"EDITED ONLINER DIALOGS"
TOPIC: Ways of using QuickBooks (TM) to do Fund Acctg DATE : July 17, 2000
FILE: 2021-07 Update: March 09, 2012
Onliner #1:Am trying to set up and use QuickBooks in a fund accounting setting. Any ideas?Jim Bramer as Onliner #2:Click here for our "QB and Fund Acctg" FAQ .... hopefully both this and Click here will be resources for you as we recommend using QB Equity Accts as per indicated Fund Acctg Method One.Onliner #3 (as edited)We set up a liability account for each restricted account within Quickbooks as we account and report re designated monies (or do Fund Accounting). It seems to meet our needs.Onliner #4I have found that the best way to use QB is to use all 'ordinary' income and expense for the operating fund and 'other' income or expense for special funds keeping them separate by account number sets. Under this method I use QB classes to identify each fund.You can set up and use sub-accounts under a bank account to track funds. When it comes time to reconcile the bank, you reconcile the control account only. This is a way to distinguish among multiple funds even though you use only one bank account. See below for details:
One way to track funds in QuickBooks is to create sub-bank accounts under a main bank account. The main bank account is called such as name as: "My Bank Reconciling Account" The sub-bank accounts should be the ones to track your funds. When you need to write a check from one of your fund accounts, simply create a check and select that funds "sub" bank account.
When you receive income, you need to track that income through your income accounts the way you normally would; however when it comes to depositing that income you have one of two choices:
1) Make a separate deposit for each fund (sub-bank) account and deposit it that way into the bank (they shouldn't mind...after all, look at all the money they get to provide a few services to you!).
2) Deposit the total amount into your regular checking account and in the checking register, transfer the money to the fund account you are depositing that money to. Create a "XFER TO FUND" name in the "Other names list" and use that name as the "Payee" in the register so that when it comes to reconciling, you can easily identify the transfers that will not show up in your bank statement (they are internal to your company). These transfers should always "zero" out. To make sure, run a "CNTRL Q" or quick report for that "XFER TO FUND" customer and see that the end amount is "ZERO".
Remember, your reconciling account (main account) is only to be used for reconciling. However, it will contain your true bank balance. The balance is simply being split into the sub-Bank accounts in order to track your Funds.Our small group handles a lot of money that requires special handling. We decided to use Quickbooks' "Customer: jobs" feature instead of using classes (or "locations" in Quickbooks on the Web) to track restricted funds. We are treating a group as a "customer," and specific projects within that group as a "job." When we print a job profitability summary, we can see at a glance in which projects we have collected more than we have spent - those positive balances, added together, are our temporarily restricted funds. We also then have created "customers" called "management and general" and "fundraising."Onliner #7I would add that Fund Accounting confuses even some accountants; it IS somewhat of a specialty.You might want to get some help from a competent professional accountant who has such experience. Of course, this pro should know QB.*******************
Email us at Jim@bcidot.org if you have any questions or have more information.
As most of you know, we here at www.bcidot.org dialog by email with Onliners regarding Ministry Finance (MinFin) matters. Above are what we call "Edited Onliner Dialogs", or edited version 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 you can learn from one another.. Let us know if you would like to dialog on a Peer to Peer basis with the other Onliner involved and we will try to put you together. Thanx - Jim Bramer - Proverbs 9:10
HOME | ABOUT US | OUR PURPOSE | SITEMAP | COMPUTER FUND ACCTG | HELPS