entire budget in the very first month. Let me go to a different data file, and I'll show you what it looks like if you want to put the budget in the very first month. And I'll just go back to, I hope it doesn't freeze on me like it did the last time, and it looks like it's going to. Go ahead and give me a question or two while I'm waiting for this to open up, David. So Greg, actually I'm going to jump in quickly and just ask a couple of questions that a lot of people have been asking about. We had folks asking, where do you put in-kind donations and or endowments? So how do those get managed? Okay, in in-kind donations you'd need to enter by journal entry. You'd create an income account called in-kind donations, and then you would use a journal entry to enter it. There's not a button that says in-kind donations. So you would have to enter a journal entry where you credit the income account and you debit whatever the expense account is that you would have normally entered if you had paid for it. So let me just show you. I'll go to Company, and I'm going to go to Make General Journal Entry. And I know you guys don't like doing this, but you would credit in-kind contributions. So I'll go ahead and just create it since so many people were asking. And this is actually covered in my Beyond the Essentials Trading Product as well. There we go. I spelled it wrong, but that's okay. It's an income account. And to make an income account go up, you credit it, and then every transaction has two sides. Remember I said that in order for the balance sheet to balance. And then the other side would go to whatever the expense account is that you would have picked had somebody written you a check. If somebody is giving you rent at a discounted rate or free, you put that. So that's how that works. Endowments, that's an interesting question. I'm going to tell you to use a class to track endowment income. You don't usually have expenses from endowments because endowments by definition shouldn't be spent. Did I actually say that? It shouldn't be spent. But anyway, so let me just show you how to enter a budget if you're going to budget by year. Set up budgets. You put the entire year's budget in the very first month. That's where you put it. You put the whole year's budget in the first month. And then let me show you how you can get a neat report. Reports, budget and forecast, budget versus actual. You pick the year that you want to see a budget to actual for. You can do a separate budget for each year. I'll pick this one. I click Next, I click Next, and I click Finish. Now the first time you look at this report it's going to make you sick because for every single month it has four columns. July's actual, July's budget, which is actually the whole year's budget in this case, and then a dollar amount and a dollar variance and a percent variance. Four columns just for July. Then another four columns for August. Then another four columns for September. Ridiculous. A lot of columns. You see the show columns up here, right there? I'll make it be total only. And now we've got the actual, the budget, and the variance. So what I want to do now in the interest of time is I'm going to give you a couple of pieces of information that I know you're going to need. Then we're going to do questions. And we've got about 10 minutes left. I'm probably going to go another 5 or 10 minutes over to do questions. So the first thing I need to ask you is would you like to be added to our newsletter? We have a newsletter that basically it's an email newsletter that comes out once a month. I promise you you won't be bombarded. It's once a month and it gives you a little tip. It's basically a link to a YouTube video and I teach you a little trick and quick books. It's real easy, real simple, and I promise you it's not going to blow you up with a bunch of emails. I promise you there. So go ahead and just answer there. We'll give it another second. And then the other thing is I want to tell you I want to be able to continue to help you. Now we offer technical support where you can call and you can ask me questions. I can also dial into your software. I can remote in and help you for an entire year. And this is crazy. We did this one other time last year. We've only done it with TechSoup and I'll never do this again. Even in next week's webinar we're not going to do this. I'm going to give you the ability to get it for $99. For $99, if you write down this code, TS100, do not share it with anybody, TS100, and you will be able, you'll be able, it's this code right here. I think I can highlight it here. You will be able to get TechSupport for $100. Now the way to do it is you simply go to our website, QuickBooksMadeEasy.com, forward slash nonprofits. You click that you want to buy the TechSupport and you'll get it for $99 when you put the code in. You can call me for an entire year. And I do answer the phone at night and I do answer the phone on weekends. So with that, I think I want to turn it back over to, let me turn it back over to you, Becky, and then finish this up and then I'll stay on the line and do questions as soon as you're done. Terrific. Thank you so much Greg. And for those of you who didn't get to respond to the poll to opt-in, we will include a link to opt-in to that newsletter directly. So in that follow-up email just look for that. We're moving quickly through a lot today so we just don't want to leave you hanging. If you want to sign up for that newsletter, we'll make sure you can do it. Quickly before we get back to a few more questions with Greg, I want to just mention the donations available through TechSoup's program. So if you go to TechSoup.org slash into it, you'll be able to access donated QuickBooks Premier 1 user, QuickBooks Premier 3 user licenses, and QuickBooks for Mac. QuickBooks Online yearly subscription is currently out of stock but we hope that it will be back in stock soon. So if you're looking for the online version, keep checking back. Subscribe to our newsletters by the cup or the product alert newsletter so that you can learn right away. It will be a top headline on our homepage once it's back in stock. So keep your eyes peeled for that. The coupon codes that Greg shared, Greg, how long are those valid for? It's available for 48 hours starting now. It will end on what is this Thursday? It will end Saturday night at midnight West Coast time. So you've got a little bit more than 48 hours and you'll never see it again. That's great. So you've got 48 hours to do it. That's terrific. Thank you for doing that, Greg. And then you should also look for those newsletters from TechSoup coming soon that will announce when the QuickBooks Made Easy Essentials training comes back in stock. So we have a new set of trainings that Greg has created for us so that's going to be back in stock on our site soon as well. For QuickBooks donations, the actual software programs, 501c3s, and public libraries are eligible with operating budgets of $10 million or less. If you're a legislative, political, or advocacy organization, you are not eligible for the donation and that's a restriction that Intuit has chosen to adopt. So we are beholden to follow that. You can go to that TechSoup.org site. You can browse by donor or partner to get to the Intuit page right there. And then you'll see the different products listed where you can view the differences, the details, the specifications. All these details are available on our site at TechSoup.org slash Intuit. We'll include a list of resources that are available for you to learn more. Some of these are prior webinars we've done. So if you're on 2013, 2012, 2014, we have trainings that we've done on those versions that you can refer back to. You can find many of these on our website currently as well. So if you go search QuickBooks on the TechSoup site in the search bar, you'll find many of these resources available. And we'll include this in the follow-up email. Before we get back to a few questions, actually you know why don't we get to a few more questions right now instead of doing wrap-up? So Greg, we had a lot of people just trying to figure out how to decide on which version to use. Some people are trying to move from quick-in. A couple of people mentioned that they used Peach Tree. I know that you did some comparison between the online and the desktop in the webinar we did back in October. So people should look to that if you want to compare online versus the premier desktop installed version. But how do you recommend people to decide? Greg, I don't know how I stopped doing this. It's all over the place by little errors. There we go. Thank you. So here's the deal. The online edition is fine if you're a really small organization. If you don't have any employees and you don't have restricted grants and you're really tiny, I'm okay with the online edition. If you have employees, and particularly if you want to split the employees between different programs, admin, and fundraising, then you probably need to get the desktop. Same is true if you have a lot of restricted grants that you want to track. But if you're real tiny, you don't have employees, you don't have restricted grants, then the online edition is probably fine. We have training product that will teach you how to use both the online edition as well as the desktop. But if you're going to get the desktop version, you want to get the premier nonprofit edition 2016. Not only is this the best choice, it's also the cheapest. Now if you have the Mac and you want to stick with the Mac version, they have QuickBooks for the Mac. And that's very much like the desktop version so you'll be fine. What's your other major question? I think that's terrific. And since we are kind of at the top of the hour, I'd like to go ahead and just one more time show those coupon codes so that you don't miss the opportunity for that. And we'll get a couple of poll questions in here, and then maybe we'll have time for a couple more questions and we'll know how our folks on the back end to keep working. Notice too, and this is good for 48 hours as well, that Beyond the Essentials product covers a lot of the more advanced stuff that I mentioned. And this is a code to get it for 179. It's TS-15. This is only good for 48 hours as well. But the main one that I know everybody is going to get is that, because that's just insane. All right, so do you want me to go ahead and share the screen and start doing questions again? Are you done or how do you want to do this? You know, I'd love to go ahead before, you know, in respect of people's time, try and wrap up with a couple of poll questions and then let folks get a couple more questions answered. So for those of you who are on the line still go ahead and click on one of these. Tonight what are you going to go home and do or go back to your office and do? Are you going to try and implement everything you've learned? This has been too overwhelming. You're going to go cry into a pillow. Maybe you're going to go home and put on some very white and try and relax, drink some wine, relax with the family. Go ahead and select some of those options. And that's really more just for fun. But we really do want to know what you learned today that you're going to try and implement. So go ahead and chat in one thing that you learned that you're taking with you today that was an aha moment that we know that you can go back and change how you're managing your QuickBooks or help you in setting up your QuickBooks so that we know what worked, what didn't work. You'll also have a chance after the webinar wraps up completely. You'll get a pop-up window with a survey where you can tell us what you thought, rank it, and give us any feedback as well as suggestions for upcoming webinars that you'd like to see us offer as well. So I love the answers coming in right now that people are going to implement everything they learned or they're going to relax with their family. I think you should do some of both. So that's great. And like I said, you can also share this with your network. We will be sending out the archive with the full recording and the resources. So you'll get that within the next couple of days and you can share it with any of your colleagues who may need this as well. And I believe those are all of your children, aren't they? Absolutely. All of them are for children. She has 17 children. 42 now. Didn't you know? I've been active. But you can also see our upcoming events and webinars. So we didn't include next week's webinar on this list because we are trying to cap these so they don't get too huge for us to manage. But I did include the link out and chatted it out in the chat window just a moment ago. If you do want to try and sign up for the webinar for existing QuickBooks users, you can do that. You can also join us for Adobe Photoshop for Advanced Beginners. So if you know what you're doing sort of and you want to learn more, join us on the 10th of March. And then we'll be talking about digital literacy training for libraries. We'll be doing a tour of TechSoup on the 29th. If you are new to TechSoup and want to learn a little bit more on how we work, and we'll be spending some time doing a very similar kind of training on hand, step by step, Excel for beginners on the 31st. We want you to join us for that. So let's go ahead and jump back into some questions. But we really appreciate all those comments coming in, and we'll spend a few more minutes here before we close out trying to get a few more questions answered. Let's see, we had questions. A lot of people asking how to manage the unrestricted net assets, temporary restricted net assets, permanently restricted. Is there a way to distinguish between those, and how do you recommend doing that, Grace? Sure. Okay, so for those of you that don't understand the question, don't worry about it. But let me just tell you, and this is probably coming from more accounting type people, in the chart of accounts list actually, well actually you know what, I'll just go to the balance sheet and show you. Retained or equity is supposed to be split into three pots, unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. The thing is, and this is an accounting thing, almost everything goes into unrestricted net assets except for restricted grants that you haven't spent the money at. That amount goes into temporarily restricted net assets in the equity section. The only thing that goes in permanently restricted are endowment funds. Well, there's no way to get QuickBooks to track or to do entries to move things around within the equity section. QuickBooks automatically closes everything to retained earnings. So what I would suggest doing is to create the three other accounts in the equity section. And again, don't do it unless somebody is wanting it because it's really not necessary. I do this when I do your audit at the end of the year. So it's not something most people understand, but if you wanted to know, so here's unrestricted net assets, and then you'd have another one for permanently, and another one for temporarily restricted net assets. And then you'd have to do a journal entry. Every year it's going to close everything to retained earnings, and then you need to do a journal entry to move it out of retained earnings and move the right balances into the three buckets. I'll just leave it at that. If you need more information about it, you can get me with the tech support because I don't want to confuse people. What else do we got? Becky, well we had a number of people asking, where do you track the donations you get from a fundraiser? And you've mentioned that, but I don't know if you showed where that was. Yeah, all the donations, you enter them, basically your donors, and we'll cover some of this next week. Your donors go in the customer list, and then, and I'll just go to the home page, there's a form that you use to enter donations. And in the nonprofit edition it's called Donations. Here it is, but all it is is a sales receipt. And we'll teach you how to do this next week, and I know if you didn't sign up for it, you can get it afterwards. But here's where you put the name of the donor, and then you put, you know, they gave an individual contribution. And then this stuff can be put on reports. You can turn this into a thank you letter. This is really very cool, but that's the form you use. If you are using the Macintosh version of QuickBooks, or you're using the online edition, either one, I know I'm going a little fast here, you go to sales receipt right there, because there's not going to be something that says donation in the Mac version or in the online edition. What's the next question? Well, we have some folks saying, you know, if we're a totally new nonprofit and we don't actually have any money, how do you start your balance sheet? What do you do when you're starting from zero? If you start from zero, then it's real easy. You do everything that I said. You set up whatever balance sheet accounts that you need, and I would imagine you would open up a checking account at some point. But when you open up your checking account, when you entered into QuickBooks, don't put an opening balance, because the opening balance is zero. So you're actually easier than the rest of us. Again, you go through the little setup, you enter whatever balance sheet accounts you think you need at a minimum, I would say a bank account, then you go and you open up a bank account with some money in it, record the deposit in QuickBooks, and then you're good to go. Then you can start entering transactions. And I do want to say, you know, we really didn't talk about how to enter transactions here, did we? That's something that we're going to cover next week. But anyway, go ahead and ask me any questions about what you want to know about. Okay. Well, we've got some questions just about how to use the desktop account if you've got multiple people accessing it. We have a bunch of people going, can we have three people use it at the same time? What do you recommend for that? Do they have to have a specific type to access it? Here's the deal. Legally, when you load the software, and I think I have, if you have more than one person using it, let me go, I wonder if I still, let me go to TechSoup again. When you load the software, you really need a multi-user license if you're going to have more than one person using the file at the same time. And you load it onto each computer. And then what you do is basically the program is loaded onto each computer, but the data file exists on the server. And then three people can get in at once. And the reason why I'm doing this is because I just want to show you where you would go to get the three-user license one. I'm going to go ahead and click QuickBooks in the search bar here. And then we'll scroll down to here is a one-user license, which is $50. You're going to want to get a three-user license. This normally costs like $750. You can get it for $125. Then you can have multiple people in at the same time. The other thing you need to do if you have to have more than one person in at once is you've got to set up different users. So I'm going to go to the company menu, and I'm going to go to Setup Users. And here's where you can set up individual people. I only have – whenever you start QuickBooks, there's already one user. It's called Admin, but you can add other users. So I'll click Add User, and I'll put you Becky. I don't know if I spelled that right. And then I'll put a password. And then you can control whether or not Becky can get into all the areas or just some of the areas. It's kind of nice. We'll give her access to all areas because we trust her. And then basically, the benefit of that is that when she logs in, she'll have to log in with her username and password. And then QuickBooks has this little thing called the audit trail, and it tracks who did what. So if Becky does something and screws it up, we know it was her and not the admin. Anyway, next question. Becky, your first mistake is trusting me from there at all. I am not your QuickBooks expert. With that in mind, I actually want to go ahead and wrap us up since we are 10 minutes past our time already. So we appreciate all of those questions that are out there. We've done our best to answer a lot of them, nearly 200 questions answered on the back end, and still 100 in queue. So I'm sorry we weren't able to get to all of them, but I want to go ahead and once again remind you where you can go to access the donations if you're needing to upgrade or if you're needing to access QuickBooks for the first time as a nonprofit library, church, foundation. Many of you can access this. The one user license, three user license, QuickBooks for Mac, and then the QuickBooks Online Plus will be coming back soon, we hope. So watch your email for more news on that. I'll point you again to these additional resources that we have available on our site, and there are many more. So if you search, you'll find tons of resources that can help you manage your QuickBooks, get it set up, create your chart of accounts, get all of that kind of stuff organized. Thank you so much, Greg. We really, really appreciate you taking the time to share this. And we look forward to doing it again next week. We shared that link out in the chat, so feel free to join us. That one is specifically geared toward existing nonprofit users. So for those of you who are brand new to QuickBooks, it will go fast and we may cover things that you're not totally familiar with, but you're welcome to join us. And again, we have these other webinars coming up too. I'd like to quickly thank ReadyTalk, our webinar sponsor for providing the use of their platform to make these events available. And please take a moment to complete the post-event survey once it pops up when you close out. And I'd like to thank Kevin, Susan, Allison, David, and Karen on the back end for really working their tails off to try and get questions answered as they came in and help you with your technical issues. Thanks to all of you for joining us today, and we hope you'll join us again next week. Thanks so much. Bye-bye.