What I Learned Using QuickBooks with Churches (and Other Nonprofits)

I started using QuickBooks Online in 2005 to manage the finances of a small nonprofit. Soon afterward, I decided to help my church convert to QuickBooks.  

At the time, I was serving as the church treasurer and using Church Windows software housed on a PC in the church’s onsite office. I had two small children—and oversaw tracking all income, paying all the bills and processing payroll for a team of 15. QuickBooks Online was easy to learn, not extremely expensive and was cloud-based, so it could be used anywhere!  

It worked so well for the other nonprofit I was helping, I thought: Why not use it to track the church’s finances, cut down on the commute, and spend more time focusing on raising our children? 

Since those early days, QuickBooks has evolved and grown to be a robust solution that I happily recommend to all my church and nonprofit clients. Over the years, I have had the privilege of using QuickBooks as the central tool for managing the financial needs of various church and nonprofit clients, from the school PTA to much larger organizations.  

This experience has revealed valuable insights, practical tips, and essential resources for bookkeepers and accountants who want to make the most of QuickBooks Online while helping their nonprofit clients run smoothly and stay focused on their goals.  

The learning curve 

Here is what I have learned along the way about using QuickBooks with churches and other nonprofits. 

• Check out TechSoup and purchase your QuickBooks Online subscription (and other software, hardware, training, furniture, etc.) from them. It's free and easy to join—just complete a short application to verify your 501(c)3 status and start shopping!  
  
  TechSoup receives donated products from tons of the companies you already use like Adobe, ADP, Amazon, Docusign, Dropbox, HP, Intuit, Microsoft, Shutterstock, Wix, Zoom and many, many others. It would be foolish not to at least check it out. 
• Join QuickBooks for Nonprofits on Facebook. It's an amazing resource filled with knowledgeable, kind and helpful people. 
  
  In addition to the helpful Q&A that happens daily, my favorite part of this group is the Files section where users upload helpful information like journal entry cheat sheets, budgeting templates, and my all-time favorite: founder Megan Tarnow’s Data File Structure Template—a chart of accounts template that follows the format of IRS Form 990.  
  
  Set up your nonprofit books following this format and watch your auditor do a happy dance! 
  
  

  BONUS! Megan hosts a monthly First Friday Lunch & Learn on both Facebook and YouTube that covers a variety of topics related to nonprofit bookkeeping and accounting. 

• Get to know generally accepted accounting principles (GAAP). Don't simply record transactions from the bank feed. Nonprofits are supposed to follow GAAP, which means you need to record A/R (invoices and sales receipts) and A/P (bills and bill payments) properly.  
   
  Use the built-in sales and expense modules and transaction types–invoices and sales receipts for income and bills and expenses for expenses—so your transactions show up in all the right places for the most robust reporting options. 
• QuickBooks Online is not a Customer Relationship Management (CRM) platform. It wasn't built for that, and there are so many others (at all price points) to choose from—many of them integrate quite well with QuickBooks, so you can still easily track the income, but not at CRM-level detail.  
   
  You don't want to clog up your accounting software with unnecessary information that would be better tracked elsewhere. Just as I advise not to use QuickBooks as your CRM, the reverse is also true—don't be swayed into thinking your CRM's accounting module will work just fine. Use accounting software for accounting and CRM for CRM.  
  
  A smart handyman uses the proper tools for the job (hammers are for nails, screwdrivers are for screws); and a smart bookkeeper does the same. (See #1 above and check out TechSoup.org for discounts on CRMs.) 
• QuickBooks is very versatile and integrates so well with so many other tools/apps you use for other parts of your organization.  
   
  If you need QuickBooks to do something more than it's capable of on its own, search QuickBooks apps to find an application that integrates with QuickBooks and does that extra thing you need. Or try Zapier.com to connect an app to QuickBooks Online. With Apps.com and Zapier the possibilities are virtually endless! 
• Understand that many nonprofits—especially small ones—need lots of help with operations. It's likely that your bookkeeping/accounting engagement will morph into helping them manage other pieces of their operations (insurance, HR, legal/bylaws, policies and procedures). Be prepared for this.  
   
  Develop partnerships with insurance, HR and other professionals so you can refer your clients to them. Create your own policy and procedure template that you can add on to your service offerings. These are just a couple of the ways you can add advisory services to your practice; get creative and work with your trusted colleagues to brainstorm others.  
   
  Chances are if one nonprofit has a need, there are others out there with the same ones, and you might become their go-to expert connector. 
• Board leadership (such as the treasurer, who you'll likely work closely with) can change frequently and needs guidance, procedures and institutional knowledge (another opportunity to act as their trusted advisor).
  
  You are often the person who knows the most about the "business" aspect of running a nonprofit. Use your expertise to help nonprofit leadership understand what needs to be done and when. Collaborate with them so they understand who is responsible for which duties and how they can be handled most accurately and efficiently. 
• You are the QuickBooks expert—remember this when staff or board members tell you, "But we've always done it this way," in response to your recommendations for QuickBooks best practices. 

Tools in the toolbox 

Working with churches and nonprofits takes more than just knowing your way around the books —it’s about helping these organizations succeed by sharing your knowledge and guiding them in the right direction.  

When you understand how to make the most of QuickBooks’ features, you’re not only giving them the solid financial footing they need but also freeing up their time and energy to focus on what they are passionate about: the projects and programs that make their organization stand out.  

Between the resources available on TechSoup, the supportive QuickBooks for Nonprofits Facebook group, and all the integrations that can expand QuickBooks’ capabilities, there’s no shortage of tools to help nonprofits thrive.  

Remember, your expertise in QuickBooks Online is more than just a skill—it’s a valuable resource that can make a real difference in the way these organizations operate and grow.