2035-07 Church Chart of Account Info - 2035-07 ZZeod

"EDITED ONLINER DIALOGS"


TOPIC:  Church Chart of Accounts Info                                                                                ORIGINATED  October 16, 2002

TOPICAL OVERVIEW:   This is a dialog between Jim@bcidot.org  and  Fran who has just started Quickbooks at this small to medium sized Church and is asking about a Chart of Accounts structure.          
                                                                                                                          
FILE:
2035-07                                                                                             



From Fran:   
 
        As you know, Jim, we plan to begin our new fiscal year with Quickbooks here at our Church.  You will remember we have an annual budget of almost $500,000 and four full or part time staffers.  At this moment we would like to improve our existing Chart of Accounts (infra-structure).  Any comments?
       
      
From Jim:
        
        The best time to re-structure your Chart of Accounts  is when you begin with new accounting software and when you begin a new fiscal year. 
        In the 'grid' below you will see how I have structured a Church's Chart of Accounts via QBooks who use the recommended Method One within 0601.  Please note the following:   >  Use of Chart of Acct numbers - three digits (xxx) for Assets, Liab and SPFund Equity accts;  four digits (xxxx) for GPFund Income and Expenditures accounts and two digits (xx)  for the QBooks  class feature.  >  use of the QBooks sub-account feature  > Links to more info within www.bcidot.org 
 
 

QB Type

Nbr

Name

Links to more Info

Bank

105-Total Bank-Cash Accts

Bank

sub

101-Checking Account

Bank

sub

102-Daily Interest Bearing Savings

0006

Bank

sub

103-Petty Cash

0112

Fixed Asset

140-Memo Fixed Assets-LB&E

0102

Fixed Asset

sub

141-See Excel for LB&E Details

Fixed Asset

sub

143-Accumulated Depreciation

0018

Fixed Asset

sub

144-1st of Year Unpaid Debt

Fixed Asset

sub

149-Fixed Asset-LB&E Offset

Credit Card

220-Unpaid Plastic

0114

Other Curr Liab

205-Total Due to Vendors

Other Curr Liab

210-Payroll Liabilities

Other Curr Liab

240-Funds held for Others

Other Curr Liab

259-Costrn Clearing Acct

3333

Equity

299-Opening Fund Bal

Equity

300-SPFunds

0041

Equity

sub

339-Total Donor Restrictions

Equity

sub

sub

301-Project #1

Equity

sub

sub

302-Project #2

Equity

sub

340-Board Approved SPFunds

Equity

sub

sub

341-Mission Fund

Equity

sub

370-Board Discretionary

Equity

sub

sub

371-GPFund Loss 09-30-x6

Equity

sub

sub

372-GPFund Gain 09-30-x7

Equity

sub

sub

380-SetASide #1

0088

Equity

390 Retained Earnings

Income

GPFund Income

0042

Income

sub

4001-Contribution Income

Income

sub

4020-less-10% to Missions Fund

Income

sub

4090-AllElse Receipts

Expense

GPFund Expenditures

Expense

sub

5000-Salaries & Benefits

Expense

sub

sub

5010-Salaries and Wages

Expense

sub

sub

5040-Payroll Taxes

Expense

sub

sub

5060-All Benefits

Expense

sub

6000-Operating Expenditures

Expense

sub

sub

6020-Payments to Denomination

Expense

sub

sub

6055-Facility Debt Servicing

Expense

sub

sub

6060-Facility Operating Costs

Expense

sub

sub

6067-Ministry Operating Costs

Expense

sub

sub

6069-Defrayment Receipts

0063

Expense

sub

sub

6075-Communication Costs

Expense

sub

sub

6080-Other Supplies & Exp

Expense

sub

sub

6090-AllElse Costs

 
 
 
    QBooks Classes:

00- Balance Forward

40-Total Receipts

41- Donations

42- Personalize as needed

49- AllElse Receipts

60-Total Expenditures

61-Operating Supplies & Exp

62-Personalize as needed

67-Grants Made

68-Defrayment Receipts

69-AllElse Expenditures

 
 
From Fran:
 
        I noticed that you seem to have reduced the number of expense accounts within the 6xxx GPFund accounts.  What is your thinking there?
 
From Jim:
 
        I believe you should start out simple as possible.  It is so easy to unrealistically make your expense categories almost synonymous with your vendors.  So I recommend that when a Church begins a new accounting system they start with the basic categories and expand if they really find it necessary for reporting and spending control purposes, etc.
        The annual Budget process is an important issue within this context.  Leaders already familiar with the old Chart of Accounts and related history need to build next year's budget.

From Fran:
 
        Well,  this is a concern, but I believe the history is detailed enough that we can reconstruct for a new Chart of Accounts set-up
 
From Jim:

        I also feel that when staff approves an expenditure they should ID and document a transaction by Chart of Account numbers.
 
From Fran:
 
        Of course, this is another piece of red tape for all of us to handle, but I can see merit if the authorized Buyer codes their purchases and recognizes it when they read their detailed report, etc.   Where do operating departments fit into all of this?
 
From Jim:

        Good point.   This leads us to further use of QBooks Class Accounts features to account/report for Departmental activity.  Example:   Supplies and Expenses (code 6067) would be departmentalized by Youth Department (200), etc.   See samples within 0710.
 
From Fran:
 
         Thank you, Jim --- this is all very helpful.  Therefore as a User of QBooks , this should allow us to produce reports by all expense line items, or types, regardless  of which Department;  plus Department totals, regardless of expense line items, or types.
 
         This sounds more and more appealing.  I know you are involved in the Ministry Users of QuickBooks Yahoo Forum via: http://groups.yahoo.com/group/qbunch     Do you know of any such other resources for non QuickBooks Users ?
 
From Jim:

        Thank you for asking, Fran.   Please make full use of this valuable Yahoo Forum:  
http://groups.yahoo.com/group/churchadmin/  
        You might ask out there if there are other types of forums for your specific software -- for example, I believe there are Yahoo forums for at least users of Shelby, ACS and Logos.
       Trust all goes well.

 
Below is a list of resources on the topic of Chart of Accounts here on www.bcidot.org  -- I trust you find them helpful.
2004   Church unique accounting issues

0645   QBooks and Church Computer Mgt Systems (CMS)
 
0069   Budget Truisms
 
5109   Internet Church Finance Services
 
0601   Fund Accounting and QuickBooks

0719   QuickBooks Church Samples

0063   Glossary Info
 
0079   Some Self Help info
 
5091   New Treasurer at a Church info

          As most of you know, at  www.bcidot.org   dialog by email with Onliners regarding Ministry Finance (MinFin) matters.  Above are what we call "Edited Onliner Dialogs", or edited versions of actual dialogs with some of you;  but we have honored your privacy and not used your name or that of your Ministry.  Our purpose is to make topical MinFin information available to any interested  Ministry Finance Team  so we all can learn from these perspectives.    UPTDMarch 09, 2012   Thanx - Jim Bramer, Retired CPA-Auditor  - Proverbs  9:10

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