 In this presentation we will record a transaction related to a cash donation into our not-for-profit organization Let's get into it within to its QuickBooks online Here we are in our not-for-profit company dashboard. We're gonna head on over to our Excel file within the Excel file We're gonna be on the second tab. So we're in the second tab second item, which says we have a fun drive We got the cash of the one eighty nine seven thousand We're gonna record this basically all is one transaction here. So this would be a similar transaction Every time we're gonna receive obviously a cash donation So this would be our primary type of journal entry if we're receiving cash donations typically We're gonna be increasing it from a journal entry standpoint that you check the two accounts affected will be the cash being increased So we have an increased a cashier the other side go into the contributions without donor restrictions And that's gonna be kind of like our income statement type of account or income account Type for a for-profit organization Recording that then cash going up on the balance sheet the other side then go into our income type of account So that's gonna be our transaction. We're gonna bring that back on over to our QuickBooks file. We're gonna use our standard type of form to do that. We're gonna use the same form last time This is the standard more general journal entry Probably should have started with this transaction first right with this is gonna be the Standard here the sales receipt. So we want to go into customers and then the Sales receipt this is gonna be the donation form. You'll recall it says sales receipt up top However, when we print the form it will say donation because we changed that item in it Then we're going to say this is gonna be donor To I'm gonna make a generic name. So this is gonna be the second donor We're gonna say I'm gonna add this donor as we go We would want the information from the donor with our contact information that send them our newsletter and so on and so forth But for the purposes of the practice problem donor too is what the name is gonna be I'm gonna select tab So let me type that and again, we've got donor to Tab so I'm gonna set that up. I'm gonna use a quick setup I'm gonna say save on it and then I'm not gonna put an email But if we had the email then of course we could send this out more quickly the billing address here And then we're gonna say that the date let's make it the second So we're gonna say this happens on the second and we're not gonna have any tag payment method We could say whatever the payment method will be I'm gonna say cash in our case and then Here note last time we put it into this clearing account because it wasn't really a cash donation It was actually something other than that and therefore we took it in and out of the clearing accounts The standard options for the cash donation are either we put it into Undeposited funds or we can put it directly into the checking account now We haven't set up the checking account so we'll have to set up the checking account But if we had set up the checking account It would be an option here and we can't set it up as we go if we choose to however Typically if you're see if you're receiving cash donations, it's you it's useful to use this under Undeposited funds so we got the undeposited funds on this item Because then it'll go into the undeposited funds and then we can go to the bank We can imagine taking all that cash to the bank at the end of the day Putting it into the bank and recorded it in the system as that lump sum into the system That's beneficial because we want to be able to do the bank reconciliation And it's gonna show up on the bank rec or the bank statement in the format of the deposit that we put in at the end of The day and therefore we want to put it in our system in the same grouping once it hits the actual checking account That will make the bank reconciliation easier so whenever you're thinking about deposits That's how your mindset wants to be how can I put this into my system here? So it will match the deposits in the format that they will be seeing on the bank statement And one method will often be to use this Undeposited funds now if you are getting all checks and you're entering the checks like into the bank as you get them Then you may be fine just entering it directly into the checking account Because because that's how they'll show up on the bank statement and you don't need this added step But if that's not the case if you have credit cards You often have similar kind of situation where you have to think about how you're gonna get those grouping of credit cards to show Up in your system to match to the banking system And if you're collecting cash then typically you have the same kind of situation if I just keep on putting in $5 cash amounts here I could probably tie it out to the end of the day But I would rather put it make it go through the undeposited funds account So that's gonna be that transaction. I'm gonna say the date. I'm gonna keep the same date on 010220 I'm gonna make the product is gonna be the donation same same item that we set up last time So the donation will then populate for us that item then is driving This donation to be going to the proper income account So the item will help us not to need to know then what's gonna happen to the financial statements, right? The idea here being that somebody that doesn't have a lot of experience with setting up the item or with Knowing what happens with the financial statements can still populate the sales receipts and make collections So I can imagine here. I'm making collections during the day that add up to this amount During the week or however long a month however long it's gonna be and then I can easily make those collections and make the sales Receipt or donation receipt here without having to know how to set up this donation I just simply say hey, it's the customer. Here's the donation receipt and that's it and not having to know What's the effect on the financial statement because that will be driven by the item which we set up last time? So we're gonna say this is gonna be the 189 7 189 7 and these are all gonna be going into Unrestricted so I'm gonna say unrestricted I'm actually gonna put it into the unrestricted for the fundraising So let's put it into the unrestricted category the subcategory of the fundraising now also note that as you set up this Donation when we set up the item it is possible to set up the class when you set up the item and therefore when you when someone Populates this information. They won't have to know about the classes either it should populate automatically as they enter this information Into the system. What's this gonna do when we record it? Well, it's a sales receipt So therefore it's gonna increase some type of cash account in our case the undeposited funds account The other side then go into the revenue account the revenue account being driven by this item the donation item Which is gonna be the the contributions unrestricted it will also put it to the class Which is gonna be unrestricted so that we can see it when we run the report of the income statement by class Let's check it out. Let's go ahead and save this and See what happens. So we're gonna save this and I'm gonna close this back out. I'm gonna open up then we got the hamburger open We're gonna go down to the reports reports on the left side We're gonna open up our two reports balance sheet and income statements. So let's open up the balance sheet reports Let's run the report for the year of 2020. So we're gonna say oh one oh one two zero to twelve thirty one two zero Then we will run that report run that report and then here we have the Undeposited funds now now notice it's pretty much a cash account But it's just not in the checking account yet You can imagine us doing multiple transactions that add up to this amount for example And then we need to go to the bank and deposit it and so then that's what we're gonna basically do next time It's put that into the bank the other side then it's being included in the equities included in the income statement And so we're gonna have to go to the income statement to check out the other side I'm gonna duplicate the tab as we saw last time. I'm gonna hover over this tab up top right click on it Duplicate that's tab. So now we got the balance sheet on the right We're gonna go back to the left to open up the PNL. We're gonna have the hamburger open We'll go into the reports on the bottom Then we're gonna be opening up the profit and loss reports the PNL Otherwise known as the income statement. So we'll open up the income statement. I'll change the dates up top once again So we'll make this for oh one oh one two zero to twelve 31 to zero gonna go ahead and run this report. I'm gonna close the hamburger gonna hold down control scroll up just a bit Oh hold on a second that wasn't control I held down That was that other button with the four squares on it or something. So here we got that we're at the 125 now I accidentally opened the profit and loss by class. So let's open both of them I'm gonna right click on the tab up top again. I'm gonna duplicate to this tab We're gonna need that profit and loss by class. I won't get rid of it I'll go back to the prior tab open up the hamburger and Then go back down to the reports Now the profit and loss by class I put into the favorites. You'll remember last time I put it into the favorites by hitting this little star. So that little star put it up into the favorites It's actually gonna be down here in And in the what do they call it the business overview? So in the business overview you have the profit and loss by class profit and loss by class You probably want to put a little star by it because it is one of those items that you will use all the time And therefore it'll show up once you do so up top here Then the standard profit loss we can open up as well. So I'll open up the profit and loss So we got the profit and loss by class. We got the profit and loss Changing the dates up top and the profit and loss. I'm gonna say oh one oh one two zero two twelve thirty one two zero We'll run that report Close up the old hamburger and so there we have our contributions now note I labeled it as unrestricted here and we'll also see it unrestricted in terms of the classes Then we have the rent and then that's gonna be our net income the net income then showing up on the balance sheet If we go on over to the balance sheet in the equity section, there's the income that's in equity so far So closing up the hamburger here going back to the profit and loss. Let's take a look at the P and L by class now Profit and loss by class. You'll see that we have the un the unrestricted at the 35 8 And then I put the other amount into the fundraising. So maybe I should put This 35 8 into the into the fundraising as well And so let's do that and I'll show you how how we can make this adjustment fairly easily So we can adjust which classes they're in fairly easily by running this report then drilling backwards on it drilling back down to the actual Data input form. So we're gonna go into this 35,800 and I want to change the class of it So I'm gonna then click on the transaction that takes us back to the sales receipts Which is basically the donation form and then we're going to be changing this I want to change the class To the under the unrestricted, but fundraising so I want to go unrestricted fundraising and then I'm gonna save that item then we'll close this back out and scrolling back up go back to our Report summary so then back to the report summary. So now we have and if I go back up and Run the report again So there we have it So now we have the fundraising and we have the total unrestricted because that's a subcategory of the unrestricted and then we have the not Specified and the not specified we have the rent and lease because we're gonna we're gonna need to break that out We're gonna need to break that information out By percentage how we're gonna allocate those out and we'll do that basically at the end of the month in a similar fashion As we just did to reallocate this class up top Okay, so now the the next report that we've been we've been running I'm gonna go back to the first tab and I'm just gonna open up another report open up the hamburger here We're gonna go back down to the reports And the other report that we've been will often want to have it's gonna be that Sales by customer report which and notice the sales by customer. They're actually donations But I'm gonna go down. We're gonna use the terminology within quick book who owes you money. No, we're going into the sales and now we want the sales sales by Class we want sales by customer this time. Let's take a look at the details sales by customer detail Again, this is an important report so that we can provide this information to to the donors So we're gonna say that this is gonna be 010120 to 123120 run that report and Now we can see, you know donor one and donor two. There's our sales Contributions by donor that ignore this last component here. This shouldn't this is this is another component I was testing out on here So donor one donor two there's gonna be the activity the total of this report obviously 225500 adding up to the P&L the profit and loss here the 225 500 so if we go back to the to the classes that looks good you can also see similar information if someone had a particular question by going to the Hamburger, let's open the hamburger back up if you go to the sales item here Then you think of your donors in essence as customers with relation to quick books online So we would then go to the customer items I would then close up the hamburger so we have a little bit more room and then we can go into our information by customer So if we if we then go into our information by customer, we'll see the transactions there Here's the sales receipt transaction. You can then obviously go into the sales receipt You can print out that sales receipts as needed from this location as well So I'm gonna close that back out now I'm also gonna be printing out the trial balance so you guys can check your numbers as we go So just note that the other report that is is worthwhile to note Even though you might be using the financial statements most of the time and not the trial balance all the time is it if you Go to the reports down below and we open up the trial balance I typically just type it in there because they put it way down at the bottom and like the accounting area So I'll just type in trial balance And I'll close up the hamburger and I'm gonna run this for 2020 so I'm gonna say oh one oh one two zero two twelve thirty one two zero Run that report so we'll run that and there's our trial balance now This one's just a little bit easier for us To see because there's not any subtotals that has both the balance sheet accounts and the income statement account So all we have right now is the undeposited funds the the contributions Unrestricted and the rent and lease at this point. So let's stop it here next time We're gonna be taking this information out of the unrestricted and making the deposit it for it moving it on up to the clearing Or into the checking account will actually add a checking account as we do that as well So that's gonna be it for now. Let's get out of here