Thank you for this. Can you do a video showing what the activity in the actual fund accounts looks like after these transactions are done? Also, what an opening balance fund account transaction would look like?
Thank you for sharing this insight on how to show fund balances. Can you show us a sample chart of account layout for these funds. I would like to see the whole picture so i can understand how it all comes together.
I don't think there's anyway for me to upload graphics to a comment, but try this. www.qbassist.com/post/maintain-multiple-fund-balances-in-one-bank-account That's a blog post on the same topic, with instruction and with screenshots. Hope that helps.
Not sure if breaking the bank to these categories is necessary. Rather the fund accounts should reflect as a liability comprising of many donors. The sum of the donors makes up the fund
But you have the cash the donors gave. It's in the bank. This is a way to track those balances yet still only have one bank account at the actual financial institution.
We actually write physical checks. Will QuickBooks keep track of the check numbers since they are sub accounts. For instance if the next check in the operating account is 101 and I choose to write a check from the fund account security which is a sub account of the real bank account will it show check 101 when I print it? How does this method compare to using classes?
That's a great question. I have to admit, I'm not sure how QuickBooks will keep track of the numbering. Give it a try, you set the check number each time you create or print so you'll see right away what QuickBooks is doing. Let us know how it worked for you. As for class, this isn't going to help you with bank accounts. Classes work with income and expense accounts. So, you can get a profit and loss by class, but not a balance sheet.
Remember that when creating a check or deposit in QB desktop, the two affected accounts are displayed. The bank account is at the top of the form and remains unchanged from transaction to transaction unless specifically manually changed. If you post a check or a deposit to a bank subaccount, it will definitely affect the balance.
Hi Keith. You can do this using a credit card charge transaction in QuickBooks. If you don't see this capability in your QuickBooks, it may be that you don't have a Credit Card type of account setup on your chart of accounts. So, do that first. Then you will have the menu and icons to create a credit card charge which tracks expense account and class just like a check or a bill.
I have not used it with QBO, but it should work. The chart of accounts is structured similar to QB desktop. That is, you can have sub bank accounts, use them with checks and deposits, reconcile only the main bank account, all just like desktop. I can't think of a reason it would not work.
Thank you Sir for a simplified explain method for a complicated matter. I am sure many of us are greatly appreciate your wonderful work. God bless.
Glad it was helpful!
Thank you for this. Can you do a video showing what the activity in the actual fund accounts looks like after these transactions are done? Also, what an opening balance fund account transaction would look like?
Thank you for sharing this insight on how to show fund balances. Can you show us a sample chart of account layout for these funds. I would like to see the whole picture so i can understand how it all comes together.
I don't think there's anyway for me to upload graphics to a comment, but try this. www.qbassist.com/post/maintain-multiple-fund-balances-in-one-bank-account That's a blog post on the same topic, with instruction and with screenshots. Hope that helps.
Not sure if breaking the bank to these categories is necessary. Rather the fund accounts should reflect as a liability comprising of many donors. The sum of the donors makes up the fund
But you have the cash the donors gave. It's in the bank. This is a way to track those balances yet still only have one bank account at the actual financial institution.
I agree that it shouldn't be on the bank side. Should be broken out in the equity. Never seen it done this way.
We actually write physical checks. Will QuickBooks keep track of the check numbers since they are sub accounts. For instance if the next check in the operating account is 101 and I choose to write a check from the fund account security which is a sub account of the real bank account will it show check 101 when I print it? How does this method compare to using classes?
That's a great question. I have to admit, I'm not sure how QuickBooks will keep track of the numbering. Give it a try, you set the check number each time you create or print so you'll see right away what QuickBooks is doing. Let us know how it worked for you.
As for class, this isn't going to help you with bank accounts. Classes work with income and expense accounts. So, you can get a profit and loss by class, but not a balance sheet.
My sub accounts are showing zero and well as the total on my deposit
Remember that when creating a check or deposit in QB desktop, the two affected accounts are displayed. The bank account is at the top of the form and remains unchanged from transaction to transaction unless specifically manually changed. If you post a check or a deposit to a bank subaccount, it will definitely affect the balance.
Thank you. Can you help me understand how to pay expenses from Credit Card and have it log correctly in accounts and CLASS?
Hi Keith. You can do this using a credit card charge transaction in QuickBooks. If you don't see this capability in your QuickBooks, it may be that you don't have a Credit Card type of account setup on your chart of accounts. So, do that first. Then you will have the menu and icons to create a credit card charge which tracks expense account and class just like a check or a bill.
Great video. Does this method also work for Quickbooks Online? Thanks!
I have not used it with QBO, but it should work. The chart of accounts is structured similar to QB desktop. That is, you can have sub bank accounts, use them with checks and deposits, reconcile only the main bank account, all just like desktop. I can't think of a reason it would not work.