If im getting money from grants do i need to make a new heading for this, as purchases will be coming out of this money?

Hi becky43

You will have to create an equity account within the chart of accounts; accounting > chart of accounts New > in the account type field select Equity > in the detail type field select paid in capital or surplus > give your account a name e.g. grants > save and close. Any deposits/grants will be allocated to the equity account. Any purchases will be created in the usual manner as an expense or bill and selecting the item or category relating to what you are purchasing.