TO: Interested Small
Churches and Ministries FROM: Jim
Bramer - Retired Auditor
RE: The Electronic "eFinFax"
ORIGINATED: June 2008
Christ-Centered Ministry needs an accounting system designed to keep
track of where the money comes from and how it is spent --- plus
readily answer this weekly question: "How much money is
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.
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
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
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 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
Appropriate use of Plastic and Online
In today's world, more and more financial transactions are being
handled "on-line" including payroll, banking and purchasing
trend no doubt will certainly continue. Under the
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
also facilitate the prompt recording of transactions so that the
current amount of available funds can be readily known.
After the Fact (ATF)
The ATF feature allows for the electronic download of financial
transactions at a financial institution directly into the
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.
Easy to use Reports (10):
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.).
(Similar to the Envelope System) Balances as of May 31, 2xxx
accounting system provides other reports for monitoring financial
activity and account status. Simply
On" the place indicated below to view
samples of other reports.
for the periodic "Point in Time" Photo
for the periodic "Period