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QuickBooks setup for Government Funding tracking
We use QuickBooks Online. Does anyone know of a resource that helps us set up our books for government funding compliance?
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5 Replies
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Use your QuickBooks Online projects are to track the profitability of your projects. You can add project income, expenses, and labor costs and run project-specific reports from a single dashboard.
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<div>Below is a link to a compressive YouTube video on nonprofit accounting. Even though the video presentation is with QuickBooks Desktop, many of the concepts can be applied to QuickBooks Online.</div>
I hope the above link helps.
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If you are working with just a few government grants, classes and projects can be configured to track them in Quickbooks. If you have a larger portfolio of government grants, Quickbooks is not as well suited. Accounting software that can apply multiple dimensions/segments to each transaction is then required. A number of years ago Abila MIP Fund Accounting was the gold standard for this type of thing. Today, it’s Sage Intacct. My organization will be transitioning from MIP to Intacct this coming year. Intacct is superior in practically every way, from its reporting, to drill-down capability, to A/P automation. But one feature that really helps with government grants accounting is its dynamic cost allocation module. So, in other words, as your grants portfolio changes (old grants expire, new grants are added to the mix), and as headcount fluctuates, the formulas that allocate various expenses to the grants are updated in real time.
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Hello Susie! You can definitely set up QuickBooks Online for government grant tracking. I particularly like the way you can generate invoices for reimbursement with billable expenses. Projects is certainly an option but I think another way might give you more robust results. Your particular situation would determine the best way to go.
I am a QuickBooks Online ProAdvisor and would be happy to make a recommendation for file set up. My email address is cjconsulting621@gmail.com.
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For government funding, the standard project features in QuickBooks Online may prove insufficient when compliance requirements become more complex. A more robust solution, such as Sage Intacct, is often discussed for its stronger grant tracking capabilities. The initial setup requires careful consideration of reporting needs. I hope this perspective provides some assistance.
