Transitioning Fathers On A Mission (FOAM) to GAAP-aligned accounting within QuickBooks Online (QBO) involves a series of structured steps. Below is a comprehensive guide, complete with verified video tutorials to assist in this process.
3.1 Prepare & Review Current Data
1. Extract Current Chart of Accounts (COA) & General Ledger (GL):
• Export Existing Data: o In QBO, navigate to the Chart of Accounts . o Click on the Gear Icon and select Export Data . o Choose to export both the COA and GL for thorough review. • Identify Issues: o Examine the exported data to spot incomplete, duplicated, or misclassified accounts. 2. Identify Nonprofit-Specific Requirements:
Net Asset Classification:
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o Ensure net assets are categorized into: § Without Donor Restrictions § With Donor Restrictions
• Revenue Accounts: o Set up accounts for various funding sources: § Grants § Donations § Program Fees • Expense Accounts: o Create accounts reflecting: § Program Services § Management & General § Fundraising Activities
3. Clean & Consolidate:
• Merge Redundant Accounts: o Combine duplicate accounts to streamline the COA. • Assign Account Numbers: o Implement a numbering system for better organization: § 1000–1999: Assets § 2000–2999: Liabilities § 3000–3999: Net Assets
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