2034- 07 QB and Church - Set up dialog etc - 2034-07 ZZeod

"EDITED ONLINER DIALOGS"


TOPIC:  Church and the use of Quickbooks  (QBs)                                ORIGINATED  September 30, 2002

TOPICAL OVERVIEW:   This is a rather over-all  dialog between  Jim@bcidot.org  and  Fran who had a number of   'how to'   type questions as they updated their pre-school and church books.    

FILE: 2034-07                                                                                                      UPTDMarch 09, 2012


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From Fran:   
        Do you think it would be better to set up the school as a school fund in order to maintain the church and school together under one company? It looks like in the past they have transferred funds back and forth but I am not sure why yet. Or should I set up three companies�  1-church, 2-school, 3 fixed assets (church and school) and consolidate annually via Excel?
 
From Jim:
        Based on what I have learned about your Ministry of Church and Pre-School, etc, if it were me, I would have three different set of QBooks ... for the three above .... and consolidate at least annually (If not more often). You can still have one pooled Bank Account at the Church with a clearing account between the Church and the School via the different set of QBooks. Let me know if you have questions on how to efficiently do this.

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From Fran:
        Since I am not real comfortable with payroll (I am still going through your payroll references), should I have LEE keep maintaining the payroll on the old system for the W2 purposes and make a journal entry later?

From Jim:
        I agree ..... seems best to carry the existing payroll arrangement through the calendar year 2002. Place the batch payroll info into the system via a Journal entry. If appropriate, make use of a �Net Pay Clearing� liability account for such purposes..  

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From Fran:
        I don't think he has been taking out taxes for special offerings for the Pastor/Staff. I am not even sure where to start with the payroll.

From Jim:
        That is one of the reasons I suggest you defer any direct involvement in payroll for a time.  You need to learn what is going on and what maybe needs improvement for both the clergy (who technically are self employed but get W-2s) and the non-clergy. Then begin fresh with the new calendar year.
 
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From Fran:
        LEE will continue to verify Sunday offerings, and maintain contribution records, until I get things set up. The church Secretary will be handling some of the other things that he had been doing.

From Jim:
         Good to hear that you are spreading this out. Counting/processing of Sunday monies should be cared for by a special team anyway. 

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From Fran:
        I have Excel, can contribution records be maintained on Excel efficiently?

From Jim:
         Yes ..... some do it....... but I do not recommend use of the Excel software for this purpose. When appropriate, I look forward to delving more deeply into the CMS - Church Management Software/Systems, or  �DonaMail�  topic with you. January 1, 2003 is also a good time to make any changes regarding  Giving Unit/people data base and Donation record keeping (DonaMail). 

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From Fran:
         What is your thought on using one bank account for everything. I thought that I might wait until I can reconcile the others, and then close them and work from one account.

From Jim:
        See above comment about the Church and the School. A consolidated/pooled common bank account is the way to go for money management purposes.  B U T ------- as you say, be sure you know what are the current restricted fund balances (as represented, apparently, by different bank accounts). You may have to discontinue the bank accounts gradually as you implement your Special Purpose Fund (SPF) Accounting methods etc.

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From Fran:
        Also I am leery about any restricted fundsthat will be my first recommendation-no Board discretionary restrictions - at least for awhile.

From Jim:  
        I hear you, Fran .....  but accounting for Board approved donor restricted monies (Special Purpose Funds-SPF) are what makes church finances unique. I am convinced that you will be more comfortable with SPFs as you move along. Plse see  0041 content.        
                         
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From Fran:
        I would like to start with no prior opening Balance Sheet account balances, and process as a new company for a few months until I can go through each account and try to get a reliable figure? What are your thoughts?

From Jim:
        Well ..... opening balances in said special bank accounts (SPF opening balances) will need to go somewhere if they are valid, etc --- it is not likely that you will want to place them in the opening balance of the General Purpose Fund - GPFund. Plus the Church will likely receive such monies and you will have to do something with them. As I said above ...... am sure you will soon get comfortable in handling SPFunds. Be sure I help you in this regard.  

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From Fran:
        I am meeting with LEE and one Board member this weekend to get the backup as of  08/30/02 QB file and to review the church and school process. I have asked that LEE reconcile all accounts as of 07/31/02, obtain all debt balances as of 08/31/02, make all deposits, and pay all of the bills that he can by 08/31/02.

From Jim:
        Glad to hear that you plan to do the bank reconciling as of 08-31-02.   Tell me more about School accounts receivable record keeping .......and the need to bring this forward as of 08-31-2002/09-01-2002, etc. If the School does NOT understandably use QB to do the School Acct Rec (Schar) record keeping, be sure we discuss a periodic �ScharAge� in/out Journal Entry.

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 From Fran:
        Once I get the file backed up, I would like to send you the old file and the new one 
  
From Jim:
         Look forward to ultimately receiving a copy of the following QBPro2002 file copies. 1> That which goes through 08-31-2002 ---- after you are comfortable with a> all known assets (reflect Fixed Assets as they are shown at this time); b> all liabilities; c> each SPF Balance (probably just the other half of each SPF Bank acct),  d> plus you have the banks reconciled.  2> Church Only that begins with accurate 09-01-2002 balances.  3> School Only that begins 09-01-2002. 4>  LB&E (Land, Building Equipment), or Fixed Assets, and related Liabilities.

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From Fran:  
        Do I just attach my file and email it to you, or do I have to go online somewhere and register  (I have the QB2002 version).

From Jim:
        Yes ..... the normal transfer procedure is for you to attach the QB file to an ordinary Email.   LEE had a problem getting his file to me for some reason.  Suggest you learn from him why ...... then we correct it and begin immediately to exchange files.  Would you like me to send you a Sample QB file that we exchange and you get comfortable with the process, etc?  Perhaps his problem was file size and we will have to proceed in a special way.   Let me know.

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          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.   Thanx - Jim Bramer, Retired CPA-Auditor  - Proverbs  9:10

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