Accountants can record Donations to Charitable Institutions or government agencies, like donation when Ondoy happened last year or to Pakistan's deadliest flood that killed 1,500 people in all versions of Quickbooks.
Tax implications will not be discussed in this article whether is Income Tax deductible or not but more on how we should enter the transaction as it occur in Quickbooks.
Here are the type of donations that a company may encounter:
- Cash Donations
- Donation of Inventory Items
- Donation of Non-Inventory Items
- Donations of Fixed Assets
All four types of donations can be recorded in Quickbooks. Whether the company donated cash to DSWD for the Typhoon Ondoy victims or whether the company donated Food and Shelter for Pakistan's people who suffered from flood, everything can be taken up in Quickbooks.
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