Tracking balances for multiple funds is most often a request of non-profit entities. It can be used by for profit companies as well if there is a reason to track certain amounts going into one bank account that the company wants earmarked for specific purposes.
While QuickBooks does not have an easy, menu-driven solution for this, there is a simple work-around.
The solution is to create subaccounts for each fund. These must be subaccounts of the main checking or other bank account where the funds are actually located.
In the above screenshot, three subaccounts have been created for the main checking account, Checking.
The balances, 1500, 2510, and 2500, are included in the balance showing for the Checking account, $53,479.10.
The balances in the ‘fund’ accounts result from transactions using the subaccount rather than the main checking account. In the sample QuickBooks file, there is one deposit in each fund.
The arrow in the screenshot shows the “Deposit to” bank account. Note that the subaccount Building Fund has been selected. It is important to be sure that all funds going in and out of the ‘fund’ designate the correct bank account to use.
A check written out of the fund would need to be posted to the correct subaccount as well.
A register can be viewed of only the subaccount selected, rather than the entire bank account.
When it comes time to reconcile, simply choose the main bank account. All transactions, including those from all the subaccounts will be there.
Those transactions highlighted in the above screenshot are transactions made to the three subaccounts. Since they are shown here, they can be reconciled with all other transactions from the main account as though there were no subaccounts.
One of the disadvantages to this solution is that bank deposits in QuickBooks can only be made to one bank account. So amounts being deposited to various accounts will each need a separate physical deposit.
Making the deposits physically separate when carried to the bank will make reconciliation easier. Otherwise, the person reconciling will need to match several deposits in QuickBooks to one deposit listed on the bank statement.
Hector Garcia, CPA
Certified Advanced QuickBooks ProAdvisor
12401 Orange Drive #136
Davie, FL 33330
954-414-1524
hector@garciacpa.com
2 Responses
For a nonprofit, how can i track the balance in each fund from year to year when all of the deposits are made into a single bank account?
Can I make a single deposit, then within QB transfer an amount into the Building Fund?