Charitable donations

Hi

I am new to simply accounting, and your help is greatly appreciated. My business has given donations to various local charities, how do I enter it into Simply -under purchases or General ledger and which accounts do I use if I used a cheque.

Thanks 

Parents
  • FormerMember
    FormerMember

     Hi there:  It sounds like you are using hand-written manual cheques and not printing cheques out of the Simply program, correct?  If you just want to record the transactions from your cheque stubs, you can do the entries in the General Journal.  The entry for the cheque written to the charity would be a credit to Bank and a debit to the Charitable Donations Expense account.  If you need more information than that, come back with further questions.    Rita Deering

  • in reply to FormerMember

    While what Rita says is correct, I disagree with creating a GJ entry for this. If you make the entry in the purchases/vendor module, it provides much better tracking of cheque #'s, organization name, and you can use default expense accounts. Next year, when you want to see if you have donated to the organization before, you can look at the vendor account for the details.

Reply
  • in reply to FormerMember

    While what Rita says is correct, I disagree with creating a GJ entry for this. If you make the entry in the purchases/vendor module, it provides much better tracking of cheque #'s, organization name, and you can use default expense accounts. Next year, when you want to see if you have donated to the organization before, you can look at the vendor account for the details.

Children
  • in reply to AmyGurl
    But the treatment of donation according to CRA is different, how can we address this for tax purpose?
  • in reply to Kassymoon
    If all of the funds donated to ALS challenge was from the employees, there is no tax implication for the company. Those donations were made by the individual employees who may be able to claim the donation on their personal taxes. If the company simply receives the cash and issues a cheque without matching or adding any funds it is inappropriate to claim the donation as a company expenses. If the company also contributes funds then their portion of the donation should be credited as a Charitable Donation expense - if there is no such GL account one can be created.