Bookkeeping Workshop

I attended a quickbooks bookkeeping workshop by Karen Schiller at Compasspoint www.compasspoint.org recently, it was very helpful.

Here are some helpful tips that I took away from the workshop:

1. When recording classes in Quickbooks you don’t have to record classes with asset or liability accounts.

2. Membership is a support service defined by the IRS.

3. Administration (or Management and General) expenses include: Bank Charges, Legal Fees, Accounting Fees, General overview of time spend managing the organization, and time spent negotiating govt. contracts.

<p class="MsoNormal">4. Direct costs are those costs that are directly attributable to a program or support service, for example, supplies purchased specifically for Aspiration's eAdvocacy training.<br /><br /> 5. Indirect cost (these are the costs that are recorded in the shared costs class and then are allocated into program and support expenses) examples include: utilities, rent, copier, and supplies.<br /> <br /> 6. Do report fundraising costs because the IRS looks at this.<br /> <br /> 7. There are several methods for allocating shared costs.&nbsp; <br /> &nbsp; a. Bottom Line allocation method-where shared costs are lumped together then allocated across program and support expenses.<br />&nbsp; b. Case by Case allocation method &ndash; where shared costs are allocated separately on each expense line. </p> <p class="MsoNormal">8. When funder states they will pay a % of indirect costs they usually mean they will pay a % of admin costs not actually shared costs.<br /> <br /> 9. An organization can receive a contribution in the form of office space/electricity/telephones, where the donor still generally owns the asset. This should be recorded as income when the contribution is received and expense when the utilities or building is used. <br /> <br /> 10. At the end of each fiscal year break out Restricted and Unrestricted contributions. However be tracking Restricted and Unrestricted contributions on a monthly basis. <br /> <br /> 11. A Newsletter is totally a fundraising cost unless it meets some program requirements or criteria.<br />&nbsp; a. The audience must be selected for the newsletter not because they can give money, but because they can participate and benefit from the services.<br />&nbsp; b. The action in the newsletter should benefit the recipient and/or society. <br /> <br /> 12. For event sponsors, if they are giving a lot more than getting back they are considered they are considered contributors.<br /> <br /> 13. For event attendees, only a percentage of the event ticket is tax deductible. For example-for an event that has a meal 70% goes to the cost of the meal, and 30% is a donation.<br /> <br /> 14. For reciprocal transactions where each party receives assets of approximately equal value. For example advertising income earned from the placement of advertisements in the monthly journal published by the organization.<br /> <br /> 15. Registration fees are recorded as deferred income until event occurs.<br /> <br /> 16. Don&rsquo;t forget to do year end journal entries for net assets &shy;and separate out Restricted and Unrestricted Contributions in the balance sheet.</p>