I manage the accounts of a small charity on Quickfile, which works well.
However, we receive some donations that are ‘restricted’ - that is, may only be spent on specific projects. I have created a new nominal code for them, which means that the show up in the ‘Profit & Loss’ report as distinct items. All fine.
But how do I get them to show up as a sub-set of Current Assets in the Balance Sheet before the money is spent? And then debit the funds to that sub-set when it is spent?
Apologies if this has been covered elswehere.
Hi,
If not already done, create a holding/reserve account in quickfile banking section and call it something like restricted donations or so. So, when someone donates money to your charity, which is deposit into your bank account or cash account, tag it as a donation received. In the same account, create a out transaction over the same amount and tag it as a bank transfer to the holding/reserve account “restricted donations”.
Thanks, that’s helpful and I can see it sorts out the Balance Sheet nicely. It complicates doing a Bank Reconciliation somewhat, but we don’t have so many entries that will be a problem,.
Thanks again.