USA Chart of Accounts issues


Joined
Sep 18, 2019
Messages
2
Reaction score
0
Country
United States
Hi all!

I am not an accountant and I haven't stayed in a Holiday Inn Express in a while, so I need help! I am attempting to get Quickbooks Online setup for a non-profit that I am a member of. I will explain the situation of what we do and then ask for advice.

What we do:
We are a non-profit boosters that supports the fine arts programs (band, choir, drama, etc) at a high school. We have many fundraisers and donations, just like every boosters program. The issue that I am having is understanding how to store all of the information. The checking account and expenses are easy enough. The issue I am having is that each student has a "student account" that is technically nothing more than a collection of records from every time that they owe money (band fees, checked out candy, etc) or make money from fundraisers. I don't understand how to create those accounts.

What do I need help with:
I am having a lot of trouble understanding and deciding what those "student accounts" should be as far as accounting. I thought at first that they should just be sub-accounts of our checking account, but then I realized that we charge the kids fees that doesn't technically reflect in the physical bank account. For example, band fees are added to their accounts every season for $100. If I were to add a $100 debt to each account for band, it would reflect the main checking account by reducing the balance by $100 * number of kids. Then I thought maybe they should be accounts payable, since we are technically paying them to attend fundraisers, etc and soon realized that I cannot modify a payable account manually, that everything needs to show on the general ledger. As I have said, we are a non-profit, so I setup quickbooks as a non-profit and have made the "customers" to display as "donors". Should the student accounts be made as donor accounts? If that is the case, how do I track that money? As invoices? I am literally confused as could be. Sorry!

So, my question is, how do I setup these "student accounts"? What type of account should they be? Should they even be in the chart of accounts? I am losing my mind at this point and could seriously use some help. Thank you in advance for anyone that supports our organization and my lack of accounting skills!

Sincerely,

Jay
 
Ad

Advertisements

Joined
Nov 17, 2019
Messages
18
Reaction score
3
Country
United States
Hi Jay,
My apologies for lack of response from the forum. I pop in here once in a while. Hopefully, you have not yet given up on the accounting for the NFP.
Here are my suggestions:
• Don't overdo the accounting. It sounds like these are fairly small numbers of students and dollars, right? You're not handling millions of dollars or thousand of students . . . ? And you are not getting audited by the IRS? (What we call in Accounting "The Reporting Environment".)
• So it is probably best if you just keep track of the candy boxes, dues, whatever in Excel, and then just post monthly numbers to QuickBooks.
• You will just need to make sure that all your numbers tie out, and you can balance back to the $ amount in the account, the inventory of candy boxes, etc.
• Keep a simple folder/filing system for your paperwork.
• Set QuickBooks up in the simplest possible way. Otherwise, unless you have fairly special NFP reporting/tracking needs, you will spend all of your time trying to figure out how to get QuickBooks to do what you want.
Hope that helps!
 
Ad

Advertisements

Joined
Aug 26, 2014
Messages
2
Reaction score
0
This may be actually my first time replying on this forum. I haven't lurked around on here in years. I think I may be able to help though. I work for a government agency that has a non-profit foundation and we also use QB. It sounds to me like you should setup the student accounts as customers. I think they would be called donors in "non-profit" terms. And yes, when they owe money, you would create an invoice for the amount of money owed. Effectively, you would be use a modified-cash accounting system. Let me know if that works or if I'm missing anything.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Chart Of Accounts Construction - COGs or Expenses? 1
Chart of Accounts 1
Chart of Accounts 1
Chart of Accounts 0
chart of accounts 1
USA Chart of Accounts 3
Charts of Accounts 4
Chart of Accounts 4

Top