 In this presentation, we will take a look at the statement of financial position or the balance sheet for our not-for-profit organization. Let's get into it with Intuitz. QuickBooks Online. Here we are in our not-for-profit company or not-for-profit organization dashboard. We're going to be opening up the balance sheet report and taking a look at formatting it. Let's go down to the reports on the left-hand side. We're going to be going into our balance sheet. So we're going to be opening up then the balance sheet report. Once open, we'll check the dates up top. Let's make the dates to the end of January, which is going to be 013120. So January 1st through January 31st. Then run that report. Then we're going to be duplicating the tab up top. So I'm going to go up to the tab up top, right-click on that tab, and we're going to duplicate that tab. So then we have the balance sheet to the right, and we can do stuff on the left. Now the first thing we want to do with the balance sheet, I am going to make one last adjustment. And that is for this undeposited item down here. So you'll recall we made a transaction and we got a deposit. We never put that into the checking account. So I'm going to go ahead and deposit that. So we had a deposit. It's here. We're going to go ahead and deposit that into the checking account and then continue on. So we're going to go back on over to the first tab and make that deposit. And within the first tab, we're going to go to the plus item. We're going to go down to the deposit on the other side, other section. And we're going to go to the deposit. We're going to be depositing into the checking account. Let's put this in January. So I'm going to say 01, let's say 220 to just make sure it's in January. And there's the deposit that we want to make. So that's the one I'm going to be checking that off. And this, of course, being a deposit as we've seen in the past will increase the checking account. And it will decrease the undeposited funds as this deposit came from a sales receipt. So I'm going to go ahead and say save and close on that. And there we have it. Now let's go back to our balance sheet on the right hand side. Let's close up the hamburger. Let's scroll back up top and let's run that report. We'll run that report. And now we have in the checking account that 97,540. I'm going to hold down control and scroll up just a little bit to get up to that 125. Let's first consider our balance sheet in our Excel worksheet. So we made our Excel worksheet. This is basically the balance sheet for our not-for-profit organization that we constructed a not-for-profit in Excel. If we look at the balance sheet, the first thing is the name. We're not going to call it a balance sheet. Typically we'll call it a statement of financial position. Not sure why we need a different name, but that's, it is what it is. We're going to have to call it a statement of financial position. Same kind of thing where we stand as of a point in time. That's what the balance sheet is. Where do we stand as of a point in time? Three major components of the balance sheet being the assets, the liabilities, and then what would be called, depending on the type of organization, the equity section, partners equity, corporations, stockholders equity for the corporation. For non-profit, it's going to be called net assets. And that's a good way to think of it, no matter what type of organization, because it basically represents the assets minus the liabilities. You could think of it as kind of like the book value of the company. So that's what we have here. We got the assets liability, net assets. Of course, the net assets, if we were to add them up, are going to be the sum or add up to, I'm sorry, the liabilities and the net assets are going to be adding up to the assets up top. And that's going to be what a balance sheet is. So that means we're going to be in balance. So under the assets, we've got the asset type of accounts, which will be broken out in essence by liquidity, just like with a normal financial statement. So we start with cash typically. Then we've got the accounts receivable. Then we have the property, plants, and equipment, the long live type of assets. That gives us our total assets over here. We then have our liabilities, including the accounts payable and salaries payable. And then that gives us our total liabilities. And then in the equity section, we're going to rename that, or it should be called for the not-for-profit net assets rather than equity. And we need to break that out. And this is the key kind of difference for this reporting, the key kind of problem that we need to do. And it's a problem with any kind of organization. If it's a partnership, you've got to break it out between the partners. If it's a corporation, you've got to break it out between retained earnings and the investment of the common stock. If it's a not-for-profit, you've got to break it out between the net assets that are restricted and unrestricted. So we talked a bit about that last time and how that kind of interacts with the trial balance in a prior presentation. That gives us our total net assets. And then of course the total liabilities and net assets are going to be equivalent to the assets up top. Let's compare this to what we have in QuickBooks. If we go on over to QuickBooks, the first thing we realize is the name is going to be a problem because it says balance sheet. So we could change that. It is possible to adjust the name here. You can see you can click it and adjust it just in this format or you can adjust it up top if you go to the customize area up top. So you can adjust it here, or you can go into the customize and in the header and footer section we can change the report's title. So I'll go over and copy so I don't misspell it. Plus I misspelled it in here too, which could be possible. I could misspell it. And then I'm going to say bring that on over to this one. So I'm going to put that there. And then we can save that report. So then I'm going to run that report. Now, we can then save this. If we want to keep that as the default all the time, we could save this. I know it's capitals here, not capitals. There that might be a little, you know, not consistent. But, you know, whatever we could put that in there. And then we could save that and we could save this report. So we can always open it back up and not have to basically resave or we put in the account name. So then if we go down to the activity, you can break this thing down with these little arrows. So these little arrows, I can break these down to the major components, the major components being assets, equaling liabilities and equity. Now, right off the bat, this is the accounting equation. Notice that equity is over here. You can't really change equity. I can't change that because it's kind of like an account type setting set up in QuickBooks. In other words, that's in the programming. That's in the kind of code. So you can't really change that to what we would like it to be, which is to say net assets for the not-for-profit organization. So we're going to change the account types, but there's going to be some kind of terminology we cannot change. Within the system, we can however export the report and then make those little adjustments in Excel if we want to do it in that format. If we then open up the assets, we're going to say assets. Let's open that up. We then have the categories, the major categories being the current assets and the fixed assets. So the current assets and the fixed assets. If we open up the current assets, then we've got the cash account and the checking account. Now notice we have the current assets and the cash account and the checking account. Now notice we have a zero balance up top. That's because there's been activity basically in this cash account. The checking account is our major checking account. Now we also put the account number in the checking account for internal purposes. So if I jump back over back and forth and I have multiple checking accounts, then that helps me. But I may want to group up all the bank accounts like this, which we can do and just say, this is all the bank accounts right there. And that allows us that kind of sub accounts or in this case, not a sub account. This is just the category of bank accounts. It's an account type. That's where this dropdown comes from. Then it can help us to kind of create accounts that'll help us for internal reporting and then basically hide or collapse the column for external reporting. And then we have the accounts receivable. You might ask, why do we need this subcategory if I have the accounts receivable? This is an account type. So a QuickBooks needs that account type so that it can guide the accounts receivable, which is an account that acts a little bit differently. Also note that we have these other two items down here, which are basically contra accounts to the accounts receivable, which we couldn't put in the same subcategory because we can't really assign a customer to these two items and therefore had to put them in here down below, which is a little bit ugly. And again, we can't adjust that when we export this to Excel because we really don't need this separate subcategory or this subcategory. Those are kind of internal uses for QuickBooks to help us with the account types. They may not be necessary for... And we could collapse these as well, but we really want these two items to be next to the accounts receivable or a component of the accounts receivable. So that's just a little bit. And then we have the undeposited funds, which is a zero account at this point, then the total assets. There's the total asset or the total current assets. Then we have the fixed assets, which includes the equipment and the accumulated depreciation. Again, these two are backwards. You'd like it to be equipment and then accumulated depreciation, but they're in alphabetical order because we're not using the account numbers. So that is what it is. And then we're going to go down here and you could change it with account numbers in order of those two. And then we have the liabilities and equity. So equity is a bit of a different term. That's not a big problem, but it's something we can't really change because it's part of the formatting. And then within that section, we have, of course, the liabilities. So the liabilities including the current liabilities and long-term, all we have are the current right now, including the accounts payable account and the other current liability accounts. And then if we go to the equity section, then we have the net assets restricted and unrestricted, which we broke out properly. But again, we have this kind of problem with the net income because the way QuickBooks works is that ties out to the income statement. They're trying to help us out there, but it kind of messes up our reporting purposes because I don't want to see one account called net income. I want it broken out between the net assets section properly so that we can then present this report to someone else and tell them, hey, look, this is the restricted of the net assets, but bottom line, this net income will tie into the net income on the income statement, and it rolls over on a yearly basis, not on a monthly basis. So just keep that in mind when you're tying this out to the profit and loss and the income statement. And then as we saw in a prior presentation, this restricted item should tie out to the restricted items when we have the detail report that we broke out by job or by class. I won't go into that again in detail because we saw that in a prior presentation. The limitations here are that the equity section up top is not labeled net assets because, again, this equity section is an account type. It's like the programming of QuickBooks. It can't really change the name of that, but we do change the names down here so that we can see it in this format and we can then export it to Excel and make the change there for the name if we so choose. So the only thing we really changed is the name up top. You could do a lot more formatting here. You can get rid of the pennies, the cents if you so choose and format the font and all that kind of stuff. I won't get into a lot of formatting here. For that, you'd want to look at a general kind of QuickBooks course if you want to get into the formatting. I do have other courses on formatting of that. And then I'm going to then we could save this or memorize this report which is a nice feature. So I'll go up top in order to do that and we'll say we want to save the customization. Basically saving the name and then the customized report is now called the statement of financial position which is what we want and so I'm going to go ahead and save that. I want to say I want to save it in the statement of financial position and then if we were to find that what we would do is we're going to say, alright, I'm going to be risky and just close this out and go to the reports. I'm going to go to the reports down below and say every time I want to open basically a balance sheet up then and I want to report it externally so I can have the correct name on it. I'm holding down control and scrolling down a bit to get back to 100. I'm going to go to the custom reports. So within the custom reports there it is. There's the statement of financial position opening that back up and now it'll already have the name changed that we have and if you want any other kind of changes with the font and whatnot you could do that here as well and then save them. Now what you can't save of course are some of those items that you might want to do and mix the minor tweaks in Excel. Anything I said, well we could still change that in Excel you can and we can do that really easily. It doesn't take too much time but it's not something that you can make the changes all the time, right? It's not something that I can memorize and not have to change again and that's the problem with it. So this report is pretty much what we need. This report would be fine if we gave it to somebody else but obviously we could make some minor tweaks to some of these areas that we took a look at if we wanted to make it go above and beyond for end of the year reporting or something like that. So we could then export it and let's do that. Now if we're going to give this to somebody else, our options then if we give this to the board or for emailing it out or something then our options are that we can simply email it here but we might have multiple reports. So this is great if you email one report but if you got any more than one report then you have multiple emails which is kind of ugly so we could or you could save it as a PDF file and attach the PDF file to the email and then you can attach multiple PDF files which is nice but then again if you have a lot of reports that gets kind of messy so you can zip the file the PDF file so you have one zipped file if you want to attach multiple reports or you can actually use Excel to make one PDF file and I'll show you how to do that by exporting these to Excel and then making one PDF file that you can attach with multiple reports on it and there's also an issue with collating it if you if you want to then print this out for somebody and you have one like office printer how can you do this and print this out so it's pre-colated you don't have to go into sort it and it's easy to use Excel to do something like that to do to format it in that way so what I'm going to do is I'm also going to use a acute PDF printer to help us to print it so just realize that you can download it here so I can download it as a PDF file but I like to just just mention this acute PDF printer because that's going to be useful anytime you you don't have access to a program that says hey print it as a PDF or save it as a PDF but you do have access to printing the screen in some way shape or form so let's pretend I can print it here but let's say I want to I want to save it as a PDF but I'm going to use the printer to do it so I'm going to use the printing option and then I'm going to go ahead and say I want to print this but the destination the printer I'm going to use is called a acute PDF the acute PDF printer writer now you can look this up it's a free program I would try to have some kind of PDF printer writer option because it's really a useful thing to have again if you don't have if some report doesn't save as a PDF you can have this again you can look it up you know search it in your favorite browser and you should be able to get this for free and and then I can say acute PDF printer and then go ahead and print this and then it'll print as a PDF so I'm going to go ahead print that and just practice using that PDF we will also use it to put multiple reports in one PDF file which is which is useful it's a useful tool so where am I going to put it I'm going to put it into this QBO not for profit files I'm going to put it there and then I'm going to call it I'm just going to say statement of financial position and then I'm going to save it there so I'm going to say save that alright so there we have that now I'm also going to export it to excel to show how to do that so we can also export it so I'm going to select the drop down up top I'm just simply going to export it to excel obviously you do need excel to do this so you it's got to integrate with excel in order to be able to do this exporting so then it's going to open up here I have it in chrome so chrome has this little bar below if you're in some other browser may have some other area that it's going to open up into so here it is in excel I'm going to go ahead and enable the editing so I'm going to enable the editing and there we have it now typically what I'll do once it's here is I'll take a look at it in the layout side and just check it out and see what it looks like in the page layout make sure it fits on one page wide and then I'll go back to the normal view that's in these little items these views down below you can have them there in other places too but then I'm going to go back up top and then you can think about the formatting so we've got the statement of financial position we've adjusted that formatting we've got the assets up top we've got the current assets the bank accounts now again you might say hey I don't need this clearing account so if I was just going to clean this up a bit I could take this whole row say I don't really need that I can say delete that if I if I want to and also you could make some more different summary reports in in quick books to to to to shorten this up as well but then notice this has a cell reference so I just deleted a cell so I'm just going to say I delete that item and there we have that and then the accounts receivable you'll remember had the accounts receivable but these contra accounts should really kind of be in in the receivable so this whole subcategory of accounts receivable isn't all that helpful to me really I'm going to delete the whole subcategory I'm going to say I don't really need the subcategory here I just want the accounts receivable I don't need the total accounts receivable so I can delete that subcategory if I if I wanted to clean clean that up and the other current assets I don't really need all these any of these subcategories I'm going to say other current assets don't really need that subcategory and that puts the accounts receivable kind of close to these two contra accounts which is what we what I want the total bank accounts I don't really need that either so I could say total bank accounts I don't need that I don't need that subcategory I don't really need the bank accounts subcategory and then the checking account if I want the checking account I could I can remove the number obviously this is more formatting than you might want but so then the undeposited funds don't really need the undeposited funds so I can delete that item if I want and then the total current assets is going to be the sum of all these equals the sum of these items so that's going to be the total current assets total I'm sorry the total other current assets I don't need the total other current assets the total current assets then is the sum of these items so that we have that and then we got the fixed assets and again you may you may want to adjust the order of these I know I'm doing a lot of formatting here you don't need to do all this but I'm going to say insert and then I'm going to take this one and I'm just going to drag it up to the top so I'm going to drag it up to the top and so there we have that and then I'm going to remove the insert and then so I'm going to right click on this item and delete that and so there we have it and so there's the total fixed assets and then the total assets down below and then we have the liabilities so liabilities and again I don't really need the accounts payable subcategory so I can get rid of the subcategories I just want the current liabilities so I don't need that I don't really need the accounts payable subcategory I can delete that and then the other current liabilities don't really need that subcategory I can delete that and if I if I made this summary balance sheet it would have less categories than this in any case but then I have the other current liabilities don't really need that and so I'm going to delete that and then we have the total liabilities which is the sum of these items and then we have the equity which really should be the net assets net assets and then we have the net assets restricted and unrestricted notice once I rename this to net assets I may not want restricted and unrestricted I might just say I just I don't need to say net assets again I could just say restricted and unrestricted and then the net income notice the net income should be part of the unrestricted these two should go together so that should be the 44244 so so really this should be 44244 and this should be gone because that net income isn't part of a balance sheet typically and then I can delete that and the name here should be not total equity but total net assets so we'd have that and that's going to be the sum of these two and then we have the total liabilities and this should be named net net assets alright and so then again we have some bold and non-bold kind of things that you can do on the formatting but that's probably more than you need but just realize that you can make some of those changes here in Excel so you don't have to make all those changes but then I can also change the negative numbers so I like to see the negative numbers I can right click and format these cells and say let's say I want to make them currency and I want to see the bracket or the negative numbers red and bracketed let's say I don't want the pennies I can remove the decimals and we can say alright let's check that out and so now we can we can see it in that format and then if we compare that to the Excel sheet that we had here so looks pretty looks pretty good so that looks pretty good that's just some examples of the formatting that you can do is AP I probably don't need this AP here and so on you don't like I said again you don't need all that formatting but anyways now I'm going to save this we're going to do the income statement next time I'll save the income statement and then we're going to put this in the same worksheet and when it's in the same worksheet then we can actually print this out if I needed to print like a hundred copies I don't have to print them separately and then collate them put them together in order to get the Excel worksheet and they'll be already collated or I can export from the Excel worksheet to a PDF file with both of the sheets on it so then if I had two reports or five reports even if I had a lot of reports I can send it on one PDF file rather than having multiple attachments so to do that let's go ahead and say save this I'm going to go to the file tab up top file tab and we're going to go down to save and I'm going to be putting it in the files and see where we want to put it so we're going to say browse once again I'm going to put it in this QBO file and I'm going to rename it not as a statement of next position but just as the financial statements because I'm going to add another financial statement to it so I'm just going to call it financial statements and then we'll add to that we'll add to that with the income statement next time or the statement of activities so let's go ahead and say save so we have that and that's going to be it for now let's get out of here