Here you will find all the notes that I wanted to include in The Guide but didn’t want cluttering up the more straightforward information.

Reports

The names of the two main reports are different for nonprofits. If you are familiar with for-profit financials, you may already know about the Balance sheet and Income Statement. The format is pretty much the same for nonprofits, but they are called something different.

• Balance Sheet = Statement of Financial Position
• Profit & Loss / Income Statement = Statement of Activity

One of the main differences you will find is in the Statement of Financial Position, where the Equity section of the Balance Sheet becomes Net Assets in the Statement of Financial Position. This is because there are no owners of a nonprofit, so no equity.

Pledges

Pledges and invoices are the same thing in QBO. When you switch the business type to Nonprofit, it changes the name of invoices to pledges. Aside from that, they are exactly the same and can be used in the same way. If you’re requesting money from someone, use a pledge.