How to Record Donations to LLCs in QuickBooks
If your company makes donations to other organizations, such as LLCs, you need to keep track of those donations for tax purposes. Managing your company finances in QuickBooks allows you to keep track of any donations the business makes. By entering the donations into the financial software, you can easily see how much your business has donated at the end of the tax year. If you do not manage the financial records yourself, you can instruct your accountant to enter the donations for you.
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Instructions
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Add each LLC as a new vendor by clicking on “Vendor Center” button from the left panel on the QuickBooks Navigator screen and then “New Vendor.” Click “Next” to enter another vendor or “OK” to save and close the screen. The QuickBooks Navigator screen is the main screen that appears when you open the QuickBooks software. Each new vendor that is entered is saved to the vendor list, which can be accessed at any time by clicking on "Vendor List" after clicking "Vendor Center."
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Click on “Add New” from the drop-down arrow by “Account” to create a new general ledger account for charitable contributions, if you do not already have one set up. It can simply be named "Charitable Contributions" so it is easy to find. You should create this account so you can easily identify all donations at any given time simply by looking only at this account.
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Record the donation check by clicking on the "Banking" button on the left panel of the screen or the "Banking" menu at the top of the screen. Select the “Money Out” menu option and then “Write Checks.” When you do this, the image of a check appears on the screen. Use the drop-down menu by "Bank Account" to select your charitable contributions account. Use the drop-down by "Pay To The Order Of" to select the organization. Enter the donation amount in the field labeled "Account" and click “Save and Close.” You must do this for each donation you make to each LLC. Saving the check records the donation in the general ledger.
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