 Welcome everyone to QuickBooks Online for Newer Nonprofit Users. Thanks so much for joining us for today's TechSoup webinar. We're glad to have you on with us. Before we get started, I want to make sure everyone is comfortable using ReadyTalk. You can use the box on the lower left-hand side of your screen to chat with us. Let us know if you have questions or if you need any help with the audio or visuals throughout the webinar. We'll be on hand to help flag your questions and assist you in any way we can. Most of you are going to be hearing the audio play through your computer speakers. If you're hearing an echo, you may be logged in more than once and will need to close additional instances of ReadyTalk. If at any time the slides and the audio fall out of sync, we recommend dialing in to the toll-free number that Susan has chatted out into the chat window for your use. If at any time the audio is hiccups-y or goes in and out, feel free to just dial into that line. You can use it with phone or Skype and it is a toll-free number. We will keep all lines muted today to get a nice clear recording so you can review it again later or share it with your friends and coworkers. If you lose your Internet connection, go ahead and reconnect using the link emailed to you in the confirmation or reminder email that you would have received. Many of you would have gotten an email an hour ago and that had the slide deck available to download on the right side of that email. If you just registered, your confirmation email should have also had that slide deck just this morning. You can reach out to ReadyTalk as well if you need any assistance. Keep in mind we are recording today's event so if you miss anything you will be able to find it on our website at techsoup.org slash community slash events dash webinars. That's also where you'll find a list of our upcoming webinars as well as our archives of all of our past webinars. You can also check our TechSoup video channel on YouTube to find the recording there. And within a few days you will receive an email that has the full recording for you to review at your leisure and any links and materials that we discussed today. You can feel free to tweet us at TechSoup or using the hashtag TSwebinars. Again my name is Becky Wiegand and I'm the webinar program manager here at TechSoup and I'm happy to be your host for today's event. We are joined today by a prominent expert in QuickBooks nationwide, Greg S. Boston, CPA. He's also an Advanced Certified QuickBooks Pro Advisor with a full service accounting firm in Atlanta, Georgia. He's the founder and CEO of QuickBooks Made Easy, one of TechSoup's donor partners. And since 2000 he's been teaching live QuickBooks seminars around the country designed for nonprofits. So we're really happy to have him joining us. You'll see on the back end a whole bunch of people who will be on hand to help. David Webb from QuickBooks Made Easy. And we have Hector Garcia and Deborah Kilschimer both who are QuickBooks Pro Advisors and part of the Intuit Trainer Writer Network. So they are experts on hand to help answer questions throughout the webinar. You'll also see Allison Bliss and Susan Hope Bard from TechSoup. And we'll be here to help you with any questions about our donation programs. Quick look at our objectives for today. There's a lot that we're hoping to cover. It's more of an agenda than learning objectives, but we have a quick overview of what QuickBooks Online choices are available, what you want to be using, which QuickBooks product is best for your organization. We'll have Greg show us how to get around some basic introduction to the navigation within QuickBooks Online. And then he'll go over some somewhat universal tips on how to properly set up your chart of accounts. So this may apply whether you're in QuickBooks Online or if you're using the desktop version, some of this may be the same principles even though it may look very different than the desktop version. We'll also cover where and how to track your programs, where and how to enter donors, members or students, how to enter budgets, getting a budget to actual report easily, and the best way to enter your income and he'll show two methods. And then we'll have time for questions no matter how advanced. Keep in mind though that this webinar is geared toward newer nonprofit users if you're joining us from a library or a church. Some scenarios may be different. If you've been using QuickBooks for 25 years you may find that some of this is review for you, but you're welcome to stay on anyway. If you are using the desktop edition we'll chat out the link to the webinar that we just ran two days ago with Greg for QuickBooks for newer nonprofit desktop users. So before we get started a little bit about TechSoup we are everywhere in the world on this map that's blue which is pretty much everywhere except for a couple embargoed countries where we're not able to operate. If you're joining us from outside the United States we recommend that you visit TechSoup.global and find your country on the list. The donation programs that we talk about today are specifically related to the US-based program. So if you're joining us from elsewhere those donations may not be available to you but they may so you should definitely check out on this site. Go ahead and chat in to let us know from where you're joining today. So we have an idea of where around the world, where around the US all of our participants are from. And we have around almost 400 people logged in right now. It's going to be a busy event and we may not get to every question. Most likely we won't with the volume of people we have but we will do our best on the back end to answer questions throughout the webinar. TechSoup has been around since 1987 and we've been delivering donated products like Intuit products in Adobe and Microsoft and many other donor partner products as well as helping to facilitate grants and other in-kind donations to the do-gooder sector around the world to the tune of $5.4 billion. So I'm proud to be part of that. And before we get started with Greg I just want to mention at the front end I'll also talk about this at the back end. If you are needing a donation of QuickBooks Intuit is the donor partner that creates QuickBooks. They are our partner here and you can find more about their program at TechSoup.org. You'll see a number of options available to you. Right now we have the 2016 version of QuickBooks Premier One User, QuickBooks Premier Three User License, QuickBooks for Mac, and QuickBooks Online Subscription. So if you're looking to embark upon a purchase of QuickBooks you can receive these donated versions through TechSoup. You can also see about the eligibility. I won't go over all of that since you can read the screen yourself. And so with that I'd like to go ahead and have Greg Boston join us on the line to talk a little bit about what he does and take us into this program. What does QuickBooks made easy do? And how can people use QuickBooks Online better for their nonprofit? Thanks for joining us Greg. Greg Boston Thank you. Becky, I'm just always amazed at how smooth you sound like a lot better than I do. You have such a smooth-sounding voice. Becky Wilson You're funny Greg. You're great at this. What are you talking about? Greg Boston Oh, well I appreciate that. And thank you for – By the way, everybody say hi. I want to make sure you're there. I'm very insecure. I like to know everybody's listening to me. So chat, hi, hi, hi, hi, hi Greg. I want to see that. And somebody's from Cambodia. Somebody is on the line from Cambodia. James is. I think it's really impressive. So I think that's really cool. Okay, great. Oh, they're even saying my name, hi Greg. Jim, it's spelled with 2 G's on the end. My mother didn't like the name Gregory so she stuck an extra G on the end. So minus 4 G. Becky Wilson We should mention we know that you can't see each other's chat messages and questions coming in. We will be on hand on the back end trying to respond to those. And if there's something useful that you know about QuickBooks that you want to share back out, we can chat that back out to our audience for you. So just know we are seeing your messages either way. Greg Boston Cool. All right, great. Thank you. I feel better now. And I was just kidding. I mean I really do have 2 G's on the name, but it's okay if you used G-R-E-G. That's fine. So again, I'm a CTA with an accounting practice in Atlanta, Georgia. I've been in practice for probably 25 years. I specialize in nonprofit organizations. We do audits of around 25 nonprofits a year. We do about 100 or so 990s I would say at this point. And we have about 500 more nonprofit clients around the country that we have technical support agreements where you can call up and ask us questions and stuff like that. So that's kind of one part of my business is I have the accounting firm and then I own QuickBooks Made Easy. And QuickBooks Made Easy is all about teaching you how to use QuickBooks. And we specialize in a couple of different industries. One of them is nonprofits, which is why I've been partnered with TechSoup for so long. And then the other one is construction contractors. But we're all here talking about nonprofits. And so we teach you guys how to use QuickBooks Better for your nonprofit. And how do we do that? We have three ways of doing it. We have training DVDs that come with handbooks. One of them is actually on the TechSoup website. This is a little picture of it here. QuickBooks Made Easy the Essentials. And we have one just for online users that you can purchase through TechSoup. Additionally, we have TechSupport. And finally, we have live seminars across the country and we also have webinars. And I thought I would just show you real quick where we're going to be since you guys are all over the place. Here's some of our upcoming live seminars. They're all-day seminars. One in particular since you guys are online and you like doing online stuff, I would imagine. What you're going to be seeing today is kind of a mini version of a three-day webinar. It's two hours a day. For three days it's happening August 16th, 17th, and 18th. So you're going to be on this call for an hour and a half. See if you really want to listen to me for that long. And if you do and you like me, then we're going to give you a pretty big discount. We're going to give you a little coupon so you can sign up for this online seminar. I think it's $1.99 normally. We're going to let you sign up for $149. We're going to give you the little coupon. As a matter of fact, I think it might be, yeah, I think it's in the next slide here, but I'll pop these codes up. Whoops, I'll pop these codes up again. Hold on, let me, there we go. Yeah, so this is a three-day webinar. There's the code. And there's the tech support for years worth of tech support. And I'll talk about that in a minute. But right now I want to hear from you guys. So I'm going to kind of lay of the land here. I'm going to pop through this. This slide here I should mention, it just kind of explains to you what QuickBooks is for. It's an accounting package, but it also can be a light donor database actually. It's not bad. You can get donor reports in year-end donor letters. It's kind of neat. And we'll show that at the end of this webinar. All right, here's my poll. So how new are you to QuickBooks? Some of you have never used QuickBooks before, so go ahead and start answering. No one's answering yet. There we go. So never used QuickBooks before at all. Some people know QuickBooks desktop, but not online. You're new to online. I'm sure there's a number of you in that boat. Then there's people that know online, but not that well. Then there's I know QB Online well, but not for nonprofits. You know, you might know the Online Edition well, but not for nonprofits. Then I just have some questions. I'm a QuickBooks master, and then I'm hunting Pokemon, which we have three people doing that. And I'm sure that David Webb who works for us is one of those three people actually. I don't know, David, are you on the line? I am, and I do not. Oh, okay. All right. Isn't that weird that that's happening in the world? But anyway, we have a lot of people chatting in that they've been using it just for a few months. So lots of comments coming in, and we are reading those. Yeah, yeah. So go ahead and everybody answer real quick. We'll leave the poll up just another second. We've got another 100 or so people that for whatever reason aren't answering the poll. How could you possibly not want to listen to me? I don't understand. So perhaps there are more people hunting Pokemon than we realize. Maybe so. All right. Well, I'm going to go ahead and skip the results. Yeah, we can see what we're looking at here. So look at how many people are new to just the online edition. So the second one there, 35%, 34.7, no QuickBooks desktop, but are new to online. Now a quarter of the people on the call have never used QuickBooks before. So you just started to use QuickBooks, and lo and behold you have this online edition. You want to learn how to use it. So you might be at an advantage actually. The people that are used to using the desktop version of QuickBooks, we get really freaked out when we see the online edition. But anyway, so enough of that. So there's one more poll I'm going to do too just for the heck of it. This is a completely irrelevant poll. I kind of did this for us. So you're on a road trip and you're hungry. Where would you eat? We got Arby's Burger King, Chick-fil-A, Hardee's, In-N-Out Burger, McDonald's, Taco Bell, Waffle House, Wendy's, and White Castle. Somebody added that. I didn't put that on there. I do like White Castle. That was me. I hail from Michigan where White Castle exists, and I live in the White Castle Free Zone of California. And I kind of miss it. Yeah. All right, we won't do this too long. I'll go ahead and skip to the results. You can keep answering because we've got to get into QuickBooks. Hey, Chick-fil-A is very popular. Well, we've got healthy people here. I taught that. I had one kind of healthy thing, and apparently that's the one. Yeah, that's interesting. We should have none of the above too because there are a lot of folks that don't eat fast food. And you are correct. We absolutely should. Even those of us that don't eat fast food, when we're on a road trip, we usually end up going, you know, I just can't help myself. I'm sorry. All right, so this is the objective, which of course we already went over. First thing I want to cover this, so here we are. We're starting. So what QuickBooks Online Choices are available? So actually, I'm going to go ahead and click to the slide here. There we go. There are actually four choices of QuickBooks Online Edition. If you have the Online Edition, you have four choices. Self-employed, Simple Start, Essentials, and Plus. Which one is right for you? That's really easy. It's Plus. The reason why is because Plus has budgets and program tracking. None of the others have the ability to enter a budget, and none of the others have the ability to track programs. And so basically, it's a no-brainer. You must have Plus. Now fortunately, that is the option that you can get from TechSoup at $50 a year. All right, so that was pretty simple. And I think we can move on to the Online Edition itself. So I'm going to go ahead and share my screen and make sure that you can see this. So if you have any difficulty viewing, you can also click Full Screen to view a little bit closer up. And if you need to get out of that to get back to the Chat view, you can just hit Escape. So what we're looking at is we are looking at the Online Edition. So I'm going to address a question that I know some of you already have, which is, if you already have the Online Edition and you're paying $20, $30, I think the retail is $39 a month, then you might be thinking to yourself, wait a second, I can get it for $50 a year. How do you do that? Well you go to the TechSoup website. And I will tell you that what you really need to do in order to switch this over so you're only paying $50 a year is to basically close the old account that you set up and create a new account through the TechSoup website. When you close the old account, you'll have to take your online account, your online data file like all the transactions and everything. You'll have to download it onto a desktop version of QuickBooks, and then you'll have to upload it into the new account. So I'm just going to go up here this little gear for those of you that are wondering. And when you're in your online account and you've decided I'm going to switch to a new online account through TechSoup, I'm going to go here to the gear, I'm going to click Export Data, and it actually creates a data file that can be read in the desktop. Put it onto a desktop version of the program. You may have to get it from – we can help you with it at QuickBooks, maybe easy. We can load it onto our desktop. And then we upload it, then you will give it to you and you can upload it back to your new account that you get through TechSoup. So that's kind of how that works. So I'm going to move into the navigation. I think I'm going to go ahead and talk about navigation. We're going to have time at the end to do questions, and then we've got Hector and Debbie and David answering questions as we go. But I'm going to do some live questions as we go through also just to kind of keep it interesting so you're not just listening to me babble for an hour and a half. So here we are. So the first thing I need you to understand is that QuickBooks Online Edition is a cloud-based version of the software, which means that we didn't even – I should probably show you this. I'm going to go ahead and sign out. So it means that after you've created an account you go to a website to sign in. You type QBO.intuit.com. It takes you to a site. You put your user ID and your password, and you click Sign In, and it signs you in to your file. Now if you only have one file, then it signs it in. It signs you into that one account or that one company file. I have a bunch of different ones here. So it's asking me which one do I want to open. And I will stop now and tell you that $50 a year that you pay TechSoup, that gets you one account, one file. It gets you one company file, one organization. If you run two nonprofits, maybe a 501c3 and a membership organization that's a 501c6 also and you need two different accounts, you'll be paying $50 a year for the first one. The second one you'll need to pay the regular amount, that free thing only works for one account, or that $50 a year only works for one account. So I'm going to go ahead and click on the first data file that we're going to be using here, and it's going to open up the home page. So here we are. So this is the home page, and I just want to give you guys that are new, kind of the quick and dirty of how to get around. So I'm not going to describe everything that's on the screen. I'm going to describe the things that are most important. The thing about the online edition, and in case you're wondering, there is no nonprofit version of the online edition. There's simply those four choices, and the one that you want is the plus version. And that's the one that you, that's the most expensive one normally, but the one you get for $50 a year at TechSoup. But anyway, so here we are. And what you'll see is the vast majority of what's on your screen, what's covering most of the screen are these charts. And these charts are actually not very relevant for nonprofit organizations because remember, there's not like a special QuickBooks online for nonprofits, there isn't. So like if you happen to do a lot of invoicing, maybe your membership association, this chart that tells you what's overdue and stuff might be helpful. This next chart in the middle, Expenses, kind of gives you a pie chart of where your expenses are coming from. That's kind of cool. This is a little P&L chart. But there's not really much you can do with these charts other than changing the date range. And they're not really that important for nonprofits anyway. So what I will tell you is that there are three places that are the most important to go to when you're on the home page. Now, I need to say something first. So listen very carefully to me. Listen now. Anytime you are in the land of QuickBooks and you're entering something, the thing that you're entering is in one of two categories. Either it's something that goes into one of the lists that QuickBooks has, like a new customer you're putting in the customer list or a new expense account you're putting in the chart of accounts list. If it's not one of those things that you're entering, it's a transaction. That's the other category of stuff. And that would be a check or a bill or a deposit. So the two things that you usually enter when you're in QuickBooks are things you're adding to a list or transactions. Now the reason why you came to this webinar is because you want to learn QuickBooks so that you can get good reports out of the software for your board of directors. Now in order to do that, not only do you need to really know how to enter the transactions which is actually fairly easy, the main reason why people don't get good reports out of the software is because they didn't set the lists up correctly to begin with. So we're going to talk about the setup quite a bit during this webinar. We're going to do a little bit on transactions. But the reason why I brought this up now is because if you want to set your lists up, mainly you go to this little gear thing here. That's one place. Remember I told you there was three places on the screen that are important. This is one of them. If I click on the gear, you see where it says chart of accounts? That's one of the lists. So that's where you would go to set up your chart of accounts list. So this is where you go to set things up and set your lists up in particular here. The next is if you're not doing that, the other category was transactions. So you are adding a transaction, adding. So you see this little plus sign right here? That's where you go to enter transactions. So if I click on this, you'll see here's where, for instance, I can enter a check. I'll just go ahead and pop on a check and here's a little pretty picture of a check and then you fill it out. You can print it. You can save it. What have you? So this little gear right here, that's where you go to set things up. Plus that's where you go to enter transactions. The third place that you'll be going to mostly is getting to the reports. And the reports are over here in this little area here that says reports. Pretty simple. So I think I'm going to go ahead and click on reports and just talk about this. This confuses people when they first see it. Because your eyes immediately go down here and you start looking for, oh I guess these are the only reports I have. That's not really true. I'm going to go ahead and click this arrow that goes back. It says all reports. So now I'm looking at all of my reports. And actually, you see these little five areas here. We have recommended, frequently run, My Custom Management at all reports. If you click all reports, you'll be able to find every single report that's in here. Frequently run, those are reports that you go to so often that they go ahead and that's something that QuickBooks memorizes and puts on there. My Custom Reports, these are going to be your memorized reports. And I'll mention that if we can. And then recommended reports, I think these are probably just reports that a lot of people use like a P&L. But I'm going to go to all reports because I like to get an overall of everything. And then they're organized in these different areas here, business overview, accounts receivable, accounts payable, account reports. So if I click on business overview, then this is where I would see the profit and loss and the balance sheet. And that's all accounting really is if you don't know very much about accounting. All it is is entering transactions so that you can look at these two reports. So there's one more thing that I want to talk about when it comes to navigating around in the online edition. And it has to do, this is really kind of important, so listen very carefully as if you haven't already been, hopefully you haven't. It has to do with being able to see more than one thing at the same time. You see, in the online edition, anytime you are in a window, you're actually on a web page. So in other words, right now I'm on this web page right up here. If you look at the top of the screen, HTTPS, QBO.2.com, backslash, app, or forward slash and then forward slash reports. If I go to a different window, say I click on home, do you see how the web page changes? So these are different web pages. So let's say I want to see two reports at the same time. I'm going to click on reports. If I click on, I'll click on balance sheet. It pulls up a balance sheet. Well if I want to see a P&L, if I just went over to reports and I clicked P&L, the balance sheet would go away. Now I can get back to it by using the back arrow and it takes me to my previous screens that I was in, my previous web pages. But if I want to see them both at the same time, each one of these is a web page. So Becky, I'm going to ask them, how do you think you would see both two reports at the same time if I wanted to? How would I do that? What would I do? Because if I click on the other one, the first one goes away. So what do I do? Somebody chat up the answer. Becky, I'm waiting for the chat to open. It says open two pages. There you go. That's good. Open two pages. In other words, you open up a second instance of the online edition. Now I forgot to say this before, but the browser that you want to use when you are in the online edition is Google Chrome. It's much easier than the other two and it's the one that Intuit recommends, or the other two. Windows are in America, or Firefox, thank you. But anyway, Google Chrome is the way to go. So how am I going to open up another instance? Well, I could go over here to a new tab and type it, and this really isn't even a QuickBooks thing. But in Google Chrome, I can simply, I'll just exit this back out, if I right click on the tab and I click Duplicate, not only will it open up a new tab, but it goes to the same web address. So see, now I've got this balance sheet here, this tab. But if I go over here, it basically is a different page, but it's at the same place. So what I'll do is I'll go back over here and then I'll change this one to the PNL. And I'm going to make a change to the PNL because there's no data in here. I'm going to make this July 1 of 2019 to, and then I'll go June 30 of 2020. And then I'm going to click Run Report and it changes it. So now I've got the PNL over here and the balance sheet over here. Now this is what's really neat about Chrome. All of the browsers do this, but I like the way Chrome does it. I can just click on this and if I drag it down, do you see how it becomes its own page now? Isn't that kind of neat? So I'll just kind of move this over here. It's all big. Let me click on these arrows to make it small. Then I'll click on this one and then I'm going to click on the little boxes here to make it to where I can move it. I'll move it over to the other side. So see now, how cool is this? So now we've got two windows open at the same time. And I actually opened up these two windows for a reason because the next thing we're going to talk about is the Charter of Accounts. But I'm going to stop now and see if anybody has any questions about what we've covered so far. So Becky, I know a lot of you do, but go ahead and read out some of the questions and let me talk for a couple seconds to people. Becky Sure. Well, based on the tab opening that you just did, we had some people asking whether that worked the same in the installed QuickBooks as well and if they could open additional tabs of QuickBooks. John In the desktop version, are they saying? In the desktop version, you don't really have to worry about that at all. And I should have opened up the desktop. But if you go under the View menu, you'll see something that says multiple windows in the desktop. And if you push it, you'll be able to open up multiple windows at the same time. It's not like you have to reopen QuickBooks. You just open up a second window. Next question. Becky Great. And related to that, do you know what the shortcut is to do that on a Mac since you right-click on a PC to open up the options for a new tab? Do you know what the shortcut would be for a Mac? John I think it would be, David, do you know what the shortcut is for the Mac? If somebody knows, you can chat and then we'll tell everybody. I don't know. It is the command thing I would imagine. David Control-click or command-click? John Control-click or command-click. Is that what you said? Becky Yeah, usually command is going to be your equivalent to control in a Mac. We have Sandy clarifying that she's not asking about the desktop version. She's asking about the app for the online version. So if you're using a mobile app of it, I guess, on a tablet or something, is there a way to open up additional tabs that you're available? John Oh, that's interesting. I don't know the answer to that question. I think that she might be referencing the app that you could install on a Mac to get to the online version, because I know that that's available. I'm not sure if PCs have it available. And it basically acts as a web browser. So it would really depend on the functionality of it. I've only used it a few times. So why don't we write down, like, get her contact information so we can get her a better answer that's just for her? All right, so I'm going to move on if it's okay, because I want to have a lot of time for questions at the end. We've got some good people on the call other than me can answer questions, so I think that might be kind of cool. So what I'm looking at right now is a balance sheet and a P&L. And I'm looking at these two for a reason. And I said this before. I'm going to say it again, especially for those of you that are relatively new to QuickBooks or new to nonprofits. The whole purpose of accounting is to create these two reports, this balance sheet and this P&L. And the P&L, you would like to have it compared to a budget, and we're going to talk about that. And you give this to the board. So the balance sheet and then the P&L compared to budget, that's what you give to your board of directors at the end of the month. Now there are other reports you can create, but this is the main point of accounting is to create these two reports. And these individual lines that are on, oh, I just zoomed in for a second. I didn't mean to do that. Hold on. I did it again. There we go. I know your screen is probably freaking out, so I'll give it a second here. All right, these individual lines, checking, savings, memberships, and then over here on the P&L corporate foundation government grants. These are the lines that are in your chart of accounts list. So the backbone of your entire accounting system, and when you first start using QuickBooks, you want to set up your chart of accounts properly because the accounts in this list, they are the accounts that create these two financial statements. And as a matter of fact, I think what I'll do is open up the chart of accounts list so that you can see what I'm talking about. I'm going to create a new, I'm going to go to open up another tab here. And on this one, I'm going to go to the chart of accounts list. So the chart of accounts list, it's a list. So where do you think it would be? You think it would be in the plus sign, or do you think it would be in the gear? Where is it? Somebody tell me. I know I'm doing basic stuff here, guys, but a lot of you hadn't used it before and I'm testing you. Sure, I've got people saying the gear. The gear because it's a setup thing. So I'm going to go to – Lots of smart folks know it. And then I'm going to go over here to chart of accounts. So I'm going to click it and it's going to open up the chart of accounts. So you see here how we have checking, savings, memberships receivable. That gets in the chart of accounts. Checking, savings, memberships receivable. These accounts are broken up into different types. Let me make this a little bit wider so you can see it. These are the different types. And we'll talk about the types in a second, but I'm going to tell you right now that all of the types that are equating above, they determine what your balance sheet looks like. And then all of the types that are below equity, and let me move this, that determines, boy, that really worked nicely, didn't it? Sorry, I've never done that live before. That kind of worked neat. All right, so all the things that are below equity, they appear on the P&L. So if I'm looking here, it says corporate grants, foundation grants, and government grants. It's there because it's up here, corporate, foundation, and government grants. So obviously the chart of accounts is a really important list. It's like the most important list in all of QuickBooks. And so the first thing you want to do is you want to make sure that you set this thing up correctly. So I want to do two things. One, I want to talk to you about how to add an account, how to edit an account, how to get rid of an account, because you may decide that you want to do that after this webinar. And then the other thing is I want to describe to you what your chart of accounts should look like considering that you're a nonprofit. So in order to create an account, we're going to do that first. You see the little button here at the upper right that says New, this is pretty basic. You click it, and you click New. Now the first thing it wants to know, remember I told you accounts are broken up into different types. It wants to know what type the account is going to be. And the type is really important because it determines where it appears on the financials. If I pick bank accounts, bank accounts, they appear on the balance sheet. So they'll appear over here on the balance sheet. Whereas if I pick, we'll scroll down here a little bit, if I pick income, they don't appear on the balance sheet. Income accounts appear on the P&L over here. So if you don't know what the type should be when you're creating an account, talk to the person who does your 990. I promise you that person will know. These account types are second nature to us geeked out accounts and bookkeepers. So I'm going to create an account for computer equipment. Somebody chat what type that should be. What type should computer equipment be? I'm waiting. Yep, I'm waiting for the responses to come in. It's computer equipment. Big piece of computer equipment. Some people are saying fixed asset. Other people are saying expense. Right. So I will tell you, and I don't want to go too far down the rabbit hole, when it comes to equipment, you would think if you're buying something it costs you money, that's an expense. So a lot of people go, oh, it's an expense. And they'll create an account called computer equipment making an expense. Here's the thing. The accounting gods have decided that if you buy something that's valuable, it costs a good amount of money, and it's going to benefit you more than a year, they don't want you to expense it. They want you to what's called capitalize it. Put it on the balance sheet as a fixed asset, and then expense it over time by recording this weird entry called depreciation. So if it's $100,000 and it benefits you for 10 years, you expense $10,000 a year. Because you're really just exchanging one asset cash for another asset, computer equipment. Think about it. If I asked if it was a building, if you bought a building for $1 million, if you expensed it, it would make you look like you lost a lot of money and that you would look weird. So same thing with computer equipment. Now I know you're already asking, what's big enough? If it's more than $500,000 should I put it as a fixed asset? It depends upon the size of your organization. There's no wrong answers here. You get with your board, you vote on it. Just give your rule of thumb. If your budget is a couple hundred thousand, maybe you decide $500. If your budget is $5 million, maybe you decide anything over $3,000 you're going to capitalize. It's just up to you. You vote on it. I'm going to go ahead and say this is big enough. I'm going to make it a fixed asset. So that's how you create an account, fixed asset. Now those of you that are used to desktop, when you go to the online, you're going to see this other thing called detail type. And it's going to freak you out because you're like, well what detail type? Now what it does, I will tell you two things. When you click detail type, so say this is equipment. I'll put machinery and equipment. I want you to keep your eyes over here in the name. This is the name of the account right over here. When I click machinery and equipment, it assumes that's what you want the name of the account to be. So one of the things this detail type does is it kind of helps you name it. But if I don't want to call it machinery and equipment, I don't have to. I can just change it to computer equipment. So to be honest with you, there was another point to have this detail type, but they haven't really used it into it. So honestly what you pick for this detail type is kind of irrelevant, so don't sweat it. Don't worry about it. So that's the detail type. Here's where you name it. And then you click save and close, and that's how you add it. And now you'll see, here's computer equipment right there on the chart of accounts list. And then you can start using it when you're entering transactions. I'll click the little plus sign because let's say I want to do a check. I'm not really going to do transactions, but I just want to show you. See where it says account? I can type computer, I can spell it right, computer equipment, and then now I can start using it. So that's kind of how that works, the whole thing with adding an account. I'm going to go ahead and leave without saving. All right, so now you may decide that you don't like an account, that maybe you don't use an account, you want to get rid of it. Here's an account that doesn't look like I've ever used it. So maybe I don't like the name of it. If I click on that, computer, another hardware, I can edit it, and this allows me to change the name of it. I want to do that. And then I'll click save. And when I edit the name of the account, it changes it for future transactions, but it also changes it on past transactions as well. So now there it is right there, computer and hardware. If I'm never going to use it, or after this webinar, I'm like, you know what, I don't want to use this anymore, I've been doing this wrong, then you can click delete, and it will remove it. Now when you remove it, it's not gone altogether. It's hidden, okay? You can still see it if it's ever been used on previous transactions. You just can't pick it going forward, okay? So that's kind of the way that it works. So I want to spend the rest of the time talking about what your chart of account should look like. But yeah, so I think I'm going to go ahead and do that now. Actually, you know what? I'm going to say one more thing. Did you notice that my accounts don't have numbers? In QuickBooks, both the desktop and the online edition, if you want, you can have account numbers associated with your chart of accounts list. Instead of it being called just the checking account, we can also identify it by a number, account 1200 or whatever. Now why would you do this? Well, some people think it makes key punching easier because you can type a number in in addition to a name, but I don't really think that that's that important. So I turned the feature off. So let me show you where you go to turn account numbers on and account numbers off. So this is a setup thing. So we're going to go to this little gear right here, and I'm going to go to account and settings. And those of you that are used to using the desktop, you're familiar with this thing called preferences. It's little features you can turn on and off. This is the online editions version of preferences. You go to account and settings, little features you can turn on or off. There's so many of them that they break them into different categories. On the left-hand side of the screen, we're looking at the company category. If I click on advanced, you will see under chart of accounts enable account numbers. If you click it and check enable account numbers and show account numbers, then you'll have account numbers. So I'm going to go ahead and click save. And then I'm going to go back to my chart of accounts list. And I need to refresh the window and when I do that, you'll see that the account numbers are here. Now like I said, when you have the account numbers, it benefits you because I mean I don't care about it, I don't use it. But you see this account number, Office Equipment, it's 1720. When I go to enter a check, I can either type the name Office Equipment and it pops up or I can type the number 1720 and it pops up. So that's what's kind of cool about it. Now I don't really like account numbers. I don't use them that much and so I made them go away. There's one other reason that is just for those of you with the online edition why you might want to use account numbers. So listen very, very carefully. It has to do with the order that things appear in. So let me show you what I mean. I'm going to go back over to the ballot sheet. Let me just do this little layer out here. All right, those of you that are accountants may notice this or people that are bookkeepers. Do you see how in the fixed asset section accumulated depreciation is the first one and then we have furniture and then we have Office Equipment. This is when there's no account numbers. When there's no account numbers, how is this organized? Somebody chat me up. Can you see how it's organized? I'm just kind of saying this to make sure you're still with me. It's kind of obvious. Anybody chat back? How is this organized? We're getting responses alphabetically. Which isn't that annoying if you're a bookkeeper because it means the accumulated depreciation account, that's the amount that's been depreciated, always shows first. We don't like negatives first. If you're an anal retina person like me this is really upsetting. Now in the desktop version, when you're in the chart of accounts list it's very easy to change the order in the desktop version and whatever order it's in here is the order that it appears on reports. So in the desktop version you just quickly move things up and down by clicking and dragging and then it changes the order here. In the online edition which is what we're looking at you cannot do that. Your only choice is either alphabetical order or numerical order. So that's why some people like account numbers here because then it allows them to change the order. Do you see how what I did was I made furniture 1710, Office Equipment 1720, and I made accumulated depreciation 1730. And as a result of that, when I refresh this report accumulated depreciation will be on the bottom. So now that I've said that let me show you. So I'm going to go ahead and refresh the report now that I've turned on the account numbers. And it's going to change the order and it's going to make it kind of be in order by number which means this will be at the bottom. Now if this annoys you that the account number is appearing on the report, I'm going to tell you to go ahead and just take a Xanax because there's nothing you can do about that. So you kind of have to choose. Either I get the order that I want or but have to have these account numbers or I don't have account numbers showing but then it's alphabetical. So that was it. I'm going to almost feel like I want to stop here, take a couple of questions, and then we'll spend a few minutes on what your chart of account should look like. So let me just stop because I've talked for a while. Who has a question for me? We'll just take like two quick questions. Becky Sure. We had, you know, when you were talking about the fixed asset thing a while back versus expenses, some folks were chatting in asking about, well, if you're a small business, if it's an expense less than $100,000, or some people were saying less than $5,000 and that the board would decide that you could have it appear as an expense rather than a fixed asset. Is there a reason to do it as a fixed asset? Is it under a certain amount of money? John Okay. So what I said was that you decide as a board what you're going to capitalize as a fixed asset versus expense and then that's what you do when you point the assets that are over a certain amount of money to the fixed asset account. And then you expense them over time so that your P&L doesn't get skewed for the month that you bought a building or something huge. So I think what the person might be wondering is there a reason to ignore what I'm saying and go ahead and put small things to expense? Well, I already told you, if it's less than something that you pick a number, $500, if it's less than that, go ahead and expense it. But I'll throw this in. Some boards, they don't know anything about numbers. And when they look at a P&L, if they want to see all the expenses, all the checks written on that P&L, even if it's for a fixed asset, they want to see it on their P&L. And if that's the case, what I do, I think, hold on, let me go back over here. Yeah, they want to see all of it. So what some people do is even though this is wrong according to the accounting gods, they create an expense account called fixed asset purchases. And then they point everything to it, whether it's large or small, so that the board won't freak out. They'll see all the purchases on the P&L compared to budget. Just know that at the end of the year, when the accountant comes, they're going to back that off the P&L and put it on the balance sheet with an entry. So I think I'm not going to take another question because I'm talking out of time here and I want to move on. I want to spend some time talking about what your chart of account should look like if you are a nonprofit. Now I'm going to break this up into three sort of areas, balance sheet accounts, income accounts, and expense accounts. Now the balance sheet accounts if you're a nonprofit are pretty much the same as they are for regular businesses. You'll notice here we have a checking and a savings account here. Even if you didn't know anything about accounting, you probably figured that you had to have a separate account for each one of your banks. Then we've got a receivable account. Only if you invoice customers, like if you're a membership association, you invoice for memberships, or maybe you're lucky enough to rent your space out and you get rental income, or perhaps you sell tuitions or something and you invoice for that, then you'll have to have a receivable account. Another one that most nonprofits have is something for fixed assets. It's a really small organization. You might just have one called furniture and equipment. We're bigger. We have one for furniture, another one for equipment. If you were really big, maybe you owned a building, you'd have a third one for building, a fourth one for land, a fifth one for leasehold improvements. Let's move down to the bottom part of the balance sheet. Accounts payable. Every single person listening to me should have an accounts payable account. Don't worry, QuickBooks gives it to you automatically. If you owe money to somebody like you have a loan with a bank, you'll need to have an account for that. Now the last thing I'll talk about is the equity section. Equity technically for a nonprofit is supposed to be split up into these three categories, but QuickBooks doesn't track equity that way. Equity is really just one account in QuickBooks. So I'm going to tell you just leave the equity account alone. I don't really do anything to change it because you can't really track that kind of stuff. I'm not even going to get into the details of that. So just leave the equity account alone. So this is generally what you would expect for a nonprofit organization in terms of their balance sheet accounts, but that's not really where I want to spend my time because that's not where most people make the mistake. Most people make a mistake when it comes to the P&L. Now I'm going to actually go over to a different company file that I have here. Sorry, I may have freaked you out. I just made this nice and big. But what I want to tell you is the filing, so listen really carefully. This is what I want you to have when you leave, okay, when you leave any of my trainings. I want you to understand that my goal for you is to first of all make your life easier, make you have to work less time, okay? But I want you to be able to create a P&L compared to budget for the board that is one page. And the reason why is because if your P&L is 15 pages, nobody is going to read it. And if the board doesn't read it, they don't understand it, and they're not happy during that meeting. People are happy when they understand stuff. So I want to give them something that's one page so they can read. Well, the accounts, the income and the expense accounts, they determine the size of your P&L. Now I know there's a ton of you that have inherited a data file and it has 50 million accounts in it. If that's you, go ahead and say that's me. Go ahead and chat it. I bet you there's a ton of you that have accounts that did. A chart of accounts that's huge. And it means that nobody can read your financials. So what I want to do is I want to tell you that my theme is when it comes to your income and expense accounts, they are sacred. They are for the Lord above only, which means accountants, and the board of directors. Those are the two main people we're worried about. So what I want to do is I want to save the chart of accounts for just the most important things that the board needs to see and that I need to see to do your taxes. And the rest of the stuff that you need to track, like restricted grants and things like that, I want to use something else for. So having said that, I'm going to show you what your income and expense accounts should be. And the best way of showing you the right way of doing it is to show you the wrong way. So what I'm going to do is I'm going to go to a different organization here called Wrong Way, pretty obvious. And I'm going to show you what the P&L looks like at Wrong Way. And I made this up because I see people do it all the time. So I'm going to click on reports and I'm going to go over to, I've created my own little memorized report. It's a P&L. So I'm just going to go ahead and create it. Now, here is the wrong way of setting up your P&L, your income and expense accounts. You see this first thing here, restricted grants. See that, restricted grants. Now, how many of you have restricted grants? Actually, I'm not even going to ask. I'm sure a ton of you have grants that are restricted. You get a grant, but you have to spend the money for a certain purpose or over a certain period of time. It's restricted. What I do want to ask you, and Becky, you can tell me what they said. 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 tell the funders? Somebody, chat me up with an answer. Or most of the time. I'm waiting for responses to come in. I know the answer. I could jump the gun. I know. I'll wait for the real answers. Okay. What do you need to tell funders? How you spent your money. Right. How you spent your money. Do you see that if you have an income account that says restricted grants, that doesn't help you answer that question. So this is not helpful. The other thing I don't like about it is it doesn't really, it makes data entry complicated. Because if I get a grant from a foundation that's restricted, I don't know whether to put it down here in foundation grants or put it up here in restricted grants. And what usually happens is sometimes I put it down here and sometimes I put it up here. Okay. So that's a problem. So don't do that. Okay. The other thing is you see where it says Green Truth and United Fund? This is the person who's decided to create a separate income account for each grantor. Don't do that. There's another list where you can track your specific funders and your restricted grants. It's called the customer list. Okay. So we don't need to worry about setting it up in the P&L here for income accounts. So what I want to say to you, let me go ahead and I'm going to scroll up on this a little bit. Well, I'll just go here. And then I'm going to zoom in. You ready guys? I'm zooming in. It's going to freak you out. All right. I'll put this in the center. And then let me wait for your screens to calm down. So anyway, these first four accounts that you see, Individual Contributions, Corporate, Foundation, and Government Grants, that's what I want every one of you to have. Okay. Why? Because that's how I have to have it on the $9.90. That's how I have to have it when I do a financial statement on it for you. And that's a good way for a board member to understand where your money is coming from. Look, we don't get very much money from Government Grants. We get most of it from Foundation and individuals. Maybe there's an opportunity being missed. Or maybe there isn't. Maybe there just isn't Government Grants for my kind of organization. But at least it will spurn discussion during a board meeting. Unless you don't want discussion. I don't know, maybe you just want to get out of there. Anyway, the point is that I want these four because that's what we all need when I'm doing your $9.90. So you might have a fifth one called Religious Organizations or something if you get money from churches as well because they don't really fit in these four categories. Now these first four are what you call earned income. I mean unearned, I'm sorry. These first four are called unearned income in the nonprofit world. It means you didn't earn it. They just kind of gave it to you. Now I know you work for it, particularly a restricted grant. But the point is they're kind of giving you the money. It's not like you're doing something for them directly, the people that are giving you the money. But then there's earned income. That's money. And not all nonprofits have this. But if you're a membership association, you get membership dues. That's earned income. So we have an income account for that. If you're a school, you might have one that says Tuitions. Now I have kind of a generic one that says Program Fees, but I wouldn't want you to have that. I would want you to put whatever your fees are, Workshop Income or Registration Fees or whatever it is. Lump Accounts. So we just have main income accounts. We don't have a separate income account for each grantor. We don't have a separate income account for restricted grants. Now I'm going to move to expenses. Now expenses people mess up even more than they do income accounts. And I understand why. And here's the situation. When it comes to expense accounts, and I kind of don't even want you to see this while I'm talking to you. I'm going to hide the expenses. So just listen to me. When it comes to expenses, regular businesses that aren't nonprofits, they only really have to worry about tracking one thing when it comes to expenses, and that is the natural category. Supplies, travel, salaries, rent, natural way of thinking about expenses. Nonprofits have to worry about that as well. And indeed, whenever you enter an expense, you've got to tell me from your accountant whether it's supplies, travel, salaries, payroll taxes, postage, printing, natural category. But there's a second thing that nonprofits have to track about an expense. Not only do you have to track the natural category, but you've got to put it in one of three buckets. And what are those three buckets? You guys can chat her up and she can tell me. And funders want to know that most money is going for bucket one rather than bucket two. What are the three buckets that you have to put your expenses in for reporting purposes if you're a nonprofit? Anybody know? Becky, are you there? Becky Yes, I am. Sorry about that. I did just the headset. We've got people saying admin, program, fundraising. Gregg There it is. Admin, program, or fundraising. See, if I'm a funder, and I want to donate money to your organization, I want to know that most of the money that you spend goes to help the children or whatever your mission is. I don't want to think that most of the money you spend goes for admin or fundraising. I want to know that it mostly goes to children. As a matter of fact, and don't quote me on this even though we're being recorded right now. But I believe if you want to go for United Way money, 75% of your expenses have to be program related. So I have to figure out a way to track what expenses are in terms of program admin or fundraising. Now here's what people do that's wrong. This is the wrong way. What they do is they will incorrectly set up an account for each one of their programs. This organization is called Synergy Now. And the point of the organization is to get this country on environmentally friendly forms of energy. And they have three ways of doing it. They have a guidance center, an annual conference that they have, and then an aware campaign. And somebody ran in to the bookkeeper's office, to your office and said, hey, I need to know how much the guidance center costs because I'm going to ask the grantors want to know. And so you go, oh, and then you create an account for it. That's wrong. It makes things complicated. First of all, many times when people do this, the biggest expense of all related to your nonprofit is salaries. And for some reason, everybody knows that salaries have to be in their own account. Well, salaries are supposed to be allocated between program admin and fundraising. If you don't do that, it makes it look like you didn't spend very much on your program. Then you're paying an accountant to reallocate this stuff at the end of the year between the programs. Or you're trying to do it yourself and it's a big nightmare. So that's one problem. The other problem is, again, it makes it difficult for data entry. If I spend money on postage and it's for a conference, I don't know whether to put it up here or put it down here. And if I'm your accountant, if you stick it up here, that's not good. I need to know of the money that's in here, what's posted, what's printed. I need to know the natural category. I need to know two things on every expense you enter, not one. I've got to know the natural category and I've got to know whether it's program admin or fundraising. So what we do here, and well, I can't really do it that way. So what I would say to you is, and I know I just zoomed in, don't do this. Do not have an expense account for each one of your programs. And you see this expense account that says fundraising expenses? I know all of you have it. I know you do. Don't have it. We shouldn't have that. What we want in expenses is the natural category only, salaries, bank charges, dues and subscriptions, equipment, rental interest, generic expense accounts, the natural category. Nothing about whether it's program, fundraising, or admin. We use a separate list for that. What's that other list that we use for that? Who knows? I'm waiting for folks to chat in, but we should couch this with a caveat that if you're with a church and the other day this came up, can you mention the difference? And your other list is classes. A billion smart people in the audience know that. But for churches, let's just clarify for them what they would need to do. If you are a church, churches exist by committee. So for churches, I don't have time to go over to a data file for it, but what you want is you want to have an account for each committee and sub accounts for the expenses within the committee. That's what you do if you're a house of worship. But for the rest of you that are regular nonprofits, we just have a natural category here and then our programs we're going to use the class list for. So what I'm going to do is I'm going to go over to a different data file where I have set up the classes. Classes allow you to track your programs. You can think of your programs as your different departments or divisions of your nonprofit. Now to get to your class list, the first thing is you have to have the plus version of the online edition. I'm going to go to this little gear and your class list is in this gear because it's a list. I'm going to click on it. Now does anybody see something that says classes here? No. But do you see something that says all lists? If you click on it, you'll get to all of your lists and one of them says classes. Now if you go to your data file after you get off the phone here or get off the webinar and you push on this and it takes you to a screen where it wants you to upgrade your file, that means you don't have plus. But I have plus, so I'll click on classes and here's the class list. To create a class, you just click new, you name the class, new class, whatever it is, and you click save and then you have a new class. Now every person on the phone will have at least three classes. You'll have one for fundraising, you'll have one for admin, and if you only run one program then you'll have the third one for your program. We have three programs, so we have a total of five classes. Now you've bought yourself a little work because when you go to enter a transaction, we'll go to a check. Not only do you have to say what expense account it is, postage, but you also tell it over here what class it goes to, Synergy Conference. And yes, I can take one check or one bill, and I can point it to multiple. But the benefit is, and not only do you do this on checks and bills, but you also do it on your income. The income relates to one of your programs, you put it to that program. Then what you can do, and this is my big finish here, Reports, and I'm going to go under the Business Overview. I believe it's under Business Overview. You see the one that says P&L by class? I'm going to go ahead and click it. And I actually have to change the date here. So it covers a date that I have some information on. And we'll do it through. And I'm going to click Run Report. Now this is my big finish. Now this isn't a report you would give to the board. That would be a P&L compared to budget. We'll do that next. But I just wanted you to see, look at how cool this is. First of all, your account is going to be really happy because I've got a column here for each program, and then Admin, and then Fundraising. If I look at the bottom of it, I can see that I've spent $119,000 here. Let me get rid of the subaccount so it will be a little bit easier to read. I'm going to push this little collapse button and get rid of all the subaccounts there. And then I'll scroll it onto the bottom. There we go. So we can see that for the Guidance Center, we lost $14,000. It doesn't pay for itself. The Synergy Conference, we've made $6,700. So it's beneficial for you because you can look and see whether programs are making you're losing money. But it's also beneficial for me, your accountant, because I've got the total expenses that the Guidance Center was, $119,000. The Synergy Conference was $48,000. The Aware Campaign was $10,000, and then Admin and Fundraising. And if you look at, and I think I have it pulled up here, let's see where it is. I know I have it here. Here's a $9.90. This is going to be much easier to complete. If you've ever filled out this thing, it's a nightmare by the way. It's like the hardest return there is. But if you go to where the expenses are, I'll go to where the expenses are on this thing. Here they are. Do you see how we have a column for program, a column for management, and a column for fundraising? And then the rows are going to be payroll taxes, salaries and wages, accounting, office expenses, IT, occupancy. These are your natural categories. These are your classes. And if I do an audit for you, one of the pages on the financial audit is this. And here we are again with the same columns and rows. And that's exactly what you see when you go to this report right here. So it's a beautiful, beautiful thing. So I recognize that I'm running a little long here. Let me stop and take some questions here. We can run over. I'm okay with that. But let's take a couple of questions. What do we got? So we have folks asking about when you would use sub-accounts or sub-classes. And I know those are two different things, but can you talk a little bit about when those are going to be useful? I can. I can. So I'm going to go ahead and show the sub-accounts here. I'm going to click expand. And then I'm going to scroll down to where there's some sub-accounts. So here's an example of sub-accounts. Utilities is the parent, and then gas, water, and electric is the sub. Why have I chosen to do that here? Because somebody on the board wants to know that level of detail. If you don't want to know that level of detail, then just make it utilities. So it's a way of breaking things out to get greater levels of detail, but yet you can still roll up to a total so that you don't give the report to the board and it has 50 million pages. So that's the count. Classes, it's kind of the same thing. If you want to use sub-classes, I don't have any sub-classes here. I just have parent classes. But let's say you had workshops that you did, and you did four workshops a year. So you have a program called workshops, and it's like an education program. That would be your parent workshops as the program, but then each individual workshop might be a sub-class. So you can get a little P&L for an individual workshop, but yet it still rolls up to the total. So hopefully that answers that question. I want to spend a few minutes on the budget because that's important, and then I'll be ready to take some more questions. So I'm going to go on to the budget. So where do you suppose you would set up a budget? Does anybody know? It's a set-up thing. So where do you think you would go? Anybody know? Go ahead. I'm waiting for the responses to come in. I see gear coming up. So I'm going to click on the gear, and this is where you enter your budget. Now it's amazing to me how few people use this feature in QuickBooks because you all have to report compared to budget to the board. So I guess you're spending your day in Excel trying to get all this stuff figured out. It takes days, and you're getting ready for this board meeting because one person asks for these special weird reports, and nobody else cares about them, and then that person doesn't even show up at the board meeting. Does that sound familiar? My goal here today is to allow you to do these reports right out of QuickBooks. So to enter a budget, we just go in here to Budgeting, and the first time you go into the screen you will see an interview. So I'm just going to go ahead and click Next, and it's asking you questions. First of all, it wants to know how do you want to create a budget? Do you want to create it from the actual amounts from the prior fiscal year? That's kind of interesting, right? If you were getting ready to do a budget for 2017, you might want to start with 2016's actual numbers because that will guide you in terms of what 17 should be. Or down here you can copy an existing budget. A lot of people do that. They start with the prior year budget. Or you can start from scratch. So I'm going to say start from scratch. I'm going to click Next. And then I'm going to click Next again. And then it wants to know what fiscal year you want to enter a budget for will do July 2016 to June of 2017. It wants a name here. I'll just call it Annual Budget. And then I'm going to click Finish. So what that does is it creates – oops, it's already taken. Name's already taken. Sorry about that. So now what it's going to do is it's going to take us to this window. Now especially those of you that are used to desktop, I want you to pay attention but everybody obviously I want you to pay attention. But here's the thing. The way that you enter a budget is a little different in online than desktop. Now you see you have all of these columns here. One column per month. And then you have your income and your expense accounts down the left-hand side. Now they want you to enter your budget by month. Now many of you don't do that. You don't enter a budget by month. You just enter a budget by year. There's advantages to entering the budget by month and we'll talk about that in a second. But first, for those of you that want to enter your budget by month, I'm going to show you how to do that now. Now this is where it gets complicated for the online versus desktop. This is a grid. People that have desktop, they have this grid in the desktop. But they can type numbers in this grid. This is not where you enter your budget. It looks like you can enter something here but it isn't. You see this thing down here? This area down here? This is where you enter your budget numbers. Not up here, down here. Watch what happens. If I click under Individual Contributions and I click in this box, the cursor is not in the box. The cursor is down here. You see a blinking? Well, if you see a blinking or not, but it's down here. So I'm going to put a budget in $1,000 in July. And then I'll click to the next one. You see how it's not up here? Because I haven't saved it. So you enter it down here. Just enter some numbers here. $5,000 in August, $10,000 in September. Obviously you get more money as it gets closer into the year. And then when you're done, you click Save Next. And when you click Save, you see how I copied the number there? So you're entering down here, up down there. Now to make life easy for you, a little easier for you if you budget by month, let's take rent as an example. It's the same amount every single month. I don't want to have to keep retyping it. So there's two ways that I can get it on here really easily. One is I can go down here and put the first month's rent. And then I can click Copy Across, and it copies it all at once. I click Save. I didn't have to type it 12 times. There's another way of doing it. Let's go to Office Supplies. Let's say Office Supplies is going to be $1,500 for the year. Well, instead of trying to figure out what one-twelfth of $1,500 is, you see this enter by? If I make it be by year, I'll click on Office Supplies, and I'll enter $1,500 for the year. When I click Save, it does the math for me and breaks it all out. Isn't that kind of cool? So entering by month means that you basically are going to put numbers in every single one of these blocks. And I think I have one where I've budgeted by month. So I'm just going to go over there so you can see it. So here's where I've budgeted by month. And the advantage is you can pick and choose like your money when you get more money and when you don't, like individual contributions. As I said, we get most of them as it gets toward Christmas. In the summer, it's usually not a very good time. And the advantage is when you look at a budget to actual report, you can actually compare what you did get for, we'll say July, August, and September to what you thought you were going to get for July, August, and September only. In other words, you can compare apples to apples because you have a budget number by month. Let me show you how to get a budget report compared to actual. We'll click Reports, and we'll go to Think. I'm going to go All Reports. I think it might be under Business Overview. This is just where I was if you're paying attention. Let me scroll down and see if we have it. Yeah. Okay. You see the budget versus actual report right here. I'm going to go ahead and click it. Now, since we can have more than one budget in here, it wants to know which budget I want to compare actuals to. So here's all my budgets I have. I'll do the budget by month. I'll click it, and then I'm going to click Run Report. Now the first time you look at this thing, it's kind of a nightmare. You'll see that for the month of July, you'll have an actual column, a budget column, and then you'll have the amount and the percentage, the variances. That's four columns just for July. Then another four columns for August, another four columns for September. It's kind of a nightmare. So what you do, I'm going to go over here to this Customize button on the top left. I'm going to click it. And you'll see here under Show Grid, it says Accounts versus Months. I'm going to click the drop down here. I'm going to make it Account versus Total. I'm going to click Run Report. And now I've got something that I can give to the board. Let me collapse to get rid of the subaccounts. And now I've got a nice neat little one pager that I can give to the board. It has my actuals and my budget. Now this is for the entire year. Now watch what happens if I change the date range. So the entire year my budget for individual contributions is $70,900. The actual is $73,000. So we're a little over budget. That's great. I'm going to click on the Customize. And let's see what happens in the middle of the year. I'm going to change the date range to September 30 of 2019. So now what we've got here, I'll click OK, is you've got a report that's going July, August, and September. So I'm going to click Run Report. And what we have here, when it pops up here, it's probably popping up for you now, you'll see we have July, August, and September, the actuals. And because we budgeted by month, we have July, August, and September's budget so that we can really see how well we did. Now if you don't budget by month and you budget by year, then this column is going to have the entire year in it and becomes a lot more difficult to figure out whether you're doing bad or you're doing well. So let me just show you another report that I created where I budgeted for the entire year and I didn't put in a number for each month. I just put in an annual total. And let me show you what that looks like. Because I know most of you just do this. Most of you budget by year. So I'm going to click Budget versus Actual. And I've done another budget for the same time period where I budgeted by year. And there it is right there. And I'm going to click Run Report. Let me make this account versus total first. So this is what your report would look like if you budget by year, which is fine at the end of the year. This is 12 months. But I'm going to customize it. And just like I did with that other one, I'm going to make this September, actually I'll make this June 30 of 2019 to September 30 of 2020. I'm sorry, September 30 of 2019. So there's only three months that have gone by. And let me run the report. So this is what you would look like if you… Yeah, that did not work right. Hold on one second here. Okay, well this data file doesn't have the numbers as I would want them to be. I'm really sorry about this. Let me change this. See if I can get this to where it'll look right. Let's try that. That's still not going to work. All right. Well, I didn't really make the point very well here. But this would be my annual budget, and this would only be three months if I was budgeting. You know what? I know what I can do. I can make this just one month and then we'll take some questions. And now the budget disappears. All right, I give up. I messed up that particular example. The point I wanted to tell you is that if you budget by year, this column will always be your annual budget whereas this actual will just be for a portion of the year. So it's kind of hard to tell whether you did good or bad in a particular year. So it's 3.24 now, and the webinar is supposed to end at 3.30. So I have just babbled on forever. So Becky. Becky, we've been plowing away on the back end. I just chatted out we've answered more than 165 questions that still have FTE Plus in the queue. So we're working hard at those. Before I have you stop sharing just a couple of questions. I've got a lot of people asking about how to manage restricted funds, particularly if you have temporary restricted, permanent restricted. Are you able to touch on that quickly? I know you have more detail on the 3.24. So this is something, these are going to be bookkeeper types. When it comes to restricted funds on the balance sheet, technically you're supposed to break the equity section up into three little mini sections, temporarily restricted, permanently restricted, and then unrestricted. And it's supposed to show like that down here. QuickBooks does not do that. You can't get it to do that. Now what I can do is I can explain to you, and we don't do it here. We'll be doing it in the 3-day webinar thing that I was telling you about. I will show you how you can get QuickBooks to tell you what your temporarily restricted net asset number is. And for those of you that don't know what I'm talking about, what these people are asking about is how can you get QuickBooks to track a restricted grant? How can you get QuickBooks to tell you how much of a grant that's restricted has been spent, and what's left that hasn't been spent? That's what's temporarily restricted net assets. And I'm just going to tell you real quick so that you can see this will be kind of like a teaser for the webinar. If you're on the right check screen, here's where you pick the expense account that it goes to when you enter an expense. Over here is where you enter the program that it relates to. And that leaves this customer field right here. This is where you tell QuickBooks that it's paid for out of a grant. This comes from your customer list, which is right here. So you enter your customer right here, and then basically you can do a P&L for a customer as opposed to a P&L by class. The only other thing I need to tell you is your customers are right over here on the left-hand side. This is where you enter your donors, your members, or your students into QuickBooks right over here on the left-hand side. So I'm going to click it. And this is where you would put your grantors here. But you would also put your donors. If you want QuickBooks to track your donations in QuickBooks, you would put your donors here. This is where you go to enter a new customer. What else do we have? Is there anything like of major importance we need to talk about? You know, people were curious how to connect a bank account to QuickBooks Online. Okay, so we'll go to the phone. And I've already got my bank account. When you enter a bank account, the bank account appears here. And in order to connect the bank account to it, you push this button that says Connect Account. And when you do that, it takes you to a place where you type in your bank, and you just follow the prompts. That's where you go to connect the bank. So what I want to do is I want to kind of finish up here, do a couple of things. One thing that I did not get a chance to cover is where to enter your income. There's two methods for doing that. One method is to enter it directly in this window here called Bank Deposit. The other window is the Sales Receipt window. If you want to use QuickBooks as a donor database, you want to use the Sales Receipt window. If you don't because you have another outside of QuickBooks database, then you use the Bank Deposit window. So that's something that I felt like I needed to say. And unfortunately, the webinar is too small to go into the details of how that would work. But what I do want to do is have you stop sharing? Yeah, you stop sharing. I did. I wanted to put this up on the screen to allow people the opportunity to say if they would like to receive the QuickBooks Made Easy newsletter. It's a once a month newsletter. It has lots of great tips that can apply to whichever versions you're using. Sometimes it's on QuickBooks Online. Sometimes it's the desktop version. So feel free to select yes or no if you'd like to be on that or not. I'm going to leave it open for just a moment. And then we'll show those coupon codes again, the upcoming webinar series, and for the tech support. You'll also get those in the follow-up email. And those codes will be good until I believe we said Saturday at midnight Eastern time, so 9 p.m. Pacific, that those will be available. Let me go ahead and talk about that for a second. If you can, go ahead and finish up here with, do you want the newsletter? It only comes out once a month. It's painless. Don't worry. Yep, I was just leaving it open so people could still respond. But we can go ahead and click on the coupon codes and show those one more time. Yes, so basically what this is, just so you understand, we are having three-hour webinars, two hours a day for three days. It's normally $200. We're going to give it to you for $199. It's happening August 16th, 17th, and 18th. To sign up, you go to QuickBooksMadeEasy.com and you type in the code to get the $50 off. The other thing, and this is really a great deal, if you want to talk to me or my assistant Jennifer, that's the two of us that you'll be talking to, you can get tech support for an entire year. We can even dial into the software and help you. We can help you set up your books. We can help you with any questions that you have. It's normally $300, and I don't usually do this. This is kind of ridiculous that I'm doing it. But for $149, we're going to give it to you for an entire year. And it is on the nights and on the weekends as well. You just call the number and one of us will answer and we can help you with any of your questions. It's good these two coupon codes are 48 hours, they end Saturday at midnight Eastern Standard Time. So you've got 48 hours to either sign up for the 3-day webinar or the tech support. You can do both if you want to. And I think that's all that I have to say. And what I would like to do is stay on the line after you're done for a few minutes just for any more questions. I'd like to answer a few more questions live if it's okay with you, Becky. That's okay with me, but I want to be respectful of people's time, so I'll do a little bit of wrap up quickly. Just for folks who are interested in accessing QuickBooks Online Plus donations, or the desktop installed versions, again you can get those at techsoup.org slash into it. You can find the premier one user, three user, Mac, and online subscription. If you're already subscribed to the subscription, you can get the renewal. If you're subscribed to it though without having gone through our donation program, we recommend that you do contact an expert to help you do that because you cannot just upgrade to the donated version. You can go to our website and find that as well at techsoup.org. Click on Get Products and Services Browse by Donor or Provider, and you can select into it. You can also see down here QuickBooks Made Easy. That's Greg's DVD Training Series and Book. This is what those product pages look like. And Greg has the QuickBooks Made Easy, the Essentials program available, so if you don't opt to do the tech support or the webinar series, we've got a great training resource available to you through the QuickBooks Made Easy Donation program on our site. And I'll just show a couple of additional resources for those of you interested in the desktop webinar we ran the other day. These links are not clickable, but they are in the slides that you'll get in the follow-up email. It's at this event right here. And then you can see if you're on an older version of QuickBooks that's installed, we have webinars on all of them going back to 2012. So you can find a lot of resources. And we also have some other ones on QuickBooks Online. So definitely check out the resources we have available on our site. We have lots of questions in the queue, so I'm going to skip over that one. But we would love it if you would chat in one thing that you've learned today that you're going to take back and try to apply or implement with your own instance of using QuickBooks. And we would like you to take that post-event survey to help us understand how we can continue to improve our webinar programs. And I'd like to invite you. I left these two links in here just so that if you are looking for one of these two events later, if you open up the slides you'll be able to get to either of these two webinars in the series this week. Next week we'll be doing a webinar Cultivating and Library Techno Culture. So for those of you joining us from libraries feel free to join us for that. On August 9th we'll have a webinar on web accessibility for beginners. It will be a basic course. And then later in August we'll be talking about managing social media analytics. And then coming soon you'll see that we don't have as many webinars on our calendar coming up because we will be launching a free tech course every month at TechSoup starting very soon. So watch your newsletters. If you're subscribed to Buy the Cup that's the best way to learn about it, but we'll have full course curriculums coming your way, curricula very soon. I'd like to thank our webinar sponsor ReadyTalk for the use of their platform. And again, I invite you to take that post-event survey. I know Greg said that he would stick around for a few more questions. So let's see, I asked that and asked that. We had a bunch of people asking how to turn off inactive accounts and turn them back on. All right, okay. Let me go back into sharing here. We can go back to where the chart of accounts list is. So I'm going to click on the gear. And we're going to go to the chart of accounts list. And we're going to go to the accounts. So we're wanting to see accounts that we have inactivated. And I'm wondering if there's any inactive accounts that are here. Let me go ahead and just inactivate an account. I'll pick this one here, and I'll delete it. So basically inactive and delete mean the same thing. You can't really delete an account in the online edition. It's simply called delete, but it means inactivate, which means you can't use it in the future, but you can still see it in the past. And I believe if I click on the gear, you see the little thing that says include inactive. If I check that box, then it will show me the accounts that have been inactivated. And let's see where my account is. Yeah. Do you see this account here that says, it's right down here. It now says deleted in parentheses, because it's not really deleted. It's just hidden. So it's still there. And then you see the little thing over here that says make active. Next question. Okay, and we're going to make this our last question, and we'll have folks on the back end continuing to answer them while we're doing this. But we had questions about journal entries in QuickBooks Online, and where to put those in, when to use them. And I know you mentioned them briefly earlier. Sure. So journal entries are rarely, you would rarely do a journal entry. Usually there's another place to do transactions just to give you kind of a nuts and bolts. Mostly you'll be either writing checks or entering bills and paying bills. And then if you enter donations you want to pick the sales receipt thing. And that's mainly where you'll be going. So you don't really do journal entries that month. But occasionally you'll need to do one. One example of when you do a journal entry is to record in-kind contributions, which is a topic we'll be covering during the webinar series. That's really the only way to enter an in-kind contribution. But here's where you go to do it, journal entry. Another reason why you do a journal entry is to record depreciation. So if you bought that computer equipment for $10,000 and then you decided you wanted to expense $1,000 a year for the next 10 years, you would do a journal entry for it. Click on journal entry here. And this is where you would enter the journal entry, both for in-kind contributions as well as for the depreciation. So the in-kind contribution, you would create an in-kind contribution income account. And notice how I'm adding the account when I'm right in the middle of entering a transaction creating it. And this will be an income type of account. And I'll click save. And then to make an income account go up, and this is kind of like an accounting thing, but you'd credit it for whatever the value associated with what you were given is. And then you always have to put another side, every journal entry has two sides. So the in-kind contributions will go up. And then whatever the expense is that you would usually point it to had you written a check for, that's where you would put it. So let's say somebody donated some printing for us. We've got a printing company to donate the printing. So you put the other side to printing. And then you would put a class, always very important, every transaction has to be pointed to a class. Then you click save. Again, I wish we had time to get into massive detail, but we'll be doing that when we do the webinar. Great. So with that I think we're going to go ahead and stop sharing since we want to be respectful of people's time. Thank you so much Greg for your time. We really appreciate you spending this 100 minutes at this point sharing your expertise with our audience. And thank you so much to Hector and Deborah whose fingers must be getting tired at this point on the back end. They've been plowing through questions left and right. Thank you to Susan and thank you to Allison also for helping on the back end throughout the webinar. And thank you to you, our participants who have really been an amazing, engaged, interactive audience with us today. We hope that this has been valuable to you and that you can get more value out of watching the recording and reviewing the additional resources, the blog posts, the articles, the other webinars, and also by accessing the training products that QuickBooks Made Easy makes available to you or the tech support or those live webinars. We really appreciate it and hope that you can get more learning and more improvement in the way that you're using QuickBooks for your organization. Lastly, I'd like to thank ReadyTalk for their use of the platform. And just a reminder to please go ahead and complete that post-event survey that will pop up once we close out. We really do value your feedback and try to incorporate it into our other events. Greg has put up on the screen one more time those discount codes. Those will be included in the post-event email that you'll get as well. But feel free to jot those codes down and go to QuickBooksMadeEasy.com to use them between now and midnight on Saturday, Eastern time. Thank you so much everyone. Have a terrific day. Bye-bye. Thanks. Bye-bye.