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                          TO:  Interested Parties                                                                                                    FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                                                        FILE:  0079-20/hlp

                           RE:  QuickBooks (QBs) Hands On -- Sample Self Help Process                         Originated:   July 2002                                        

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CAUTION:   As of the UPTD date below, corrections have been made as explained within the following web page:               http://www.bcidot.org/eod/quickbooks/2032-07.html

           PREFACE

        Our web site Ministry Finance Team Helps  was started in the Fall of 1999 and since then we have been in contact with over 250 Ministries regarding their use of the software product known as QuickBooks (QBs) to meet their unique Ministry Fund Accounting   needs.  Click here for a little more Onliner info. We have exchanged files with over 40 of these Onliners as a QBs system has been established within their unique situation. 
        Many of you Onliners have either an accounting or  "use of  QuickBooks or Quicken  - or like software"   background.  But what we have discovered is that ALL of you that wish to effectively implement QBs Fund Accounting within a Ministry really need to go through a  "QuickBooks (QBs) HANDS ON"  Sample QBs Company process --- see below.  Some of you will find that the "REG" portion below only is sufficient, since you do not have a Building project under way. 
         So consonant with the  "self help"  emphasis found in  0916,  we have set forth below the details of this  QBooks Fund Accounting Method#1 . effort.  You do the "QBs Hands On"  process at your own pace and not depend upon us to respond to various steps as our respective schedules permits, etc. (Another example that has come up in that someone overseas uses a non-dollar QBs set of books, etc.)  Of course, we are always available via Jim@bcidot.org  for needed interaction. 

           Below is a list of the numbered steps by named topic within this web page.  Please click the topics below and obtain information that are of interest to you.

1. Preliminaries
2. "REG QBs Hands-On" Sample -- Set Up
3. "REG QBs Hands-On" Sample -- Chart of Accounts
4. "REG QBs Hands-On" Sample --  08-31-2001 Opening Journal Entry
5. "REG QBs Hands-On" Sample --  01-Photo Proof-Bal/Sheet
6. "REG QBs Hands-On" Sample --  02-GPFund  Video Proof P&L
7. "REG QBs Hands-On" Sample --  03-SPFunds Video Proof P&L
8. "REG QBs Hands-On" Sample --  GPFund Actual to Budget ( A to B) Reports
9. "BLDG QBs Hands-On" Sample -- Chart of Accounts and 01-01-2001-Opening Journal Entry
10. "BLDG QBs Hands-On" Sample -- 01-01-2001 Opening Journal Entry
11. "BLDG QBs Hands-On" Sample -- 08-31-2001 Journal Entry
12. "BLDG QBs Hands-On" Sample -- 01-Photo Proof
13. "REG QBs Hands-On" Sample -- 1st week in September 01 Sample Giver DBase Report
14. "REG QBs Hands-On" Sample -- 1st week in September 01 Sample Giver DBase Cash Receipts Entry
15. "REG QBs Hands-On" Sample -- 2nd week in September 01 Sample DonaMail Receipts Entry
16. "REG QBs Hands-On" Sample -- All Other September 01 Tranx via Journal Entry
17. "REG QBs Hands-On" Sample -- 09-30-2001 01-Photo Proof-Bal/Sheet
18. "REG QBs Hands-On" Sample -- 09-30-2001 02-GPFund  Video Proof P&L
19. "REG QBs Hands-On" Sample -- 09-30-2001 03-SPFunds Video Proof P&L
20. "BLDG QBs Hands-On" Sample -- 09-30-2001 Journal Entry and 01-Photo Proof
21. "REG QBs Hands-On" Sample -- Year End  - Update FAssets - LB&E Accounts
22. Sample of "Big Pix"  Annual Report"
23. "REG QBs Hands-On" Sample -- 09-30-2001 and 10-01-01 SPFunds Bal Forward - Step #1
24. "REG QBs Hands-On" Sample -- 09-30-2001 SPFunds Bal Forward - Step #2
25. "REG QBs Hands-On" Sample -- 10-01-01 SPFunds Bal Forward - Step #3
26. "REG QBs Hands-On" Sample -- 09-30-2001 and 10-01-01 SPFunds Bal Forward - Step #4
27.  List of  "FREQUENTLY USED VOCATIONAL TERMS" appear below

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- # 1 -  Preliminaries

    For initial perspective, please go to  0041   as it spells out our view of doing the applicable Fund Accounting for a Ministry's General Purpose Fund (GPFund) and their multiple Special Purpose Funds (SPFunds.).  Probably what caused you to have an interest in learning QBs Method #1  within  0601  is that, following a transaction entry, all Fund Balances are immediately viewable without producing a variety of special reports.  Or you immediately know who belongs to the money on deposit.  Other helpful resources in this self-help process include:

>>    You have and use Excel software
>>    You have one of the those QBs versions that export reports to Excel
>>    As needed, you are able to receive and transmit Email attachments.

    Please be aware that in order for you to understand the various features of the system, we will be dealing with two separate QBs Companies within this Onliner document;  "REG QBs HANDS-ON"  or a Regular Operational Company with GPFund and SPFunds emphasis .... plus a separate "BLDG QBs HAND-ON" Construction, or Building, Fund or QBs Company.  While not always recommended (see 0021), Information about implementing a separate QBs Company for just Donation Accounting purposes can be found within 0621.

    We are using the QBsPro2002 version as I reference the TABs, and resultant choice options, appearing across the top of the QBs System screens.  It will seem a little awkward if you are using an earlier or later QBs versions, but you should be able to interpret.

    If you do not own the QBs software, I suggest that you print out these instructions and locate a QBs user so you can use their software to go through this process.  Since QBs is so widely used, any business may be using this product and you would go to their computer and open up a brand new QBs Company within their system and follow these instructions.  If you feel you need to get a copy of the QBs software, please be aware that you do not need the current version.  The QBsPro2001 version is more than adequate ... such versions out on www.ebay.com  are very reasonably priced.  CAUTION:  Upon purchase make sure you have the Key code and the Registration Number or you will not be able to install or use the program.

    To remind you .... contact me at a Jim@bcidot.org  if you would like this as a Word Doc of this  or for any other needed assistance.

 Return to the Topics List

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- # 2 -

 "REG-QBs HANDS ON"   Sample - Set Up

    Follow the setup and transaction processing instructions for this particular QBs Company follow:   

    Choose New Company; Skip Interview; See below for own Chart of Accts .... do not choose any of Intuit's  Chart of Accts;  name is: "REG QBs Hands-On Sample";  First month of fiscal year is October - leave balance of form blank; Next; Next.  Place in folder called "Program File/Intuit; then  "x" out of all other "Getting Started" stuff.
     Locate the following tabs and do the following:

EDIT:  Preferences; Acctg .. use class tracking; others are not that important now
VIEW:  remove icon bar
LIST:  Input per Step #3  below re the "Chart of Accounts" and the  "QBsClass"  lists

Return to the Topics List

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-# 3 -

 "REG-QBs HANDS ON"   Sample - Chart of Accounts

 Input the following "Chart of Accounts List" - note the indicated "sub" accounts as you do your structuring.    

QBs Type	Nbr	Name
Bank	105-Total Bank-Cash Accts
Bank	sub	101-Checking Account
Bank	sub	102-Daily Interest Bearing Savings
Bank	sub	103-Petty Cash
Fixed Asset	140-Memo Fixed Assets-LB&E
Fixed Asset	sub	141-See Excel for LB&E Details
Fixed Asset	sub	143-Accumulated Depreciation
Fixed Asset	sub	144-1st of Year Unpaid Debt
Fixed Asset	sub	149-Fixed Asset-LB&E Offset
Credit Card	220-Unpaid Plastic
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
Equity	299-Opening Fund Bal
Equity	300-SPFunds
Equity	sub	339-Total Donor Restrictions
Equity	sub	sub	301-Project #1
Equity	sub	sub	302-Acq Land Project
Equity	sub	340-Board Approved Sp Funds
Equity	sub	sub	341-Mission Fund
Equity	sub	370-Board Discretionary
Equity	sub	sub	371-GPFund Loss 09-30-x0
Equity	sub	sub	372-GPFund Gain 09-30-x1
Equity	sub	sub	380-SetASide #1
Equity	3900 Retained Earnings
Income	499-GPFund Income
Income	sub	401-Contribution Income
Income	sub	420-less-10% to Missions Fund
Income	sub	490-AllElse Receipts
Expense	599-GPFund Expenditures
Expense	sub	501-Salaries and Wages
Expense	sub	504-Payroll Taxes
Expense	sub	506-All Benefits
Expense	sub	520-Payments to Denomination
Expense	sub	555-Facility Debt Servicing
Expense	sub	560-Facility Costs
Expense	sub	567-Ministry Expenses
Expense	sub	569-Defrayment Receipts
Expense	sub	575-Communication Costs
Expense	sub	580-Other Supplies & Exp
Expense	sub	590-AllElse Costs

REMINDER:  "sub" above references the ability to provide sub (or sub divided or even subsidiary) lists within the reports and/or the Chart of Accounts listings

Input the following "QBs Class List" - again, please note the indicated "sub" accounts as you do your structuring.    

10-Bal Fwd
40-Receipts
sub	41-Donation Income
sub	42-Missions Donations
sub	44-10% of GPFund Income
sub	49--AllElse Receipts
50-Expenditures
sub	51-Mission Expenditures
sub	52-Supp & Exp
sub	56-Fixed Asset Acq
sub	59-AllExp Expend
90-Authorized In and Out

Return to the Topics List

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- # 4 -

 "REG-QBs HANDS ON"   Sample - 08-31-2001 Opening Journal Entry

    OK ....  now that you have these set up you go next to your  BANKING: MAKE JOURNAL ENTRY  and input the following 08-31-2001 Journal Entry.   You capture this year to date (YTD) trial balance info in this way so that you do NOT have to enter individual deposits or checks for the entire year and so that you the general idea of QB Method #1.  As applicable, please  click here for assistance in setting forth the original QBs Bank Recon.
     If you desire, you can use the EDIT cut and paste features and place  repetitive explanation in the Memo Column. e g., your initials and current date, etc.

Account	Debit	Credit		Classes
101 · Checking Account	525.00
102 · Daily Interest Bearing Savings	9,351.47
103 · Petty Cash	200.00
141 · See Excel for LB&E Details	137,854.60
143 · Accumulated Depreciation		5,488.90
144 · 1st of Yr Unpaid Debt		74,496.15
149 · Fixed Asset-LB&E-Offset		57,869.55
259 · Constrn Acct Clry		2,611.82
301 · Project #1		2,500.00		10-Bal Fwd
301 · Project #1	812.11			50-Expenditures:52-Supplies & Exp
302 · Acq Land Project		4,000.00		00-Bal Fwd
302 · Acq Land Project		26,921.07		40-Receipts:41-Donations
302 · Acq Land Project	2,687.89			50-Expenditures:52-Supplies & Exp
302 · Acq Land Project	25,845.00			50-Expenditures:56-Prop Acquisition
341 · Missions Fund		1,000.00		10-Bal Fwd
341 · Missions Fund		45,879.60		40-Receipts:42-Mission Donations
341 · Missions Fund		7,780.00		40-Receipts:44-10% of GPF Donations
341 · Missions Fund	53,875.00			50-Expenditures:51-Missions Expend
380 · SetASide #1		2,000.00		10-Bal Fwd
371 · GPFund Loss 09-30-X0	1,025.87			10-Bal Fwd
372 · GPFund Gain 09-30-x1		1,980.50		10-Bal Fwd
401 · Contribution Income		77,800.00
420 · Less-10% to Missions Fund	7,780.00
490 · AllElse Receipts		4,578.80
501 · Salaries & Wages	42,000.00
504 · Payroll Expenses	1,500.00
506 · All Benefits	4,000.00
555 · Facility Debt Servicing	8,000.00
560 · Facility Costs	3,800.00
567 · Ministry Expenses	7,890.00
569 · Defrayment Receipts		1,575.89
575 · Communication Costs	2,625.34
580 · Other Supp & Expenses	5,874.85
590 · AllElse Costs	835.15

Return to the Topics List

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- # 5 -

      We now set up and process our Integrity Reports (or what I call "Proofs").. 

      Plse go to the REPORTS: Company and Financial: Balance Sheet Standard; make sure you use the 08-31-2001 date.  Working from the MODIFY REPORTS tab content then:  Choose Header/Footer tab and change the "Report Title" only to read "01-Photo Proof-Bal/Sheet" and click OK.  MEMORIZE into a Group where you can find later.  When you print out this Integrity Report, it should look like the following:

 "REG-QBs HANDS ON"   Sample - 01-Photo Proof Bal/Sheet

					Aug 31, 01
ASSETS
	Current Assets
		Checking/Savings
			101 · Checking Account		525.00
			102 · Daily Interest Bearing Savings		9,351.47
			103 · Petty Cash		200.00
	Total Current Assets				10,076.47
	Fixed Assets
		140 · Memo FAssets-Land Bldg Equipment
			141 · See Excel for LB&E Details		137,854.60
			143 · Accumulated Depreciation		-5,488.90
			144 · 1st of Yr Unpaid Debt		-74,496.15
			149 · Fixed Asset-LB&E-Equity Offset		-57,869.55
		Total 140 · Memo FAssets-LB&E			0.00
TOTAL ASSETS					10,076.47
LIABILITIES & EQUITY
	Liabilities
		Long Term Liabilities
			259 · Constrn Acct Clearing		2,611.82
	Equity
		300 · SPFunds
			339 · Total Donor Restrictions
				301 · Project #1	1,687.89
				302 · Acq Land Project	2,388.18
			Total 339 · Total Donor Restrictions		4,076.07
			341 · Missions Fund		784.60
			370 · Board Discretionary
				371 · GPFund Loss 1st FYE	-1,025.87
				372 · GPFund Gain 2nd FYE	1,980.50
				380 · SetASide #1	2,000.00
			Total 370 · Board Discretionary		2,954.63
		Total 300 · SPFunds			7,815.30
		Net Income			-350.65
	Total Equity				7,464.65
TOTAL LIABILITIES & EQUITY					10,076.47

    The Integrity Proof is that the $7,815.30 above is also in the 03-Proof report below and the $7,815.30 in the 01-Proof above agree. The content of  0610  might be of overall help on this topic.

Return to the Topics List

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- # 6 -

 "REG-QBs HANDS ON"   Sample - 02-GPFund Video Proof P&L

      Now please go to the REPORTS: Company and Financial: Profit and Loss Standard; make sure you use the 10-01-2000 thru 08-31-2001 dates.  Working from the MODIFY REPORTS tab content then:  Choose Header/Footer tab and change the "Report Title" only to read "02-GPFund Video Proof P&L" and click OK.  MEMORIZE this also into a Group where you can find later.  Print out this Integrity Report -- it should look like the following:

				Oct '00 - Sep 01
	Income
		499 · GPFund Income
			401 · Contribution Income	77,800.00
			420 · Less-10% to Missions Fund	-7,780.00
			490 · AllElse Receipts	4,578.80
	Total Income			74,598.80
	Expense
		599 · GPFund Expenditures
			501 · Salaries & Wages	42,000.00
			504 · Payroll Expenses	1,500.00
			506 · All Benefits	4,000.00
			555 · Facility Debt Servicing	8,000.00
			560 · Facility Costs	3,800.00
			567 · Ministry Expenses	7,890.00
			569 · Defrayment Receipts	-1,575.89
			575 · Communication Costs	2,625.34
			580 · Other Supp & Expenses	5,874.85
			590 · AllElse Costs	835.15
	Total Expense			74,949.45
Net Income				-350.65

    The Integrity Proof here is that the $350.65 above in the 02-Proof and the $350.65 in the 01-Proof above agree.

Return to the Topics List

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-  # 7 -

 "REG-QBs HANDS ON"   Sample - 03-SPFunds Video Proof P/L

      Please now go to the REPORTS: Custom Summary Report; Modify Reports; make sure you use the 10-01-2000 thru 08-31-2001 dates.  Display columns = Total only; Display rows= Class; go to Filter: Account; choose all Equity Accounts; OK;  Choose Header/Footer tab and change the "Report Title" only to read "03-SPFunds Video Proof P&L" and click OK.  MEMORIZE this also into a Group where you can find later.  Print out this Integrity Report -- it should look like the following:

			Oct '00 - Aug 01
	10-Bal Fwd		10,454.63
	40-Receipts
		41-Donations	26,921.07
		42-Mission Donations	45,879.60
		44-10% of GPF Donations	7,780.00
	Total 40-Receipts		80,580.67
	50-Expenditures
		51-Missions Expend	-53,875.00
		52-Supplies & Exp	-3,500.00
		56-Prop Acquisition	-25,845.00
	Total 50-Expenditures		-83,220.00
TOTAL			7,815.30

    The Integrity Proof is that the $7,815.30 above in the above 03-Prrof report  and the $7,815.30 in the above 01-Proof agree. Information within  0610  might be of overall help on this topic.

Return to the Topics  List

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- # 8 -

    The process for the GPFund Actual to Budget (A to B)  Reports goes like this: 

     Go to the tab called COMPANY: SET UP BUDGETS: Choose the 2000-2001 fiscal year (note the Annual and Monthly whole dollar Budget data below); choose the 501 expense account; input $3,820.00 in the October 2000 area;  use the Fill Down; made no 0.0% change and click OK.  You will notice there is now a $3,820.00 for each month of the year. 
     Click next to the 504 Expense and process .....   then do this for all of the monthly expenses (deferment) below.

 "REG-QBs HANDS ON"   Sample - GPFund Actual to Budget Report

Expenses	Annual	Monthly
501 · Salaries & Wages	45,816.00	3,820.00
504 · Payroll Expenses	1,644.00	140.00
506 · All Benefits	4,370.00	365.00
555 · Facility Debt Servicing	8,725.00	730.00
560 · Facility Costs	4,140.00	350.00
567 · Ministry Expenses	8,600.00	715.00
569 · Defrayment Receipts	(1,715.00)	(145.00)
575 · Communication Costs	2,870.00	240.00
580 · Other Supp & Expenses	6,410.00	535.00
590 · AllElse Costs	910.00	75.00

        The result is a GPFund Actual to Budget (A to B)  Report  when you go through the following steps:  Go to the REPORTS: BUDGET; choose the P&L Budget to Actual; at Modify Report; be sure of Oct 2000 thru August 2001 dates; Display columns by TOTAL ONLY; Display row by ACCOUNT; Click on "Show Actual" and click on "Show Difference"; FILTER for "All Ordinary Expenses Only", Change HEADER/FOOTER to say "GPFund Actual to Budget Report".  Then click OK and you should note below we are reporting on the expenses only in the following.

			Year to Date (YTD)  Oct '00 - Aug 01		YTD Budget		$ Over Budget
	599 · GPFund Expenditures
		501 · Salaries & Wages	42,000.00		42,020.00		-20.00
		504 · Payroll Expenses	1,500.00		1,540.00		-40.00
		506 · All Benefits	4,000.00		4,015.00		-15.00