Recording donations in quickbooks
In quickbooks there is a feature where you can add a donation for any charitable trust where it needs to be set up in quickbooks itself. This helps in saving tax and if the setup is not been installed then this will be done by adding a new account to the quickbooks.
How to donate service and product that is sold in quickbooks generally:
- If the donation effects the sales report this should be consulted with the accountant for your company.
- Creation of a Invoice is must through which the income would be saved and recorded.
- Always make a new account for the donations in quickbooks to record.
- In charts of account you will have to add a new donation and the name it before clicking on finish option.
- Through the list of product and services select services to the customers for the field of account to be set as donation and save it.
- In quick books go the option of plus sign icon and the receive payment the time,expenses and unbilled charges and credits are recorded in balance due then saved.
While this is recorded in accounting for a new donation company it helps the vendors to get a rebate in terms of paying the charges and the contribution in tax less. All the cash donations are recorded in quickbooks and the account has the inventories of donation to justify the company with all the expenses and applications.
If you are willing to donate the cash, then make sure that the charitable organisation is setup in QuickBooks Online in the form of either supplier or vendor. Once the donation is done, get it recorded as a bill, cheque and payment. When the bill or cheque is entered for the donation, give extra attention to expense account that is selected by you, using drop-down arrow present below the form of account.
There should be a dedicated and separate account for the contributions of tax-deductible, which shouldn’t be used to track other expenses. It will help your tax preparatory and accountants and make the things convenient for them.
In case you are not having an expense account reserved for donations, then click on Add New then go to Account drop-down arrow and from their add the one.
Donation of products and services that are sell by you usually
In case the amount that you are planning to donate as a contribution is affecting the amount of the gross sales, then get in touch with the accountant of your company to make this entry.
- Get the invoice created for the service or product, in order to get the income recorded. Make sure you do not forget this step. Or else your balances will turn to be off as other steps are performed
- Get the account created for the charitable contributions
- Then create the product or service item that is called as Charitable Contributions
- Then ensure that credit memo is issued to the customer
- Check and verify that Adjustment Notes/Credit Note, Credit Memo, are applied in the invoice
Need Professional Help?
Each of the steps mentioned above contains lots of details, to get the same you can get in touch with QuickBooks Technical Support team. QuickBooks tech support helpdesk is readily available at your service. Our QuickBooks tech support team has the solution for all QuickBooks issues. You can call our QuickBooks helpline help team by dialing out smbaccountants.com.