Tracking GIA Funding using quickbooks Kristy J. Browning, Business Manager Cabell County Public Library

You are already Using quickbooks to track income/expenses If you are already using QuickBooks to track your income and expenses, this slide show will show you how to: Find and Edit the Class List in QuickBooks Classify Income Classify Expenses Generate a Profit & Loss Statement by Class Re- and Un- Classify Income and Expenses Submit a report to the Library Commission as per the requirements starting with the 2018 FY This presentation will be especially helpful if you’re already using Quickbooks to track income and expenses at your library. If you’re not using Quickbooks, I can take more specific questions from you after this brief presentation. So, I’ll assume you’re already using Quickbooks to track income like…. And expenses like….. We are just going to expand that by classifying your expenses. Here are three sample classifications you can use, Admin, Fundraising, and specific grants (such as GIA).

How to find and edit the class list If you haven’t used class lists before, when you click on the “Lists” drop down menu, class lists won’t be there. You have to turn on class lists in preferences

How to find and edit the class list So, go to Edit, Preferences… Go to Edit  Preferences  Accounting and click the “Use class tracking for transactions”. If you leave “Prompt to assign classes” checked, QuickBooks will ask you every time you enter income or expenses if you’d like to classify them.

How to find and edit the class list You will now see the Class List under your Lists drop down menu. Once you’ve opened your Class List, you can right click on the screen to add, delete or modify existing classes. You can utilize as many or as few lists as you’d like, unclassified income and expenses will end up in a class of their own, called Unclassified. So now if you go to lists, you’ll see your class list there.

Think of Classes as “Buckets” GIA Grant A Grant B Unclassified How many buckets do you need for your library? You can add and subtract buckets at any time during the year – any income or expenses previously classified to the deleted class will go into the unclassified bucket You do not need to create a class for unclassified expenses – it already exists as soon as you turn on class tracking in QuickBooks, though it will not show up in your class list

Allowable Expenses for GIA When deciding what expenses to classify, please note the allowable expenses for GIA. Tip: Consider looking at the current or a previous fiscal year and deciding which expenses would work.

Open a Profit & Loss Statement from your current or a previous fiscal year, and find a line item (or 2 or 3 ) that would fill your GIA bucket. In the example here, Payroll Expenses exceed Grants In Aid, so I know we will be able to fill our GIA bucket with payroll expenses.

Adding income and expenses to a class When class tracking is enabled, there will be a class drop down option when you enter income and expenses. You can classify your income/expenses as you go, monthly, or quarterly. You can always edit the classification of any entry.

Profit & Loss statements by class

Your classified report should show your wvlc bucket completely full, not overflowing GIA Unclassified Total In this example, we’ve overspent our GIA class by $9,670.65 Since I’ve classified ALL payroll expenses to GIA, I will go to my last payroll expense and break it down so it completely fills my GIA bucket and the rest will go to Unclassified.

Moving/splitting income expenses between classes From your Profit & Loss by Class Report, you can double click on any line of income or expense to open it in detail. Double click again to go to the original entry to edit:

Your classified report should show your wvlc bucket completely full, not overflowing Now that we have classified only a portion of our final payroll expense to GIA, the WVLC GIA Class is completely spent and all future payroll expenses can remain unclassified.

Filtering a profit & loss by class statement From the Profit & Loss by Class report, click on Customize Report at the top In the Modify Report box, select the Filters tab across the top Choose the “Class” Filter From the Drop Down list, choose your GIA Filter Once you click “OK” the Profit & Loss statement will only show your WVLC GIA Profit & Loss. This is the report you can print and send to the WVLC

Additional notes For this example, we only classified payroll expenses to the WVLC GIA Class. You can classify any allowable expenses to this class. Since you can un-classify and reclassify expenses, QuickBooks will make it easy to fill your Grants in Aid bucket as you see fit. If you are a Service Center Library, you will have to also have to submit a report for your Services to Libraries Grant, so please note you can’t “double dip” into expenses and classify them in both places. It would be a good idea to look at a previous fiscal year and make a plan on how to classify your expenses now, so you will have an idea of how you’re going to do this.

Any Questions? Call me! Kristy J. Browning Business Manager, Cabell County Public Library 304-528-5700 To the left is a good YouTube video of a TechSoup webinar regarding QuickBooks for Non-profits. They have a good section in the beginning regarding Classes. If the link doesn’t work, click here for the video.