QuickBooks Premier for Nonprofits has a nice built-in report called Donor Contribution Summary which can be used by many nonprofits to prepare their year-end donation acknowledgement statements. However, this report includes all revenue including fees for services that aren’t tax deductible. But you can create a custom report in QuickBooks that excludes these fees. Here are the instructions:

1. Go to Reports > Custom Transaction Detail Report

2. Click on the Modify Report button

3. Select your date range, most likely “Last Fiscal Year”

4. Select Cash for report basis

5. Select Customer in the Total box

6. Check the columns you want on the report and uncheck the columns you don’t want – at the very least I recommend using Date, Name, Memo and Paid Amount

7. Select the Filters tab

8. Select Account in the Filter box, Multiple Accounts in the Account box and check off the revenue accounts you want to include on the report

9. Select the Header/Footer tab and change the report title to Donor Contribution Summary

10. If you want each donor printed on a separate page, check the box next to “Page break after each major grouping” after clicking the Print box

11. Once you have the report looking the way you want it, click on the Memorize button

About the Author:

____________________________________________________________

Ruth Perryman is the president of The QB Specialists. She is a Certified Advanced Quickbooks ProAdvisor and an Intuit Solutions Provider, with over 19 years of industry experience including 5 years as a Chief Financial Officer. She has been working with Quickbooks since 1996, and specializes in QuickBooks Enterprise and POS installations and troubleshooting. She also provides virtual controller and CFO services.

If you need additional assistance, please call our QuickBooks technical support line at 888-351-5285. The first ten minutes are absolutely free! Plus receive additional free minutes with every purchase – visit our website for more details.

- Analyze how each of your jobs us doing financially

- Identify problem jobs as early as possible

- Identify jobs that weren’t as profitable as expected

- Create better estimates for future jobs

Luckily, QuickBooks is an inexpensive program that can do powerful job costing with the data you’re already entering – as long as you set it up and use it correctly.

This is the first of a four-part series about how to use QuickBooks for job costing. Intuit, the creators of QuickBooks, has also asked me to host a free Small Business Town Hall series covering the same topics. This is your chance to get your job costing questions answered live. You can get more information here:

http://crystal.semphonic.com/quickbookscommunitycalendar/helios/events/index.php?com=detail&eID=4451

The first step to setting up QuickBooks for job costing is to set your preferences (Edit > Preferences > Company Preferences)

1. Go to Jobs & Estimates and check the box next to “Do you create estimates”. You might also want to check the box next to “Do you do progress invoicing”.

2. If you use QuickBooks for payroll, and every business doing job costing should, go to Payroll & Employees and check the box next to “Job costing, class and item tracking for paycheck expenses”

3. If you use QuickBooks for payroll, go to Time & Expenses and check the box next to “Do you track time”. If you do time & material billing, you should also check “Create invoices from a list of time and expenses”.

The second step is to setup your customer:jobs and use them on every transaction.

1. Go to the Customer Center and click on the New Customer & Job button.

2. If you are using Contractors edition, you might also want to create a customer called Overhead or Administrative for non-job expenses, so you can use the “Expenses Not Assigned to Jobs” report (only found in the contractors edition) to make sure you didn’t accidentally leave off a customer:job. If you are using classes, you might want to consider doing the same thing so you can use the Profit & Loss Unclassified report to make sure you didn’t accidentally leave off a class.

The third step is to setup items and use them on every transaction.

1. Go to Lists > Item List, click on the List button, and select New.

2. Add a new service item for every job phase you want to job cost. For subcontractors, this could be as simple as Labor and Materials. For general contractors, it could be quite lenghty: plans, site work, excavation, concrete, masonry, framing, etc. In this case, you might want to add sub-items for Labor and Materials to your items if you want to track those costs separately. This also makes it easier to report only the Labor portion of a subcontractor’s invoice on their 1099.

3. If you are a contractor with short-term jobs make sure to set up all your Service Items as two-sided, with both an expense and an income account. This doesn’t occur automatically and unfortunately it isn’t very intuitive. You need to put a check next to “This service is used in assemblies or is performed by a subcontractor or partner” for the expense box to be added to the setup screen. Contractors often use a cost of goods sold account called something like “job related costs” for job-related expenses.

4. Builders and many professional service firms have projects that span several months or more generally use a work in progress (WIP) or construction in progress (CIP) asset account because job related costs aren’t usually expensed until the project is completed. In this case, they should map the expense account to their WIP or CIP asset account.

5. Depending on your circumstances, there are also several Other Charge items you should set up. These don’t need to be two-sided:

- If you use WIP or CIP accounts, you should setup two items: (1) Transfer out of WIP – with WIP as the account and note in the description that the amount should be positive, and (2) Transfer into COS – with COS as the account and note in the description that the amount should be negative

- If you accept customer deposits or retainers, you should setup an item mapped to a current liability account. For better tracking, you should consider setting up a separate current liability account just for deposits.

- If you have customer retention or retainage, you should setup an item mapped to an accounts receivable account and a negative for the Amount (for instance, -10% if your retainage is 10%). For better tracking, you should consider setting up a separate accounts receivable account just for retainage.

About the Author:

____________________________________________________________

Ruth Perryman is the president of The QB Specialists. She is a Certified Advanced Quickbooks ProAdvisor and an Intuit Solutions Provider, with over 19 years of industry experience including 5 years as a Chief Financial Officer. She has been working with Quickbooks since 1996, and specializes in QuickBooks Enterprise and POS installations and troubleshooting. She also provides virtual controller and CFO services.

If you need additional assistance, please call our QuickBooks technical support line at 888-351-5285. The first ten minutes are absolutely free! Plus receive additional free minutes with every purchase – visit our website for more details.