What are restricted funds?
Restricted funds referred to a reserve account restraining funds that can be utilized for particular motives. It assures the donors that their donations are used in the missions they have selected.
What is the significance of the restricted fund?
The Non-profit organization uses this money for a specific objective. For instance insurance organizations, temples, churches, education sector & endowments are given some amount of money which they can spend for a purpose. You are not permitted to modify the intended objective of the restricted funds
How to track your restricted funds in QuickBooks?
There is no direct technique available to track restricted funds in QuickBooks. However, this can be achieved through classes & allotting entire restriction funds to a preferred class. Assets of a particular motive in any organization are monitor via classes. These restricted funds need unique accounting procedures.
What are the steps to switch on Class tracking?
- Navigate the Edit menu located on the top of menu bar after that scroll down the options & select preferences
- Discover the Accounting option & open the dialog box of preferences after scrolling down the listed options
- Find out at the upper section of the window and select the Use Class Tracking option
How to setup Restricted funds in QuickBooks through classes?
- For every donation set up a class
- There are mainly two funds i.e. restricted & unrestricted funds. In general funds budget,there are unrestricted funds & whereas the restricted funds are stored in another class.
- For this navigate the list option located on the upper menu bar
- After clicking on it scroll down to the options & click on Class List
- Embed the new classes to that class list
- After this, open a new screen through simultaneously holding CTRL & N key
- Give a name i.e. unrestricted fund to the first-class & hit on Ok
- Create a parent class named restricted funds & further make a sub-class if you have multiple sources from where you are getting contributions
- Select Sub-class of under Restricted fund and label it
Through Bank Account Technique:
To open an isolated bank account for every restricted fund, set up a new bank account for each project in QuickBooks.
To do this, follow the steps:
- Go to list option appearing in the menu bar
- Scroll down entire options and hit on Chart of Accounts
- Open a window named Add New Account through pressing N & CTRL button of the keyboard
- Select Bank option and hit Ok
- Give a name related to the objective
- In bank account deposit the restricted funds
- Select Make deposit tab to open the deposit screen
- Fill the detail of a donor including name, amount & income account associated with donor deposited account
- Save the changes & hit on Ok
- Now the deposit is stored
Through Sub-bank Account technique:
- Set up a sub bank account for every donation
- Navigate Chart of accounts again to create a sub-bank account
- Select the Bank option and open the new account window
- Give a name to Bank account i.e. Restricted Find
- After that select sub-account and meanwhile hit on parent account & allot that sub-account to the currently used account
- Now you can deposit the donations in that sub-account
How to reach us:
Hopefully, now you have learned about How to Setup restricted funds in QuickBooks through the aforementioned steps wrote in the blog. In case, you face any trouble while processing restricted funds or any other QuickBooks errors then call QuickBooks technical toll-free number +1800-816-6849. The team carries the years of experience to tackle each issue in less time. There is also an online chats service that is available 24*7 to provide you an instant resolution.
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