======================================================================================TO: Interested Small Ministries FROM: Retired Auditor-CPA - Jim Bramer
RE: The "FINFAX" Accounting System DATE: June 2008======================================================================================
Mission Statement (02)
When you go HERE you will find more details about this "FINFAX" accounting system which is designed to readily provide the needed up-to-date "Financial Facts" for Christ-Centered Ministries. These entities are what we often identify as "Mom-Pop" Ministries since they usually handles less than $99,999 per annum. But it is also available for any "Small Ministries" that normally handle less than $500,000 per annum.
The overall target for the use of this "FINFAX" accounting system are any small Non-Church outreach entity (like independent non-denominational Mission Organizations) who serves the general public. But it is also available to Smaller Churches who are subject to their local membership.These Ministries MUST be good stewards of their finances as they cope with such matters as the following:
>> They manage monies that are either designated (restricted ) or undesignated (non restricted ) by their Donors or by their "Board of Leadership" . Please go HERE and find information about accounting for such specialized monies, etc.
>> They MUST function within their available finance boundaries --- this "FINFAX" system is designed to provide SPENDING CONTROLS. Or they can only spend what comes into specific operating departments. They have no internal debt (they do not borrow from any of their own areas) plus they have no external debt (especially by way of available Plastic or Credit Card sources) . Please Go Here and learn more about this FINFAX" system via what Brad and Alex have to offer about all of this.
>> In making full use of the FINFAX" system, these Ministries efficiently use contemporary resources found by utilizing the Internet via laptops (plus fast connections) and, of course, the appropriate computer software and related resources. I also trust you find of value the comments found HERE about "Why " you have money and not necessarily "Where" you have it deposited.This "FINFAX" accounting system includes the following features - - - -
The BuxBox Method - (03)
A> As explained within this BuxBox Method link contents, this accounting method places money into pre-approved operating department "BuxBoxes" within this "FINFAX" system. Then you know weekly per the report samples below, via this alternative budget process, whether or not you have a "BuxBox" balance to spend during the following week. If there is no balance in that "BuxBox" then no can spend -- it is as simple as that !
This "FINFAX" accounting system can be set up to structurally integrate and provide the needed, "Functional Expense " information. This Functional Expense information is used for year end Generally Accepted Accounting Principles - GAAP compliant financial reports -- plus the information for filing annual forms 990 required by the IRS, etc.
Appropriate Use of Plastic and Online Payments - (05)
B> For security and complete record keeping purposes, you buy all you can using Plastic ( Debit or Credit Cards ). Preferable you use the Debit Card option (since it is the same as writing a check) so you do not have to go through certain processes required when you buy using Credit Cards.
If you use the Credit Card option (many vendors do not give you a Debit Card option) you do NOT have a debt issue since you weekly go online and pay off your Credit Card balance.. Ask us about the use of SCRIP Plastic (like gift cards, etc.) for prepaid discounted internal purchases.
Further, you make full use of available Online Payment resources out there as you go to a repetitive vendor's web site (like utilities, etc.) and give them permission to either charge your Bank Account (preferably) or your Plastic account. The vendor usually informs you by Email of the amount and when it will or has happened. Ask us how to make Online Payments if they do not have an option via their web site.After the Fact (ATF) Features (06)
C> Financial transactions at your Financial Institutions can be electronically downloaded directly to the overall "FINFAX" system -- and then you manually move these transactions to the appropriate "BuxBox".
Or you make full use of the ATF (After the Fact ) process -- which means that there is no need for you to manually (or have your computer accounting system write and post them, etc.) enter these transactions into your FINFAX" accounting system and then reconcile them to the external Bank or Plastic statements, etc. Since you have a weekly processing and reporting thrust, you try to buy things, or make a deposit, at the time in your week so that unprocessed transactions (deposits in transit or outstanding checks ) are no big deal.D> You make maximum Online use of remote HLPRS or HOMERS, who function either 'across the Street ' or 'across the Country ', as they assist you to effectively use this "FINFAX" system -- both during the year and at your end of the year.
Evangelical Council for Financial Accountability - ECFA (08)
E> Small Christ-Centered Ministries MUST be the appropriate steward of their finances. All of this "FINFAX" system contributes to your CPA-Auditor readily providing you with the necessary annual "Compilation" report ( the least expensive annual relationship with a CPA-Auditor firm ) so that you can be an "Affiliated " member of ECFA. ECFA's fees for a Small Ministries for this type of membership is $350.00 to join and $500.00 per calendar year . Being such a member tells all interested parties that your Ministry does, in fact, handle their finances as you should.
There are also other educational and inspirational benefits of this membership.F> This "FINFAX" system provides you with the essential BuxBox information for the necessary Spending Controls. Please go below and view samples of such reports (Charts).
Click Here for the weekly "Point in Time" "BuxBox Balance" report
Click Here for the periodic "Point in Time" Photo report
Click Here for the periodic "Period of Time" Video - "BuxBox Activity" report
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Feel free to contact us at JIm@bcidot.org if you have any comments or questions about any of this. Remember -- It is our desire to be "Your Servant for Jesus Sake:" Thank you. II Corinthians 4:5B. This 0300-01 document was updated last on September 12, 2008
Email Address: Jim@bcidot.org - Phone: (559) 298-5507 --
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