======================================================================================================TO: Interested Small Churches and Ministries FROM: Jim Bramer - Retired Auditor - CPA
RE: The Electronic "eFinFax" Accounting System ORIGINATED: June 2008=====================================================================================================
Every Christ-Centered Ministry needs an accounting system designed to keep track of where the money comes from and how it is spent --- plus, especially as set forth within this WebBOOK when you Go Here, readily answer this weekly question: "How much money is REALLY available for me to spend in my area of responsibility?" Such a system is important not only from a good stewardship perspective, but for legal purposes as well.
This "eFinFax" accounting system has been developed to help such Ministries in this regard. It enables such Ministries to efficiently use contemporary electronic resources available via the internet to help manage their financial affairs. It is a computer based accounting system designed to provide up-to-date financial information for small Churches and Mission Organizations. Generally, these are organization who receive less than $500,000 a year in income. It can also be used by such families to help them control their own personal spending.With more and more attention being given to good stewardship and financial accountability by such Ministries today (see the reference to ECFA below) , this "eFinFax" accounting system can help them deal with important financial issues that include:
>> Managing monies received to ensure that they are properly accounted for -
>> The proper handling (and spending) of designated or restricted funds, either by
donors or the leadership of the Ministry -
>> Keeping spending within authorized and available funding limits -
>> Providing easily accessible, up-to-date accounting reports when needed -
>> Gather information at year end for IRS form 990 reporting purposes, if applicable
for your Ministry.KEY FEATURES
Key Features within the "eFinFax" accounting system include the following:
The BuxBox Method:
The BuxBox spending control method is similar to the old "Envelopes" system used long before computers were invented. Under this method, discretionary money is placed (using the computer) into pre-approved BuxBoxes based on approved budgets for the various operating departments or for prioritized pre-approved purposes. Weekly reports will show the balance available in each BuxBox indicating how much money is available to spend. You can also easily arrange to provide "Functional Expense'" information as needed for GAAP (see below) and IRS form 990 reporting purposes.
Appropriate use of Plastic and Online Transactions:
In today's world, more and more financial transactions are being handled "on-line" including payroll, banking and purchasing --- this trend no doubt will certainly continue. Under the "eFinFax" accounting system, Ministries use automatic transfers, online payments, and debit cards whenever possible in order to reduce the time and costs of writing checks or using credit cards. These processes will also facilitate the prompt recording of transactions so that the current amount of available funds can be readily known.
After the Fact (ATF) Feature:
The ATF feature allows for the electronic download of financial transactions at a financial institution directly into the Ministry's "eFinFax" accounting system for posting to applicable BuxBoxes. It also eliminates the need to manually post these transaction into the "eFinFax" system. It also reduces the time necessary to reconcile such information to Bank Statements or other sources.
This system is structured so that the Ministry leaders ultimately has the needed weekly information. For example, while the Ministry may have $9,744.28 in the Banks, you will note below that “682 Operating Depart #82” has only $44.88 assigned money to spend, while the restricted Support balance at 502 for "Deputizer" Missionary Smith is $405.57. Ask us about the handling of 601 and 602 Fixed Expenses (examples are: Salaries/Benefits, Facility Costs, Missions, Debt Servicing, etc.).
BuxBox (Similar to the Envelope System) Balances as of May 31, 2xxx
501 Missionary Jones - Support
28.53
502 Missionary Smith - Support
405.57
590 (Deficit) from Previous Years
(5,706.41)
599 Board Emergency Fund
14,574.00
Total 500 SPFs BuxBoxes
9,301.69
600 Annual General Purpose Fund -GPFund
601 Fixed Expenses
272.70
602 Fixed Expenses
28.65
625 Non Fixed Operating Depart
59.06
681 Non Fixed Operating Depart
37.30
682 Non Fixed Operating Depart
44.88
Total 600 -GPF BuxBoxes for this year
442.59
Contact Jim@bcidot.org for more "Fixed" Info
Total BuxBox Balances
$9,744.28
This accounting system provides other reports for monitoring financial activity and account status. Simply "Click On" the place indicated below to view samples of other reports.
Click Here for the periodic "Point in Time" Photo report
Click Here for the periodic "Period of Time" Video - "BuxBox Activity" reportFURTHER INFORMATION:
For further information regarding this "eFinFax" accounting system, or specific aspects thereof, please "Click On" the title below for access to indicated link contents.
Accrual Basis of Accounting and initial eFinFax Issues
Bookkeeper-Treasurer (BeeTee) dialog about this eFinFax accounting system
Christ Centered Ministries (Mom-Pop) who handle $100,000 or less per annum
Compilation - one of the annual CPA reports
Evangelical Council for Financial Accountability - ECFA
Fund Accounting at Ministries Issues
HOMERS - folk who remotely serve Christ-Centered Endeavors
Generally Accepted Accounting Principles - GAAP
Plastic and Online Payments - appropriate use thereof
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Feel free to contact either of us at JIm@bcidot.org or Brad@rpfin.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 July 05, 2011
Filtered phone number: 1 (559) 298-5507
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