Compartmentalized ChurchMgtSystems-CMS - 0921-03 ZZfwi

                    TO:   All Interested Churches                                                                     FROM: Jim Bramer. Retired CPA-Auditor
                                                                                                                                               FILE:  0921-03/fwi

                    RE:  Compartmentalized "Church Management System - CMS"                        Originated in October  2002

    "Today's "Ax to Grind"   

        My thrust within this editorial is to Churches who have annual income of some $500,000 or less -- there are lots and lots of them out there.   Also my frame of reference largely is found when you  Click Here  and view the excellent  Church Management System material that you will find when you  Click Here  or go to  that is provided to interested Churches/Ministries.

        I do NOT agree with some who evidently believe that, to be effective, a single Church Management System (CMS) must integrate both Donation Accounting and the needed General Ledger (Bookkeeping) accounting. 

        I do believe that it is best to meet the CMS needs of such size Churches via two separate CMS Compartments:  1>  What I call a computerized  DonaMail  Compartment  where the record keeping emphasis has to do with your constituency/family, etc. and  2>  A separate General Ledger - "Fund Accounting" Compartment  via the appropriate software (such as QuickBooks) that enables the Church to do such things as "Fund Accounting" and "actual to budget" reporting. Some of my rationale follows.

RE:  DonaMail Compartment:

  The DonaMail Compartment has a  "people"  emphasis.  If nothing else,  it provides information to make constituent mailings plus it enables the Church to maintain a complete record of  people's donations -- with a calendar year emphasis.   Please see the features list when you  click here  for the many other needful things such a system provides the Church.

          When you Go Here,  you will see more details in my dialog with PAT as to the following:

>>  Church weekly giving info is posted and balanced within the DonaMail Compartment.
>>  Such information includes the Donor's designation (Named Special Funds or General Fund) data.
>>  One of the weekly balancing reports includes the total of the deposit and the total given to each Fund.
>>  This weekly deposit info then is manually posted to the
G/Ledger - Fund Accounting Compartment.
>>  When you use QuickBooks, you can use their memorized features and personalize each week.

  PLEASE NOTE:  In my view, there is absolutely NO NEED for this condensed deposit data to flow electronically from the DonaMail Compartment to the G/Ledger Compartment.  If you use the QuickBooks memorized features, it may take you five minutes a week to post this manually.  What understandable takes the time, is to get everything proper within the DonaMail Compartment.

RE: General Ledger - Fund Accounting Compartment:

  Please Go Here  where I have analyzed features via Nick's Church Management Systems  review with the idea of  QuickBooks  meeting the Church's needs.   Some of the many  G eneral Ledger - Fund Accounting Compartment  issues include:

>>  Immediate Fund Balance info after posting a transaction
>>  Immediate Actual to Budget info after posting a transaction
>>  Appropriate handling of unique Clergy Payroll - including a Clergy W-2
>>  Internally and externally auditable.


  Suffice is to say ......  it is not necessary, particularly for Smaller Churches or Ministries,  to combine all the needed CMS features into one piece of software.  Thank you.

            K E E P   L O O K I N G   U P !!

       CLICK HERE  for a list of of our "For What it is Worth" Editorials or Online documents.

UPTD: July 19, 2012