McConnell Jones LLP and GrowthForce LLC presents:
Bookkeeping and Tax IssuesImportant to Important to Nonprofit Organizations
August 12, 2009
QuickBooks
Q i kB k f N fiQuickBooks for NonprofitsUnleashing the Power in your World
Margaret Gow, CPA*GrowthForce LLC
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QuickBooks for NonprofitsQuickBooks for Nonprofits
UnleashingthePowerinyourWorld
TheNonprofitEdition Mythvs.Reality
MeetingtheUniqueneedsoftheNonprofit
BoardReporting MakingitEasy
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Myth vs RealityMyth vs. Reality
Myth:
NonprofitoffersmorefunctionsthanotherQBEditions
Reality:Reality:
ThefunctionalityisexactlythesameasStandardPremier
Examples:Examples:
NonprofitMenu SetupBudgets
Pro/PremierMenu Company/Planning
EnterDonations
EnterPledges
Programs/Projects
Create aSalesReceipt
CreateInvoices
Classes
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Myth vs RealityMyth vs. Reality
Myth: NPhasbetterreports
Reality: Samereportswithnewnames
Examples:Examples:
NonprofitMenu BiggestDonors
Pro/PremierMenu SalesbyCustomer
Budgetvs.ActualbyDonor
ProgramReport
StatementofFinancialPosition
BudgetbyJob
ClassTransactionReport
BalanceSheet
StatementofFinancialIncomeandExpense
StatementofFunctionalExpenses (990)
ProfitandLoss
Profit andLossbyClass
Expenses(990)
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Myth vs RealityMyth vs. Reality
Myth: MultipleusersallarerequiredtouseNPPremierEdition
Reality: YoucanmixProandPremieronthesamenetwork
Recommendation:BuyPremierNPfordevelopmentandProforeveryoneelse
Myth: DesignationsonHomePagearehelpfuly
Reality: Sometimesthedesignationsaremisleading
Examples:Examples:NonprofitMenu Donations
Customers/Donors
Pro/PremierMenu SalesReceipt
Customer Center Customers/Donors
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CustomerCenter
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Myth vs RealityMyth vs. Reality
OnerealbenefitofQuickBooksNonprofitEdition
Explanations helpensureproperuseofaccounts
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Myth vs RealityMyth vs. Reality
IncomeaccountsinUCOA
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Unique Needs of the NonprofitUnique Needs of the Nonprofit
TrackingInKindContributions
MatchingGrants
RestrictedFunds
CapitalCampaigns
ReportingVolunteerTime
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Tracking In Kind ContributionsTracking In-Kind Contributions
Addanewincomeaccount
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Record In Kind ContributionsRecord In-Kind Contributions
MakeaGeneralJournalEntry:
1. Enterthedateofthecontribution
2. ClicktheAccountdropdownlistandchoosetheappropriateaccountfortheitemasifyouactuallypurchasedit(i.e.OfficeSuppliesforsupplies)andenter the fair market value in the debit column enter the name of theenterthefairmarketvalueinthedebitcolumn,enterthenameofthedonor,andchoosetheappropriateclass
3. OnthesecondlineclicktheAccountdropdownlistandchooseInKindContribution,enterthefairmarketvalueofthecontributediteminthecreditcolumn
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Matching GrantsMatching Grants
AddShipViafieldtosalesFormsForms
Rename MatchFor
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Matching GrantsMatching Grants
AddanewshippingmethodusingGrantnameandamountneeded for matching fundsneededformatchingfunds
RecorddonationsusingpropersalesformandindicatewhothematchwasforintheboxunderMatchFor
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Matching GrantsMatching Grants
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Restricted FundsRestricted Funds
TwoBasicSituations
A) Grantorgivesthedollarsfirst,thenrequestsdetailofhowfundswerespent
B) Grantisgivenonlyaftermoneyisspentanda) g y y preimbursementisrequested
Thesetupandtrackingprocedureswillbethesameeitherway
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Restricted FundsRestricted Funds
AddRestrictedGrantsasacustomertype
Setup Grantor as aSetupGrantorasaCustomerwithRestricted
Grantasthecustomertype
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Restricted FundsRestricted Funds
Reportwillshowamountoffundsreceivedandhowtheyweredisbursed If there is a loss that is the amount to submit fordisbursed.Ifthereisaloss,thatistheamounttosubmitforreimbursementifthatwasthetypeofgrant.
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Restricted FundsRestricted Funds
Common question: Whatistheamountoftherestrictionthatneedstobetakenoutofrestrictedfundsfortheyear?
Answer: SummaryreportshowstotalRestrictedFundsreceived,amountsspentandbalanceinRestrictedFundsthatshouldbeonpbalancesheet.
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Capital CampaignsCapital Campaigns
StrategyforTrackingContributionsandExpenditures
SetupClass CapitalCampaignorDesignatedproject
SetupAccounts OtherIncomeaccountsnamedCapitalCampaignIncomeandCapitalCampaignExpensewithappropriatesubaccounts
SetupItems PointtoOtherIncomeaccounts
RecordingPledges Customizeinvoiceform,useclassandappropriateitems
RecordingContributions Customizesalesreceipt,useclassandappropriateg p , pp pitems
RecordingExpenses EnterbillsorwritechecksusingCapitalCampaignExpenseaccount
YearEndAdjustment CreateanewFixedAssetAccountforthecapitalasset;createanewOtherIncomeaccount(CapitalizedCosts)asasubaccountofCapitalCampaignExpense;makeajournalentrytotransfercoststoassetaccount
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Tracking Volunteer TimeTracking Volunteer Time
1. Create a vendor type for Volunteers1.CreateavendortypeforVolunteers
2 Add name to2.AddnametoVendor list
3.Createserviceitems
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Tracking Volunteer TimeTracking Volunteer Time
EntertimethroughWeeklyTimesheet/SingleActivity
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Reporting Volunteer TimeReporting Volunteer Time
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Board Reporting Made EasyBoard Reporting Made Easy
Makealistofthereportsyoucreateandwhoyousendthemto.
1. Budgetvs.ActualforMonthandYTD BOD
2. Income&ExpensebyProgram BOD/ED
3 Income & Expense by Month BOD3. Income&ExpensebyMonth BOD
4. StatementofFinancialPosition BOD
5. PledgesOutstanding BOD/ED
6. BillsPayable BOD/ED
7. Disbursements/Month BOD/ED
CreateaMemorizedReportGroupforeachreportingentity
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Board Reporting Made EasyBoard Reporting Made Easy
Usestandardreports
Addcolumns
FilterbyClass;Filter by Class;CustomerType;VendorType;ShippingMethod;etc
Changeheadings
Addfooters
Removecents
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How to Contact GrowthForceHow to Contact GrowthForce
Stephen King Vince PintoPresident2813126502(direct)[email protected]
BusinessDevelopment2813126538(direct)[email protected]
GrowthForce LLC800Rockmead,Suite200Kingwood,TX77345
2813582007(main)281 358 4120 (f )2813584120(fax)
PowerPointavailableat:http://www growthforce com/webinar html
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http://www.growthforce.com/webinar.html
TheNew990
The New The New IRS Form 990
Tene Thomas, CPA Principal, Tax ServicesMcConnell & Jones LLPMcConnell & Jones LLP
TheNew990
Form 990 Tax Returns for NonprofitsForm 990 Tax Returns for Nonprofits
TheNewIRSForm990
ImpactofChange
Recommendations
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TheNew990
WeneededaForm990thatreflectsthe
waythisgrowingsectoroperates
in the 21st century.inthe21 century.
StevenMiller,Commissioner
IRSTaxExemptandGovernmentEntitiesDivision
TheNew990
2008 Form 990: IRS Perspective 2008 Form 990: IRS Perspective
WhattheIRSdid:
ReleasedtheformDecember2007(noinstructions)
Effectivefor2008taxyears(2009filings)forcalendarandfiscalyearendtaxpayers
WhytheIRSdidit:
Currentformisoutofdateandinadequatetoserveqtransparencyandtaxcomplianceneedslastmajorrevisionwas1979
Doesnotportraywhatorganizationdoes
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TheNew990
New 990 OverviewNew 990 Overview
TheredesignofForm990isbasedonthreecoregoals:
1. Enhancing transparency toprovidetheIRSandthepublicwitharealisticpictureoftheorganization.
2. Promoting compliance byaccuratelyreflectingtheorganizationsoperationssotheIRSmayefficientlyassesstheriskofnoncompliancenoncompliance.
3. Minimizing the burden onfilingorganizations.
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TheNew990
Phase in periodPhase-in period
AnorganizationcanchoosetofileForm990EZifitsatisfiesboththegross receipts and total assets tests listed below:grossreceiptsandtotalassetstestslistedbelow:
TaxYear GrossReceipts TotalAssets
2008 > $25k and < $1 million less than $2 5 million2008 >$25kand$25kand$50kand
TheNew990
Key Aspects of the New 990Key Aspects of the New 990
Focusonactivities,notjustnumbers
NewSummarypage snapshotoftheorganization Mission
Governance
KeyFinancials,operationandcompensationinformation
Checklist of schedules completion of Trigger Questions Checklistofschedules completionof TriggerQuestions
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TheNew990
990 The Form and Schedules990 The Form and Schedules
Totalnumberofpagesi l d d i h fincludedinthecoreformandallschedules 80!!!!
Mostorganizationswillendupfillinganadditionalfiveschedules!
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TheNew990
Components of the Core Form Components of the Core Form
PartI Summary
PartII SignatureBlock
PartIII ProgramServicesAccomplishments
P t IV Ch kli t f
