Create Invoice for Consulting Services for NPOs Effortlessly

Invoice for consulting services for NPOs

foreign QuickBooks Enterprise Deep dive webinar my name is  Kat roskovic and I'll be your host for today and   we're going to be talking about Grant tracking  for non-profits So today we're going to cover   again again Grant tracking for non-profits so a  couple of pieces that we're going to go through   is set up transactions and Reporting so I'm going  to switch over to QuickBooks here and I've just   got an empty company file I do have some uh you  know just generic accounts set up in my chart of   accounts I've got a big account I've also got some  expense accounts and I'm actually going to modify   my income account and I'm going to make this  a Grant income account previously used for   another one so we're just going to modify  that and then I might delete out some of my   us tickets sold accounts here oftentimes I see  that non-profits do not have cost to goods sold   accounts um we're not going to use any in this  demonstration but there are definitely um reasons   why you might uh sometimes I see nonprofits having  you know bookstores or gift shops or that kind of   thing we would definitely have some cost of goods  sold if that was the case but for this file we're   just going to be talking about Grant tracking  so I've got my Grant income account set up   I've also got some additional expense account  set up as well and I'm going to add one more here okay so I've also got in case your non-profit  needs to track do fun tracking so basically   tracking my profit and loss by different funds  but also my balance sheet right so running the   balance sheet by class is how we typically see  that set up so I've enabled class tracking under   my preferences here so accounting company  preferences I've got class tracking turned   on now one of the things you can also do is  set up to have classes assigned to uh names so   I'm actually going to do that as well and again  turning this on doesn't mean that it's required   right that you have a class assigned to a name but  it gives you the option of having a default class   so you don't have to have it and you can always  override it if for some reason you need to but   you'll see how this will kind of help us as we're  going through this process so I've got that taken   care of and then I'm going to add a couple of  classes here so first class I'm going to have   is just going to be direct Grant funds and then  I'm also going to add one for just general fund   and that's all I'm going to use for this  demonstration you may have additional   um you know funds that you need to track by  those can be set up as classes if you want to   get into more what your prices are and tracking  of course you can always reach out to us for help so now that I've got my classes set up  the other thing I'm going to do is I'm   going to set up some items so oftentimes  when we're implementing a grant tracking   for clients the biggest piece and the  reason why we have to do that the way   that I'm going to demonstrate here is because  oftentimes those grants do not follow the same   fiscal year as a non-profit so you  may have a non-profit that they run   you know October 1st through September 30th right  that's their fiscal year but they may have grants   that fall in line with the calendar year or run  an off-cycle year right uh you know March 1st   to the end of February or they may also go over  a period of multiple years we have seen that as   well so that's where it becomes really difficult  to track that using the regular budgeting tool in   QuickBooks because that budgeting tool of course  follows your calendar year so tracking using that   budget tool is usually not helpful so that's why  we've got this process so typically when we're   implementing this for clients we look at their  chart of accounts and especially for any accounts   that they have expenses for Grants posting  too we want to set up items for those as well   so I'm going to do a couple of examples here I'm  going to just you can save my fingers some typing   I'm going to take office supplies and I'm just  going to go over to my item list and I'm going   to add a new item and I'm going to call that item  office supplies and I'm also going to make this a   double-sided item so for my expense account and  for my income account I'm actually going to put   Grant income so for all of these expense account  is going to be going to office supplies income   account is going to be going to Grant income  and then I'm going to pick another one here so let me go back to my chart of accounts and I'm  also going to grab that subcontracted services and you'll see that I'm setting these up as  service items the reason that I'm doing that   is actually because that allows me to if I ever  wanted to use uh one of these items on say payroll   like I wanted to track hours to a particular Grant  and actually have it go against a specific line   item that I had set aside for labor on that Grant  I've got to have that set up as a service item so   typically we see all of those set up as service  items just in case that ever becomes a need so then from here we're going to go ahead and set  up the uh customer and we're going to start with   whatever The Grand Tour is right so um you may  have grants that are coming from the government   from other non-profits right lots of different  sources for that funding so typically whoever is   the grantor right with you being the grantee  we're going to set them up as the customer   then we're also going to add and you can see right  there it's trying to prompt me to add a class but   I'm going to actually add my class onto my job  so I'm going to come in I'm going to add a job   and let's just say this was the actual Grant so  whatever that Grant is called and let's say that   this grant is for we're just going to call it  2023. now on my additional info tab I'm going   to go ahead and assign the class direct Grant  funds and then you also have the option of adding   um you know maybe you have a particular Grant  or list of Grant managers those may be used as   a sales rep if I wanted to be able to kind  of filter some of my data so I'm just going   to go ahead and add Jane Smith to this grant or  just pretend that she is the grant manager here   you could also have a customer types you can see  this sample file still has my default QuickBooks   types but I've also seen customer type being set  up as grant that again just allows me a little bit   more uh ways to filter some data and reports in  case I'm using this job cost feature for things   other than grants right maybe I'm tracking  expenses for assets or tracking expenses for   um you know other non-grant funded programs  that we have so this is just another way to   kind of filter that out on some  reports right so more information   and knowledge of how to use some of  these fields is important during setup   all right so now I'm going to come in here  and I'm going to add an estimate for my grant   so this is 2023 right grant 2023 um I'm gonna  just pretend that this grant actually did   exactly follow my calendar year so I'm going  to have my estimate date is the start date of   that Grant sometimes I've seen custom Fields  added on to here for things like award number   Etc you can certainly do that I'm just going to  keep it simple so these line items here right   which we would have set up in our items list  and we'll correlate to accounts in our chart of   accounts these are going to be my line items  that are approved right for my grant budget   so let's say I had office supplies in here  and I'm just going to say that I had a 10 000 office supplies and then let's also say  that I had some contracted services okay so   we've got a grant for um for 30 000 here uh and  so what I'm going to do is I'm going to say save and then we're going to come in and we're going   to enter in some expenses for that  Grant so let's go back to my vendors okay so I don't have any vendors so let's just  recup a vendor here we're going to have supplier   and we're also going to have  one contractor let's just say all right and then what I'm going to do and  you could utilize this right on any type of   transaction if we were using a credit card  transaction we'll have the items tab if we're   using a check transaction we'll have the items  tab so I'm going to go ahead and enter a bill to my contractor vendor and let's just say  that this bill is for five hundred dollars   and I'm going to put this knot on my expenses  tab but I'm going to put it on my items tab   so I'm going to say subcontracted  Services let's just say oh it's 500. and then I'm going to put it to that job and you can see there that it's picking up that  direct Grant funds class right away so it's   defaulting there because that is the class that I  have assigned to this job now the same would hold   true if we were using uh you know those service  items on payroll right if we any transaction   where we pick that customer job it's going to  automatically pick up that direct Grant funds   so then let's go ahead and  add another expense here supplier and let's say this expense came in  in March and we're going to add I don't know and same thing I'm going to not have  that on my expenses tab I'm going to   have it on my items Tab and I want that  to go to that line item on my grant   and check that box so it doesn't keep  popping up as well I'm going to pick my   Grant and it's again going to default to  direct Grant phones now I'm not going to   Mark these expenses billable because we're  going to build them a little bit differently   um so I'm just unchecking  those boxes as I go through now it's important to note that if you got a  bill and part of it was for a grant and part   of it was maybe for some other office  supplies that are more General don't   go to this grant specifically right you  can still use the expenses tab for that   um I could put it to office supplies and I  could put it to the general fund as an example   right so you can use both both tabs  at once there's no harm in doing that   um you just have to make sure if you think  about in your head anything Grant related   we definitely want to use that item as Tab  four and you'll see why here in a second   so let me go back to my estimate because I just  realized oh good I have my class turned on I just   wanted to make sure of that so right now we can  run a couple of reports so first off we can run   um our profit and loss by class now we have not  invoiced against that Grant to draw down any   funds but you can see that we've spent right  2500 and then of course we had 3 000 going   to office supplies now at this point I could also  run my profit I'm sorry my balance sheet by class   and I'd be able to see again I don't have any  Bank transactions related to this yet but you can   see how that one bill that we posted for um the  two thousand dollars in office supplies for the   grant and then also another 3 000 for just general  fund it does um you know apply those to based on   how that bill is uh is tracked So based on how you  classify those line items on the bill you will see   that impacting my uh the balance sheet by class  report now we can also see if we go and run a job   report and we're going to go to estimates versus  actual detail and I'm going to pick Grant 2023 one now here I can see what my estimated  cost is what my actual cost is   my difference my estimated Revenue now for Grants  this grant in particular there's no indirect funds   on it so we are basically allowed to spend a or  Draw down exactly what we spend some grants will   have an indirect portion as well yeah that's  similar to what your situation is reach out   we can help you get that set up as well but  for right now we've got 2 000 going in as   actual cost against office supply is 500 against  subcontracted services so what I'm going to do and   if I was running this through let's just say the  end of uh January so I needed to see what I you   know what I needed to draw down I can see I've got  500 here then I don't have any actual revenue for   that so what I'm going to do is I'm going to come  in and I'm going to say customers create invoices I'm going to type in that Grant   I'm going to say okay and I am going to  look back at 500 on subcontracted services and let's say we were doing this for January  we're going to keep that date the same now for a lot of my clients that are doing this  tracking these invoices and the estimates are   internal documents only so they're a way that we  use transactions in QuickBooks to record things   how we want them to show up on reporting not  necessarily to you know share those documents with   our client because they're paying from those you  know oftentimes you are just reporting up to the   grantor not on an invoice what you've spent and  they're typically wiring those funds so this is   just a way to be able to track that a little bit  easier in QuickBooks so if I go back to my report   now I can see that I've got my actual cost  my actual revenue for those two are the same   so 1950 1950. now if I wanted to run  this report through 331 23 I can see   that I've got another two thousand  dollars that came in through the end   of March so then I would do the same  thing again go and create an invoice   for those funds that came in that are that  we spent the two thousand dollars and then   we've got that and then of course when you receive  payment for those funds we can do receive payments I'm going to pick that grantor we're going to   say they paid us the 500 let's say  they paid it to us on February 1st all right so no change there right because I I've  already invoiced that amount out but if I go back   to my balance sheet by class you'll see that we  now have five hundred dollars in direct Grant   funds sitting in our undeposited funds account  which we could move those over to our bank account   um could also set up in your file if you  need to right if if you are getting wired   funds as an example um there is an option  to have undeposited funds go straight to my bank account if I want to so let me  just turn that on so you could see the   difference there and what that transaction  will look like uh nope I record that all right so let's go back to  that balance sheet by class report so if you want the option on your  payments again I just turned off   undeposited funds that undeposited  funds account will still exist   but now I get this drop down box so if I'm  getting wired funds from a particular grantor   I'm able to say hey I don't want to carry those  through undeposited funds they're going to match   Line to Line with something on my bank statement  I can actually have those go straight to checking and then if I have other you know donor funds  that I'm getting in ETC I could record those   using you know a sales transaction if I wanted  to that might be a future topic we can go through   um or have those just go straight through um  onto a deposit I'm just going to say yes here   yep and then let's look at that  balance sheet by class report again   and now we can see that we've got 500  indirect funds sitting in our checking account uh we're still negative 2 000  here now you can still utilize   the profit and loss by job report  as well that's another report that   some of my clients will use I'm just  going to show that real quick here and this is also where you  could filter this report if I just wanted to see Jane Smith as an example  so we're going to show me the total for grantor   but if there was other grants in here that Jane  did not um you know keep track of we would be   able to see just hers on here so that's something  else I wanted to know as well okay so hopefully   you've learned a little bit more about how you  can utilize the job cost feature of QuickBooks   to track grants for non-profits so a couple  of future courses we have of course the what's   new in 2024 is coming up as I just mentioned we  also will be talking about recurring Services uh   FSM so field service management integration with  QuickBooks Enterprise is also coming up and then   uh if you have any suggestions for other things  that you'd like to learn feel free to shoot those   over and we can get those added thank you so much  I hope you all have a wonderful rest of the day thank you [Music]