Accounting 2007 for grant-funded non-profit organizations

[Thomas]

Hello,

I'm trying to determine if Accounting 2007 would be a good solution for our
grant-funded non-profit organization.

At the beginning of the fiscal year we are given funds that are didvided
into a set number of spending categories/accounts. I'm hoping Accounting 2007
will help in keeping track of how much money is left in the various spending
accounts. Has anyone had experience using Accounting 2007 for this purpose?
I'm having trouble initially setting up the accounts in a way that makes
accounting possible. Any help would be appreciated.

Thank you

 

[sheng]

I'm not familiar with Accounting 2007 'coz I haven't used it but I'm a
certifieed public accountant. If your organization will require only
simple/basic accounting processes, microsoft excel and visual basics may
help.

 

[Lance [MSFT]]

Hi Thomas, there are a couple of ways you could do this.

Method 1: use Classes

Classes are the recommended way to track budget categories. Classes are
available in the professional edition but not in the free express edition.

To use classes.
turn on the use classes preference (company menu -> company preferences
command.) This will allow you to tag all and expenses and income (grants in
this case) by category.

Whenever you receive a grant, create a class for it, then enter the grant as
a cash sale with the class set to the one you made for it.

When you enter expenses, each line on the expense grid will have a class
setting. Set the class to match the class for the grant that covers the
expense.

On the Reports menu, there is a report under Reports - > Company and Financial
called 'Profit and Loss by Class'

This will show you how much you collected for class (grant) and how much you
have spent. Your 'profit' will be the amount remaining for the grant. If
you have a loss, you've gone over budget.


Method 2: Divide the cash up into separate cash accounts for each of your
budget categories.

When you receive a grant, create a cash account for the and put the grant
money there.

For example, you might have a cancer research grant account or a mental
health research grant, etc. Whatever it is your orgamization is authorized
to do by the grant.

When you pay expenditures, pay them from the cash account for the grant that
covers the type of work that was done. The balance remaining in the cash
account will tell you how much is left

This posting is provided "AS IS" with no warranties, and confers no rights.

 

[Sandman]

I cannot see the Classes option in Company Preferences! Is this because I
have the free edition?
Also can assets/liabilities be tagged as Classes?