You collected funds for your mission fund initiatives. It is now time to disburse the funds to all of the wonderful charities your ministry supports around the globe. How do you record all the expenses in QuickBooks Online?
In this tutorial, I will show you how to record your ministry expenses for a restricted fund in QuickBooks Online continuing with my four-part blog series.
If you missed part one of this series, you can check out how to record restricted revenue into restriction.
To get started with recording your expenses, watch the video, and follow along with the guide.
Record restricted fund expenses
Record your expenses normally and apply the general fund class, customer/restricted fund project, and location to the transactions.
Click the +New icon and select expense or check under the vendors' column.
Payee = select the appropriate vendor name
Bank Account = select your bank account
Payment Date = enter the payment date
Check/Ref No = enter the check number or confirmation number
Category = select the appropriate expense account
Description = enter the payment purpose
Amount = enter the amount paid
Customer = customer/restricted fund project
Class = select the General Fund class
Location = 1. Without Donor Restrictions (optional)
Memo = repeat the same description from above
Attachments = add a copy of invoice or bill
Click save and close
Impact on the financial statements: the expense account increases and the bank account asset account decreases.
Don’t forget to subscribe to our blog to get notified of part 3 of this series on how to record the release of used restricted funds out of restriction.
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Do you have questions about using QuickBooks Online to run your nonprofit or church? Contact me - I am happy to help!
