There is no doubt that an NGO’s which is a non-profit organization will also want to track funds that comes from their donors or public support or grant to finance a project. At this point they will want to use an accounting software for that purpose and I will be giving us a little summary on how we were able to setup QuickBooks for non-profits organization NGO’s.
A non-governmental organization is any non-profit, voluntary group of members which is organized on a local, national or international level. It is generally established to engage in not for-profit activities but to render essential services to the community or embark on social projects.
One of our client that has be using excel to track this record called our attention on how to migrate data to the QuickBooks accounting software and we were able to solve their issue using the follow process below.
How we setup QuickBooks for non-profits organization.
Firstly, we imported all the list of donors from the excel into the QuickBooks software either a foreign donor using different currency aside NGN or local donor using our home currency. The system accommodate multiple currencies in other to track donor summary report in their currencies and also track how much they have used to fund a project and how much was expensed or incurred in the project operations. Below is a sample of a donor contribution summary.
We proceeded to import all the vendors and also track our vendor reports on how we have been incurring our expenses either for project purpose or for administrative operations.
We also setup bank accounts in NGN, USD, GBP and other currencies if needed in other to track funds received in foreign currencies and how it is been used to finance community or social projects.
Charts of accounts: This is the foundation of any accounting software that consists of the income heads, expenses, liability and asset of an organization.
Income: The inflows account are setup under the charts of account in other to track the membership contributions, donations from donor, donations from public support, grant and other inflows and this inflows will be mapped to a projects to show its operations.
Expenses: This is an expense account that will be created in the chart of account to track payment for expenses incurred for a project or administrative expenses for office use. The expenses are also mapped to a project in other to check profit and loss by projects.
Class: Class in QuickBooks is used to track projects and you can also track a sub class as a sub projects.
Inventories: Most NGO has inventory but this is not tracked in the business because it’s not for sales. This can be giving out to members of the association as gift, sample promotions or souvenirs. We can only track the quantity on hand in other to know how many we have left in our store.
Reporting: Reports is a very essential aspect of any business that will help owners make decisions for future purposes. QuickBooks for non-profits organization NGO’s has the following reports which are:
- Donor summary reports
- Income statement
- Statement of financial position.
- Income statement by projects
- Audit trail reports.
- And many more.
Reconciliation: The overall essence of an accounting software is to ensure that reconciliation is done with ease and this helps to capture all funds received in all area of inflows and all expenses incurred are also recorded and at the end of the month reconciliation is carried out without any misrepresentation of figures, error of commission and omission.
At this point we were able to conclude the project on QuickBooks for a non-profits organization NGO’s.
For further information on how to setup QuickBooks for a non-profits organization, contact us on +2347012193226 or send us a mail using [email protected]
We offer support services after installation, setup and training.