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Invoice message to client sample for non-profit organizations

if your organization is funded via grants in any type of form of fashion then you are going to want to stay tuned to this video today I'm going to be showing you two different ways that you can track your grants and QuickBooks online and I'm also going to show you how you can upload import add a budget whichever one you prefer in QuickBooks online that is grant-based right for this particular Grant versus just for the organization and so if any of that sounds good to you keep watching [Music] okay so here we are this is a test nonprofit what you'll see here has been stuff that has just been added by me and I didn't want this to be too perfect so you'll see I might stumble through a little bit because I'm going to be adding things as we actually do it and walk through it so you can actually see what it takes to do set thing the first thing we're going to do is walk through the first way that you can track your grants in QuickBooks Online online and that is using the p&l report essentially but filtering your p&l by customer so let's get into that so first off let's just make sure we have the customers set up we only have two customers set up we have DHS and the green foundation so we're good there so in your dashboard when transactions would come in in your categorizing you want to make sure that you're not only booking to the correct account but that you are also indicating who is the customer now these transactions have already been added right and so we can't do it there but you know what let's go ahead and let's just make one up for the sake of this this example we are going to say that we got the office cleaned right we're going to say that this nonprofit operates in person they got the office clean and DHS allows them to expense office cleaning we'll say this is programs but the biggest thing here is indicating who the customer is in this customer particularly is DHS and we're going to say let's say the cleaning was I don't know $500 let's save and close that just to kind of put a bow on what we just did essentially it would be any transactions that came in when you're closing the books let's say for that month any transactions you make sure you categorize it to the correct chart of account account and um you make sure that each transaction is put to that particular customer which in this case would be whoever like that funer is and in this example that's DHS if I wanted to see okay well how much money did DHS give us how much money did we spend we're going to run a p&l but then we're going to filter by the customer so in this case we're going to do all dates because these dates are all over the place remember this is a test not perfect so this gives us all of the income and expenses we're then going to customize and we're going to go to filter and we're going to go to customer and we are going to click DHS and then we're going to run a report so here what we see is that we have $400,000 in government grants and contracts from DHS as well as Grant income now naturally we this wouldn't be the case right so typically wherever the funding came from for DHS we would put it to the same income accounts the idea though is to make sure whatever income was given to the organization whatever Grant right that came from DHS that we would indicate that it was from DHS and that's what we did here name DHS the expenses so we see here so far $10,000 has been spent against this grant real simple way if you wanted to kind of just you know do a check to see how much money did we spend so far you know and what categories did we spend because the other thing is that some grants you can only spend in certain categories right so you might take a look at this and see small tools and equipment what's that like they didn't give us a budget for equipment and so you might have to determine okay wait I can't even allocate this to DHS just wanted to show you really straightforward how you can track it using the p&l that is is the first way to track it the second way is using projects now a lot of times especially in New York you will have an agency a government agency so let's say DHS is one of those right but they can issue you different grants and contracts in this case we're going to say that DHS is the funer but the actual Grant is called Help Me Howard what we would do here so you kind of see it set up already but I'm going to show you I'm going to take a step back and show you actually how I set it up and then we'll dig into this actual example so you would go to new project you would give the project a name so let's say in this case the name would have been Help Me Howard and then we would have said who's this project for and we would select the fun right in this case the funer would be DHS you also see that here right customer DHS some grants have a start and end date right some grants are annual you have to spend down by the end of year some are multi-year but essentially you would put in the start date the end date the status right and then you would click save that's how we got here okay so now I'm going to click into Help Me Howard this gives me a bit more detail some of the things that we did with the initial the first way you would do here this just gives a little bit um a bit a bit of a different View and there's also a specific report that we can run when we use projects so I'll get into that let's be clear on what the expenses and the income is and so here we see that there's Grant income right that we received from DHS and we're going to click on that just so I can show you so you see here the name is not just DHS it's DHS Help Me Howard so we had to be specific because it wasn't just a highle DHS Grant DHS gave us a specific Grant so in this case we click here and you see $30,000 was what they gave right and we indicated that that came from DHS Help Me Howard then What expenses right so when you're closing the books you see your expenses you have to indicate okay what goes towards help me how it versus what goes towards you know something else just to show you you see here customer project so you have customer is DHS this project is a sub is a sub under DHS because it's its own project but it comes from DHS so you see here so we wouldn't just select DHS if it really is for Help Me Howard because we want to be as specific as possible you see it says customer slash project but before you even get here you have to make sure the project is actually set up for tracking and that was the first part that we did when we went to add a project just wanted to point that out so now if we were to go back here now we have $330,000 that we're expecting from DHS you see it says open invoices so that means that we invoiced them for the $ 30,000 they didn't give get it to us yet but that's neither here nor there for this example but that's where the $30,000 came from so this is what we're expecting from DHS Help Me Howard What expenses did we have so far for DHS Help Me Howard we had contract and professional fees of $7,000 and some kind of office expenses which you can of course drill down into of $2500 that totals 9500 this tells us how much we have left to spend on this specific Grant let's get into some of the other things that you can see transactions if we wanted to dig into the details okay well what exactly is even in here this tells us here if there were employees that were tracking time this is where we start getting a little bit more complex right but we know that a lot of times you know certain grants will cover salaries for certain employees and so if there were employees that should have been tracking time against this grant there's a way to set that up and you can track it here and then project reports right you have project profitability if we were tracking time the ability to see the time cost by employee unbilled time and expenses because some grants as you may know are um billable right you might have to spend first and then invoice for the money and so important to know and then estimates versus actuals typically the report that we would run most often would be this first one so let me show you what that looks like and this is just showing overall for the life of the grant how much we received how much was spent again as you can see it is very similar to the first way that we were tracking with the exception that this is for Help Me Howard and not for DHS overall which is why you only see 30,000 and not that 400,000 because that 400,000 was not for Help Me Howard so that's why we always have to be very specific spefic with who our money came from that's what the project report looks like if we were to set up estimates they say estimates versus actuals another way to word that would be budgets versus actuals we'd be able to see what was budgeted versus what was spent and of course the difference so we know how much we had now there's another way to do that which is going to be that bonus way that you know I told you I would show you but then lastly you have attachments and I did want to point this out because we are believers of you know making our life easy so typically what we would do here is we would actually attach the grant agreement so whatever Grant agreement we received for Help Me Howard we would actually attach it here so that we didn't have to go looking for it in the event that we were doing you know some kind of work or reporting on that particular Grant and wanted to maybe refer back to the grant agreement it all would live here and so this is the second way I really like projects because I feel like you get a bit more of a deeper view I love this view better than just looking at the p&l but that's my preference last thing I'm going to show you is budgets now a lot of these grants typically come with budgets and you typically have to track budget to actuals that's why we say too when you are creating your monthly financial reporting package you don't only create it for the organization but you should also be creating It For The Individual things that you're tracking this would be one of them right so if you have grants that you're having to spend down on that you're may be having to report on you want to see what that budget to actual looks like kind of started it but I I um pause because I wanted to be able to show you guys so you can create multiple budgets and you can so you can create the overall organizational budget but let's say we wanted to come in and we wanted to create just a Help Me Howard budget that's what this is but I'm going to show you how I set it up at first so we would create click create budget we we would select whatever period it was for and then we would click subdivided budget because we need to be clear that we want this budget to be by customer and then we'd have to select who is that customer in this case it's Help Me Howard then we select Help Me Howard and then we click next and it create the the budget for us where we'd have to then plug in the numbers so now I'm going to take you to the part where this is what that is so here is where you can determine you know is your budget by yearly you know by a year quarter monthly in this case we're saying it's yearly we have helped me Howard and so let's just say $330,000 is what they expect in in income now here you would be plugging in in these numbers from the actual budget that you've got that you received from the fun pretending that I got that already so let's say they told me we could spend 4500 in accounting fees they said we could spend another th000 in legal remember this is all just playing around here now here is not showing any actuals because all those expenses is for dates I think some of them dates are like 2022 so what I'm going to do is run all dates and see if we can look at it like that so here you see the overall DHS budget but that's not what we concerned with so let's scroll on over we trying to look at Help Me Howard right specifically oh this where I messed up at you see it was gr income not government grants and contracts so sorry y'all I want to fix this because I want to be able to give you guys a clear view of what this really should what this really should look like y'all are really getting but the behind the scenes nitty-gritty okay I didn't want this to be too perfect so you could actually see that sometimes you you fumble around a little bit you make a mistake or you might you know forget to do something or you might realize you know you did something you know wrong whatever the case may be we budgeted $30,000 so here we know we supposed to receive $30,000 but we know we invoiced them $30,000 but they haven't given us the money back yet which is why this shows that we haven't received anything yet so naturally that's going to be negative so here there's no actuals we haven't spent there yet there should be all dates you see what I'm saying so now we received we we've indicated The Pledge here I'm assuming that's what yep it's going to show us the invoice because they're on a cruel basis so we've recruited for it supposed to receive 30 you see the actual contract and professional fees we see that they gave us 5,500 they gave us 4500 in accounting 1,000 in legal we've actually spent seven now here's where I'd want to this is where me being a stickler comes in because this I'd want to not just put to contract and professional fees I'd want to know who did I pay here this should be specific like was this for accounting or legal so if I was somebody who came in and I was reviewing this that would be one of the first questions that I would ask here is a good example of the budget says $11,000 can be spent towards more small tools and equipment we've actually spent 2500 so that means that $1,500 of this has to be moved from Help Me Howard because we're not able to I think that's the thing that trips up organizations because for some grants if you spend in a category where you're aren't supposed to especially for those grants that are reimbursable they won't give you the money until you adjust and so typically when you send them the report you have to make sure that it is clear that the what you've actually spent is an allowable expense and it's included in the budget and so again this is just an example of being able to not only track it by p&l by customer or by project but also um when you need to run reports at the end of the month you should also be looking at the budget to actual for your grants just to indicate where they stand because it helps you to make better decisions you know if you have funds that you can spend down in a particular Grant or if you've accidentally spent in an area where you weren't supposed to and need to reallocate those funds or whatever the case may be so okay class I hope this video was helpful I know it was a bit more handson than normal a lot of screen grabs watching the screen but hopefully you got the gist of what it takes to track your grants and QuickBooks online and remember if you have any questions or if there's any part that you want me to dive deeper into just drop it in the comments and I'll add it to my film schedule and we'll get it up sometime this year okay thanks for watching I'll see you guys in the next one [Music] a