INTER - OFFICE MEMO
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TO: Those of you who are Interested FROM: Jim Bramer
RE: Use of "Internet Friendly" resources
for Ministry Finance & Accounting purposes DATE: September 2009
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Like many of you, I am convinced that we should be using all of the available tools for Ministry purposes like: acquainting people with the Lord Jesus Christ so they can be saved and assisting them live for Him and be mature in the Word. This includes making the most of �Ministry Finance Internet Friendly� data (please note the "Blue" link resources throughout this Memo) as we make full use of the Internet and related resources.
In addition, such resources should also be utilized as Tools to do needed administrative functions needed by �Christ Centered� groups/people. This includes the management, accountability and stewardship of tangible assets --- especially money matters and related fiscal affairs. We need to make the most of such tools for dollar transaction processing and reporting so that such entities timely have meaningful and complete �Spending Limit� data for decision making and management purposes, etc.
I am a retired �Auditor-Certified Public Accountant (CPA)� who functions remotely as would a fully supported vocational Missionary so I am obviously biased as to these matters. This CPA counts it an honor to especially assist you �Ministry Finance Internet Friendly� �Smaller Ministries� make full use of such resources so you can be the very best steward of your finances. Many of you are also comfortable using such accounting software as older versions of QuickBooks (QBs) so that after you record all of your transactions that enable you can weekly answer the fundamental question below.
Please note information about the eFinFax accounting system within the "Blue Links" below. This system is designed to weekly answer this fundamental question as displayed via this WebBOOK: "Do I have money to spend in the Ministry areas for which I am responsible ?"
This question is answered via financial Charts (or reports) below that come from this system. Please note the following examples below: "682 Operating Depart" shows an assigned balance of $44.88, while "502 Missionary Smith - Support" shows a restricted available balance of $ 405.57.
You will note that this year's total discretionary GPFund balance is $442.59 and it is identified as "Fixed" or "Non-Fixed." Examples of "Fixed" are: Salaries/Benefits; Facilities Debt Servicing or Rent, etc. You obviously assign such income to "Fixed" categories first and any remainder to "Non Fixed" spending areas.
This Ministry apparently did not use this kind of reporting in earlier years because their overall GPFund (Deficits) were $5,706.41; thankfully they had the $14,574.00 to rely on. Please Note the info below: (02)
500 Special Purpose Funds - SPFs BuxBoxes
501 Missionary Jones - Support
28.53
502 Missionary Smith - Support
405.57
590 GPF (Deficits) from previous years
(5,706.41)
599 Board Emergency Fund
14,574.00
Total 500 SPFs BuxBoxes
9,301.69
600 This Year's General Purpose Fund -GPF
601 Fixed Expenses
272.70
620 Fixed Expenses
28.65
625 Fixed Expenses
59.06
681 Non Fixed Operating Expenses
37.30
682 Non Fixed Operating Expenses
44.88
Total 600 -GPF BuxBoxes for this year
442.59
Total Year To Date BuxBox Balances
$9,744.28
Photo (Balance Sheet) Report
As of May 31, 2xxx
ASSETS (Also see the BREC Sweep system)
Bank Accounts
101 Checking Account
100.00
102 Savings - short term
8,508.61
199 Savings - longer term
7,959.71
Total Bank Accounts
$16,568.32
140 Equipment
15,633.00
141 Accumulated Depreciation
-3,499.00
149 Offset of Equity in Equipment
-12,134.00
$0.00
TOTAL
$16,568.32
LIABILITIES AND EQUITY
Liabilities
222 Credit Card
724.04
280 Unpaid Payroll
6,100.00
Total Liabilities
$6,824.04
Equity
Year To Date BuxBox Bal per above details
9,744.28
Total Equity
$9,744.28
TOTAL
$16,568.32
I define �Small Ministries� as �Christ-Centered Entities� who handle $500,000 or less per year. Such entities include: Such Churches, such Mission agencies or like endeavors, Christian Camps, Christian Schools and even Christian Family Units. Some of you are just beginning and need to use contemporary tools and lay good finance management foundations.
If this overall topic rings a bell with you, please read and digest the �Ministry Finance Internet Friendly� APPLICATIONS worksheet when you Go Here. and indicate via the applicable column how they apply to you. Please also Click Here and go to our free WebBOOK as of June 2010 entitled: "A Journey to be Christian Ministry Finance 'Internet Friendly'"Then let us know just how you think we can help by contacting me at Jim@bcidot.org ( An Outsider looking in) or by contacting Brad at Brad@rpfin.org (An Insider looking out). Of course, we would be happy to provide you with references.
The "eFinFax" system process includes such features as the following:>> You go Online each week and access your Bank and Credit Card transactions and know
your account balances.
>> Then you electronically move individual transactions therefrom to -
>> Your computerized Ministry accounting system which is set up so that-
>> You have weekly reports - See the report samples above --- please (Go Here) and access
more samples; your system would allow you to either print out or simply view Online.
>> These weekly reports are structured so that you are enabled to stay within your
pre-approved spending limits. This is essential !
>> Using Internet resources, you receive money that comes directly from their bank to
your bank account -
>> And you pay bills via the Internet � or money electronically goes from your bank directly
to their bank account.
>> The staff�s net pay goes electronically from your bank to their bank account.
>> You have a separate computerized �People� database which includes donation
information that provides deposit information for this overall system.
>> Trained remote helpers are available via the Internet as you arrange for them to help you
either each week or as often as they are needed, etc.There has also been some consideration about an Online "Forum" for interested folk to cover these matters so that you can learn from one another as you help each other. Here is an Online "Forum" example: http://groups.yahoo.com/group/qbunch/. Let me know if you think something like this would be of value.
Keep looking up !!==============================================================================
Please click on the "Blue Links" below and digest their contents
Accrual Basis of Accounting and initial eFINFAX Issues
After the Fact (ATF) features
Bookkeeper - Treasurer's Goals
BuxBox Method - Unique Spending Control features
Compilation - one of the Auditor - CPA's annual reports
eFINFAX - Dialog with a Church's Bookkeeper about this accounting system
eFINFAX - Accounting System information
eFINFAX - numerous links on this overall topic
Evangelical Council for Financial Accountability - ECFA
Functional Expense
Fund Accounting at Ministries
HOMER HELPERS - folk who remotely serve Christ-Centered Entities
Ministry Finance Internet Friendly -- information on this overall topic
Generally Accepted Accounting Principles - GAAP
Ministry Finance Team (Board sub-committee) assistance -- web site for
Mom-Pop Ministries -- those who handle $100,000 or less per annum
People Database and accounting for Donations
Plastic or Credit Cards - appropriate use thereof
References Information
QuickBooks (QBs) Accounting Software - used by Ministries
Smaller - newer - Ministries - web site for
Spending control assistance --- web site for
Where" and "Why" you have money Issues
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eFinFax/0350-01.html as updated on August 06, 2011