Summary

Currently, we track transactions by Account, Class, and Project. We also have Client (Project is linked to Client) and Invoice (linked to Client). Expenses have a Payee and Memo (free text). Category for Expense appears to be Account.

However, in the transactions in QB, I'm not seeing that every transaction clearly links to all of these.

Changes we need to make:

• Have an Account that is "Net Assets Released From Restricted." Periodically (recommend no more often than quarterly), we can have a journal entry that moves net assets, with explanation in the Memo and documentation in our Drive. Ideally we use QB ability to attach a document to a transaction. In 2019, we made some updates, documented in this spreadsheet.

• Review the Chart of Accounts, Classes and Projects to make them more meaningful. Add Class to Project and ask that every Invoice be connected to Project(s) and corresponding Class(es). If multiple for one Invoice, then bookkeepers can make that adjustment if it's not already covered in the Invoice.

• Determine if we can get a Report that summarizes income by Project and Client.

• Decide how we want to attribute payroll costs to projects.

Notes on Changes

The IRS 990EZ asks for expenses in the following categories:

• Line 10: Grants and similar amounts paid. Sometimes we give discounts to organizations; we have been including those (deducting from program income) in the Income section and not putting them here. However, we could consider moving them to this location.

• Line 11: Benefits paid to or for members. We have not been reporting any expenses here.

• Line 12: Salaries, other compensation, and employee benefits. Here we include payroll taxes, worker's compensation insurance.

• Line 13: Professional fees and other payments to independent contractors. Here we include all 1099 contractor payments.

• Line 14: Occupancy, rent, utilities and maintenance. We have not been reporting any expenses here; our space has been donated by Barb and Dave.

• Line 15: Printing, publications, postage, and shipping. Here we have been including the cost of printer cartridges.

• Line 16: Other expenses (described by category with totals in Schedule O). Everything else goes here, and is summarized based on our Chart of Accounts.