Managing Edward Jones Investments in QuickBooks Online: A Guide for Nonprofits

Navigating the complexities of investment tracking can be challenging, especially for small nonprofit organizations. If your organization has transitioned from traditional banking to managing investment accounts, specifically with Edward Jones, and uses QuickBooks Online (QBO) for financial tracking, you might find yourself in a bit of a bind. Here’s how to effectively manage your Edward Jones portfolio using QBO, even though it might not have been initially designed for such purposes.

Understanding the Challenge

For many nonprofits, simplifying financial management is a priority. Recently, my organization decided to close our traditional savings accounts in favor of short-term and long-term investment accounts with Edward Jones, mistakenly thinking we were opting for a straightforward money market account. This decision led to the creation of two Edward Jones accounts, filled with multiple stock transactions, and left us without an effective method for tracking these investments.

Setting Up Your Chart of Accounts

To effectively monitor your investments, it is crucial to set up a comprehensive chart of accounts within QBO. Based on a resource I found previously, I have created subaccounts for different asset types, including:

• Cash Subaccount: For tracking available cash.
• Securities Subaccount: To record investment purchases and sales.
• Unrealized Gains/Losses Subaccount: To keep track of your asset performance.
• Interest Subaccount: For any interest income generated from investments.

Adjusting Your Record-Keeping Process

Over the past few months, I realized that I may not be using these accounts to their full potential. To ensure accurate tracking, here’s how I recommend handling your transactions:

1. Purchases and Sales: Record any line item purchases and sales as transfers between your main bank account and the securities subaccount. This will help reflect where funds are moving.

2. Interest Earnings: Log any interest accrued from your investments into the cash subaccount. This will keep your liquid assets updated.

3. Unrealized Gains/Losses: Create a journal entry for any unrealized gains or losses. This helps you visualize the value of your investments without having to sell.

Implementing these practices should provide a clearer view of your organization’s financial standing and ensure accurate reconciliation of your main bank account while keeping track of subaccounts.

Ongoing Management

As you continue to record your activity monthly, be mindful of how each transaction affects both your