Each nonprofit organization is responsible for the proper collection,
disbursement, and control of all money relative to the funds the organization
receives. For example, a school superintendent is responsible for all School
Activity Funds, including agency funds that are held by the school in a
temporary, purely custodial capacity.
Fund accounting assists in determining the amount of revenue (or expense)
realized from an activity or fund after taking into account expenditure items.
It can also help you determine if theft has occurred, if sales are too low, or
if the markup is sufficient to cover costs or to allow a suitable profit for
You can use QuickBooks to:
Enter and manage fund information.
Track and report on funds from multiple sources across multiple budget
Create a class for each
fund that you want to track.
Assign the appropriate class to each QuickBooks transaction.
When you receive a donation or payment, select the class that corresponds to
the appropriate fund for all receipts and disbursements. This enables you to
track the amounts related to each activity or fund separately.
Generate the Budget vs Actual by
When you enter funds as classes, this report compares your budgeted income
and expenses to your actual income and expenses by program or fund.
Although QuickBooks provides you with a procedure for checking your fund balances, it cannot give you a Statement of Financial
Position (Balance Sheet by fund/class report). It can, however, give you a
Statement of Financial Income and Expense (profit and loss report) by fund
(class) and a Statement of Functional Expense report.
You can use these reports to help categorize your income and expenses
correctly and to save time filling out IRS Form 990. You can also use the
Budget vs Actual by Program/Project report to monitor real-time activity of
your funds (when you set up funds as classes).
funds with classes
Other uses for classes (besides
beginning balances for funds
and report with fund accounting
your fund balances