How to Track Grants in QuickBooks Online Using Customers

Most nonprofits are leaving grant money on the table because they can not track it right. Here is the good news. QuickBooks Online can help you fix that. And you do not need a big accounting team to do it.

Here is how to track grants using Customers in QuickBooks Online:

1. Turn on the Customer Tracking Feature - Go to Settings. Click Account and Settings. Click Advanced. Turn on Categories and make sure class tracking is on. This helps you separate each grant.

2. Set Up Each Grant as a Customer - Go to the Sales menu. Click Customers. Click New Customer. Name the customer after the grant. For example XYZ Foundation Grant 2024. Each grant gets its own customer profile.

3. Add Key Grant Details - Inside the customer profile write in the grant amount, the start date, and the end date. You can use the notes section to drop in any special rules that come with the grant.

4. Code Every Transaction to the Right Grant - When you record income or expenses, link them to the right grant customer. This keeps all the money for that grant in one place.

5. Run a Report by Customer - Go to Reports. Search for Income by Customer. Run it. You will now see exactly how much money came in and went out for each grant. This makes reporting to your funders so much easier.

6. Check Your Numbers Every Month - Do not wait until the end of the year. Look at your grant reports every month. Catch problems early before they become big issues.

Tracking grants the right way keeps you ready for audits, funder reports, and board meetings at any time.

If this feels like a lot to manage, that is what a Fractional Controller does for you. At Revamp Your Finances LLC we help nonprofits set up clean systems so grant tracking is never stressful again. Want to learn more? Visit us or send a message. We would love to help your nonprofit stay on top of every dollar.