QBooks Hands On - Church Self Help 0079-20 ZZhlp

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

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


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 500 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 either exchanged files or viewed their desktop of a number 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 "LIQ" (short for Liquid -- as apposed to non-Liquid aspects like Building, etc.)  portion below only is sufficient, since you do not have a Building project under way. 
         So consonant with the  "self help"  emphasis found Here,  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.  Go Here  for another aspects of all this.

           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. "LIQ QBs Hands-On" Sample -- Set Up
  3. "LIQ QBs Hands-On" Sample -- Chart of Accounts
  4. "LIQ QBs Hands-On" Sample --  08-31-200x Opening Journal Entry
  5. "LIQ QBs Hands-On" Sample --  01-Photo Proof-Bal/Sheet
  6. "LIQ QBs Hands-On" Sample --  02-GPFund  Video Proof P&L
  7. "LIQ QBs Hands-On" Sample --  03-SPFunds Video Proof P&L
  8. "LIQ QBs Hands-On" Sample --  GPFund Actual to Budget ( A to B) Reports
  9. "BLDG QBs Hands-On" Sample -- Chart of Accounts and 01-01-200x-Opening Journal Entry
  10. "BLDG QBs Hands-On" Sample -- 01-01-200x Opening Journal Entry
  11. "BLDG QBs Hands-On" Sample -- 08-31-200x Journal Entry
  12. "BLDG QBs Hands-On" Sample -- 01-Photo Proof
  13. "LIQ QBs Hands-On" Sample -- 1st week in September 01 Sample Giver DBase Report
  14. "LIQ QBs Hands-On" Sample -- 1st week in September 01 Sample Giver DBase Cash Receipts Entry
  15. "LIQ QBs Hands-On" Sample -- 2nd week in September 01 Sample DonaMail Receipts Entry
  16. "LIQ QBs Hands-On" Sample -- All Other September 01 Tranx via Journal Entry
  17. "LIQ QBs Hands-On" Sample -- 09-30-200x 01-Photo Proof-Bal/Sheet
  18. "LIQ QBs Hands-On" Sample -- 09-30-200x 02-GPFund  Video Proof P&L
  19. "LIQ QBs Hands-On" Sample -- 09-30-200x 03-SPFunds Video Proof P&L
  20. "BLDG QBs Hands-On" Sample -- 09-30-200x Journal Entry and 01-Photo Proof
  21. "LIQ QBs Hands-On" Sample -- Year End  - Update FAssets - LB&E Accounts
  22. Sample of "Big Pix"  Annual Report"
  23. "LIQ QBs Hands-On" Sample -- 09-30-200x and 10-01-0x SPFunds Bal Forward - Step #1
  24. "LIQ QBs Hands-On" Sample -- 09-30-200x SPFunds Bal Forward - Step #2
  25. "LIQ QBs Hands-On" Sample -- 10-01-0x SPFunds Bal Forward - Step #3
  26. "LIQ QBs Hands-On" Sample -- 09-30-200x and 10-01-0x SPFunds Bal Forward - Step #4
  27.  List of  "FREQUENTLY USED VOCATIONAL TERMS" appear below

- # 1 -  Preliminaries

    For initial perspective, please Go Here   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  found Here  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;  "LIQ 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 Here.

    We are using an old version of QBs Pro 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.  Versions that are two/three years old are 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


- # 2 -

 "LIQ-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: "LIQ 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  "QBs Class"  lists

Return to the Topics List


-# 3 -

 "LIQ-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


- # 4 -

 "LIQ-QBs HANDS ON"   Sample - 08-31-200x Opening Journal Entry

    OK ....  now that you have these set up you go next to your  BANKING: MAKE JOURNAL ENTRY  and input the following 08-31-200x 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  Go 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


- # 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 08-31-200x 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:

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

Aug 31, xx

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 Found Here  might be of overall help on this topic.

Return to the Topics List


- # 6 -

 "LIQ-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 10-01-200x thru 08-31-200x 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 '0x - Sep 0x

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


-  # 7 -

 "LIQ-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 08-31-200x 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


- # 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 200x-200x 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.

 "LIQ-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 200x thru August 200x 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

555 � Facility Debt Servicing

8,000.00

8,030.00

-30.00

560 � Facility Costs

3,800.00

3,850.00

-50.00

567 � Ministry Expenses

7,890.00

7,865.00

25.00

569 � Defrayment Receipts

-1,575.89

-1,595.00

19.11

575 � Communication Costs

2,625.34

2,640.00

-14.66

580 � Other Supp & Expenses

5,874.85

5,885.00

-10.15

590 � AllElse Costs

835.15

825.00

10.15

GPFund Expenditures

74,949.45

75,075.00

-125.55

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- # 9 -

 "BLDG-QBs HANDS ON"   Sample - Chart of Accounts and Opening Journal Entry

    As applicable, we are now ready to establish and set up the separate QBs Company called  BLDG-QBs HANDS ON Sample --   If you do not want to go through this BLDG-QBs HANDS ON Sample   process then skip to Step #13 and do not following any other  references to  BLDG-QBs HANDS ON Sample

     OK, now please begin by doing the following:

    Choose New Company; Skip Interview; See below for the Chart of Accounts for this separate QBs Company.... do not choose any of Intuit's Chart of Accts;  name is: "BLDG-QBs HANDS ON";  First month of fiscal year is January (leave balance of form blank); Next; Next.  Place in folder called "Program File/Intuit; then  "x" out of all Getting Started -stuff- Notice the following tabs and do the following:

VIEW:  Remove icon bar
LIST:  See below for Chart of Accounts

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

QBs Type

Number

         Name

Fixed Asset

100-Construction Cost Totals

Fixed Asset

sub

141-New Land

Fixed Asset

sub

142-Phase One Costs

Fixed Asset

sub

143-Phase Two Costs

Fixed Asset

sub

144-Phase Three Costs

Other Assets

259-Costrn Acct Clearing

Long Term - Liab

255

Loan Proceeds

Equity

600-Equity Totals

Equity

sub

301-Constrn Fund Equity 01-01-01

Equity

sub

401-Donations since Beginning

Return to the Topics  List

 


- # 10 -

 "BLDG-QBs HANDS ON"   Sample - 01-01-200x Opening Journal Entry

    OK ....  now that you have these set up you go next to your  BANKING: MAKE JOURNAL ENTRY  and input the following 01-01-200x Journal Entry.  As explained above, use the EDIT cut and paste features and place your initials and current date in the "Memo" Column portion of the Journal Entry line.

Nbr

Name

Debit

Credit

141

New Land

12,500.00

142

Phase One

26,877.50

143

Phase Two

8,877.90

144

Phase Three

540.00

255

Loan Proceeds

12,500.00

401

Donations since beginning

30,850.00

301

Fund Equity

-

5,445.40

Return to the Topics List


- # 11 -

"BLDG-QBs HANDS ON"   Sample - 08-31-200x Opening Journal Entry

    Then to get current, and make sure they are in balance, with the transactions in the 259 Clearing account of both QBs sets of books as of 08-31-200x, please go to the BANKING: MAKE JOURNAL ENTRY  and input the following 08-31-200x Journal Entry.  Use the EDIT cut and paste features and place your initials and current date in the Memo Column portion of the Journal Entry line.    

Nbr

Name

Debit

Credit

259

Constrn Clearing

10,000.00

255

Loan Proceeds

10,000.00

143

Phase Two

2,760.70

144

Phase Three

4,851.12

259

Constrn Clearing

7,611.82

401

Donations

7,581.50

144

Phase Three

7,581.50

-

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- # 12 -

"BLDG-QBs HANDS ON"   Sample - 01-Photo Proof

      Now please go to the REPORTS: Company and Financial: Balance Sheet Standard; make sure you use the 08-31-200x 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. 
      The Memo Fixed Assets within the
"LIQ QBs-Hands On" set of books do NOT yet include any of the following;  this will be updated as a part of the 09-30-200x fiscal year end closing.
      Since there are no other needed reports, please print out this one only .... it should look like the following:

Aug 31, 01

ASSETS

100 � Construction Cost Totals

141 � New Land

12,500.00

142 � Phase One Costs

26,877.50

143 � Phase Two Costs

11,638.60

144 � Phase Three Costs

12,972.62

Total 100 � Construction Cost Totals

63,988.72

Other Assets

259 � Clearing Acct

2,388.18

TOTAL ASSETS

66,376.90

LIABILITIES & EQUITY

Liabilities

255 � Loan Proceeds

22,500.00

Equity

301 � Constrn Fund Equity

5,445.40

401 � Donations since beginning

38,431.50

Total Equity

43,876.90

TOTAL LIABILITIES & EQUITY

66,376.90

Return to the Topics List


- # 13 -

"LIQ-QBs HANDS ON"   Sample - 1st week in Sept 01 Sample Giver DBase Report

September 200x Transactions

     During this 1st Week in September 200x you make a deposit in/around your use of the DonaMail, or QBs Giver DBase,  system that is explained in depth Here.  One of the results of this weekly process is shown by the link content found  Here, which is duplicated below:

Acct

Date

Num

Name

Memo

Amount

109

01/17/2xxx

1

998 -No I.D.

75.00

01/17/2xxx

2

999-Loose Offering

A M Service

55.00

01/17/2xxx

3

007-Green, Ben

50.00

01/17/2xxx

4

009-Jackson, Loren

50.00

Total 109

230.00

209

01/17/2xxx

3

007-Green, Ben

350.00

01/17/2xxx

4

009-Jackson, Loren

100.00

01/17/2xxx

5

002-Brown, Sam

55.00

Total 209

505.00

301

01/17/2xxx

1

998 -No I.D.

25.00

Total 301

25.00

Total 760.00

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- # 14 -

"LIQ-QBs HANDS ON"   Sample - 1st week in Sept 01 Sample Giver DBase Cash Receipts Entry

    Using the BANKING: MAKE DEPOSIT,  you will notice below that we have virtually duplicated the above batch totals by account, except that we have used this QBs Company's Chart of Accounts.  PLUS ..... note how we have accounted for the fact that, following this Church's protocol,  10% of anything coming into acct 401 is immediately placed in the Mission Fund (acct 341; QBs Class 44). 

Received From

From Account

Memo

ChkNo

Print Meth

Class

Amount

401-Contribution Income

General Fund Contributions

505.00

420-Less 10% to Missions

Mission Tithe Transfer

(50.50)

341-Missions Fund

Tithe from GPFund

44-Tithe from GPF

50.50

341-Missions Fund

Restricted Donations

42-Missions Donations

230.00

301-Project #1

Restricted Donations

41-SPF Donations

25.00

Down Proof

760.00

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- # 15 -

"LIQ-QBs HANDS ON"   Sample - 2nd week in Sept 01 Sample DonaMail Receipts Entry

    Now for the 2nd Week in September 200x we will suppose that a Church is using some type of non QBs DonaMail system that provides them with weekly batch totals.  Using the BANKING: MAKE DEPOSIT,  you will notice below that it is the same process as above except with different weekly totals.

Received From

From Account

Memo

ChkNo

Print Meth

Class

Amount

401-Contribution Income

General Fund Contributions

1,250.00

420-Less 10% to Missions

Mission Tithe Transfer

(125.00)

341-Missions Fund

Tithe from GPFund

44-Tithe from GPF

125.00

341-Missions Fund

Restricted Donations

42-Missions Donations

325.00

301-Project #1

Restricted Donations

41-SPF Donations

100.00

259-Constr Fund

Constrn Fund Tranx

1,000.00

569-Defrayment Receipts

XYZ Event Receipts

24.85

Down Proof

2,699.85

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- # 16 -

"LIQ-QBs HANDS ON"   Sample - Remainder of Sept 01 Sample Tranx via Journal Entry

       Rather than go through a variety of individual deposits/checks QBs processes for this sample last month of the fiscal year, you will find below the balance of the September 200x tranx via the following Journal Entry:

Account

Debit

Credit

Classes

101 � Checking Account

6,940.00

210 - Payroll Liabilities

200.00

210 - Payroll Liabilities

200.00

501 - Salary and Wages

3,835.00

504 - Payroll Taxes

150.00

506 - All Benefits

360.00

555 - Facility Debt Servicing

725.00

560 - Facility Costs

350.00

567 - Ministry Expenses

700.00

575 - Communication Costs

200.00

580 - Other Sup & expenses

550.00

590 - AllElse Costs

70.00

101 - Checking Acct

3,925.00

102 - Savings

3,000.00

259 - Constrn - Donations

5,675.00

259 - Constrn - Loan Proceeds

10,000.00

259 - Constrn - Phase 3 costs

14,750.00

341 � Missions Fund

600.00

44-Missions tithe

401 - GPF Donations Inc

6,000.00

420 - Less 10%

600.00

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- # 17 -

"LIQ-QBs HANDS ON"   Sample - 09-30-200x-Photo Proof-Bal/Sheet

After all of this,  the three integrity proofs should appear as follows:

PROOF # 1

Sep 30, 01

Checking/Savings

101 � Checking Account

969.85

102 � Daily Interest Bearing Savings

12,351.47

103 � Petty Cash

200.00

Total Current Assets

13,521.32

Fixed Assets

140 � Memo FAssets-LB&E

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

Total 140 � Memo FAssets-LB&E

0.00

TOTAL

13,521.32

LIABILITIES & EQUITY

Liabilities

259 � Constrn Acct Clearing

4,536.82

300 � SPFunds

339 � Total Donor Restrictions

301 � Project #1

1,812.89

302 � Acq Land Project

2,388.18

Total 339 � Total Donor Restrictions

4,201.07

341 � Missions Fund

2,115.10

370 � Board Discretionary

371 � GPFund Loss 09-30-X0

-1,025.87

372 � GPFund Gain 09-30-x1

1,980.50

380 � SetASide #1

2,000.00

Total 370 � Board Discretionary

2,954.63

Total 300 � SPFunds - See Proof 3

9,270.80

GPFund Net Income or Loss  - See Proof 2

-286.30

Total Equity

8,984.50

TOTAL LIABILITIES & EQUITY

13,521.32

 

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- # 18 -

"LIQ-QBs HANDS ON"   Sample - 09-30-200x-GPFund Video Proof P&L

 

Proof  # 2

Oct '00 - Sep 01

Income

499 � GPFund Income

401 � Contribution Income

85,555.00

420 � Less-10% to Missions Fund

-8,555.50

490 � AllElse Receipts

4,578.80

Total 499 � GPFund Income

81,578.30

599 � GPFund Expenditures

501 � Salaries & Wages

45,835.00

504 � Payroll Expenses

1,650.00

506 � All Benefits

4,360.00

555 � Facility Debt Servicing

8,725.00

560 � Facility Costs

4,150.00

567 � Ministry Expenses

8,590.00

569 � Defrayment Receipts

-1,600.74

575 � Communication Costs

2,825.34

580 � Other Supp & Expenses

6,424.85

590 � AllElse Costs

905.15

Total 599 � GPFund Expenditures

81,864.60

Net Income

or Loss - see Proof 1

-286.30

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- # 19 -

"LIQ-QBs HANDS ON"   Sample - 09-30-200x-SPFunds Video Proof P&L

 Proof # 3

Oct '00 - Sep 01

10-Bal Fwd

10,454.63

40-Receipts

41-Donations

27,276.07

42-Mission Donations

46,804.60

44-10% of GPF Donations

7,955.50

Total 40-Receipts

82,036.17

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

see Proof # 1

9,270.80

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- # 20 -

"BLDG-QBs HANDS ON"   Sample - 09-30-200x Journal Entry and 01-Photo Proof

     In order to reflect all of the activity occurring within account 259 (Constrn Acct Clearing)  of  LIQ-QBs HANDS ON, you need to make the following September 30, 200x Journal Entry to  "BLDG-QBs HANDS ON" ;  debit acct 144 for $14,750.00 more Phase 3 costs; debit acct 259 for $1,925 00; credit acct 255 for $10,000.00 more Loan proceeds and credit acct 600 for $6,675. 00 more donations.   This Proof reports then would look like the following:

Construction Proof Report

Sep 30, 01

ASSETS

100 � Construction Cost Totals

141 � New Land

12,500.00

142 � Phase One Costs

26,877.50

143 � Phase Two Costs

11,638.60

144 � Phase Three Costs

27,722.62

Total 100 � Construction Cost Totals

78,738.72

Other Assets

259 � Clearing Acct

4,313.18

TOTAL ASSETS

83,051.90

LIABILITIES & Totals

255 � Loan Proceeds

32,500.00

Totals

301 � Fund Equity 01-01-01

5,445.40

401 � Donations since beginning

45,106.50

� Totals

50,551.90

TOTAL LIABILITIES & Totals

83,051.90

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- # 21 -

"LIQ-QBs HANDS ON"   Sample - Year End - Update FAssets - LB&E Accounts

    The above three Proofs from LIQ-QBs Hands On  are also the final reports for the Fiscal Year End, September 30,  200x. 
     The only 'loose end' is the need to reflect the Building Fund, or Construction,  activity for the year. Or the FAssets - Land Building &Equipment (LB&E)  Memo accounts need to change.  We won't mess around with recording the annual depreciation or the change in the unpaid mortgage during the year.  So you use a Journal Entry to reverse what is there now and then replace the content of these accounts with the following Journal Entry;

Nbr

Name

Debit

Credit

NEW!

140

Property Acquisition

25,845.00

141

See Excel as of  09-30-2000

137,854.60

NEW!

142

Constrn in Progress

78,736.72

143

Accum Depr thru  09-30-2000

5,488.90

144

Unpaid Mortgage at 09-30-2000

74,496.15

NEW!

145

Loan Proceeds

32,500.00

149

Fixed Asset LB&E Offset

-

129,951.27

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- # 22 -

Sample of "Big Pix" Annual Report

     Below is a one-page recap, or BIG PIX via Excel, as explained when you  Go Here , of both the "LIQ-QBs Hands On"  and the "BLDG-QBs HANDS ON"  annual activity.  Ministries are encouraged to use something like this for reporting periodic/annual finances to those who should know.   Let me know at Jim@bcidot.org  if you would like a copy of the Excel doc for the following that has the formulas for future use, etc..

                             Annual Operating Financials

                  October 1, 2000 through September 30, 200x

(See BUILDING Only Below)

Special

General

GPF Expend

Totals

Funds

Fund (GPF)

Budget

Variance

Revenue:

$159,035

Donations

$73,481

$85,554

Cross Funds

$8,555

($8,555)

$4,579

Other

$4,579

$163,614

Total

Total

$82,036

$81,578

Expenditures:

$51,847

Salaries/Benefits

$51,847

$51,900

($53)

$8,725

Facility Debt Service

$8,725

$8,760

($35)

$4,150

Property/Facility Exp

$4,150

$4,200

($50)

$53,875

Mission Support

$53,875

$0

$20,642

Church Expenses

$3,500

$17,142

$17,040

$102

$25,845

Property Acquisition

$25,845

$0

$0

$0

$165,084

Total

$83,220

$81,864

$81,900

($36)

($1,470)

Excess Revenue (Expend)

($1,184)

($286)

Begin Bal Oct 1, 2000

$10,455

Ending Bal as computed

$9,271

"Spoken for" as follows:

Board Discretionary

$2,955

Ending:

Restricted

$4,201

Cash Available

$13,521

General

Missions

$2,115

Fund Bal

Less Bldg/ Constrn (1)

$4,536

$0

below

Total

$8,985

Total Funds

$9,271

($286)

Cross proof is:

$8,985

BLDG/CONSTRUCTION CASH FLOW AND FUND ACTIVITY Through September 30, 200x

Receipts

Completed Projects

� Donations

#1

$12,500

� B4 10-01-2000

$21,011

#2

$26,877

� Since 10-01-2000

$24,319

#3

$11,639

� Total

$ 45,330

#4

$27,723

Money borrowed this year

$ 32,500

Total

$78,739

 

   

Cash on Hand (1)

               4,536

Begin Balance

$ 5,445

Total

$83,275

Total

$ 83,275

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- # 23 -

"LIQ-QBs HANDS ON"   Sample - 09-30-200x and 10-01-200x SPFunds Bal Forward -  Step #1

    One of the challenges in using QBs Fund Accounting Method $1 is to properly close out the GPFund balance at the end of the fiscal year and then to also accurately bring forward into the new fiscal year the balances in each of the SPFunds.  Please Go Here  and digest what takes place.

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- # 24 -

"LIQ-QBs HANDS ON"   Sample - 09-30-200x SPFunds Bal Forward -  Step #2

Notice below how we have mirrored our "LIQ-QBs HANDS ON"  numbers with the"0659" Journal Entries.

As of: 09/30/200x

              ***LIQ****

          ****Go Here****

New

QBs

Name

Debit

Credit

Class

Debit

Credit

Class

Liab

299

MUST BE ZERO

8,984.50

Blank

1,210.94

Blank

(1)Retained Earnings

286.30

Blank

122.40

Blank

341

2,115.10

Blank

300.00

301

1,812.89

Blank

1,000.00

Blank

302

2,388.18

Blank

33.34

Blank

371

1,025.87

Blank

Blank

372

1,980.50

Blank

380

2,000.00

-

Blank

-

-

(1) QBs automatically sends GPFund gain or loss to this account on 10/01/200x

and this entry will clear out Retained earnings come 10/01/200x

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- # 25 -

"LIQ-QBs HANDS ON"   Sample - 10-01-200x SPFunds Bal Forward -  Step #3

    Again notice below how we have mirrored our "LIQ"-QBs HANDS ON  numbers with the "0659" Journal Entries. 

As of: 10/01/200x

               ***LIQ****

     ****Go Here****

New

Name

Debit

Credit

Class

Debit

Credit

Class

Equity

373

GPFund Loss 09-30-01

286.30

10

122.40

10

299

MUST BE ZERO

8,984.50

Blank

1,210.94

Blank

341

2,115.10

10

300.00

10

301

1,812.89

10

1,000.00

10

302

2,388.18

10

33.34

10

371

1,025.87

10

372

-

1,980.50

10

380

2,000.00

10

-

-

 

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- # 26 -

"LIQ-QBs HANDS ON"   Sample - 09-30-200x and 10-01-200x SPFunds Bal Forward -  Step #4

     Please run a separate Proof One for 10-01-200x and another for 09-30-200x.  As shown below, notice how the Liabilities and Equity sections are the same and yet different.

10-01-01 09-30-01

Liabilities

MUST BE ZERO

8,984.50

259 � Constrn Acct Clearing

4,536.82

4,536.82

301 � Project #1

1,812.89

302 � Acq Land Project

2,388.18

341 � Missions Fund

2,115.10

371 � GPFund Loss 09-30-X0

-1,025.87

372 � GPFund Gain 09-30-x1

1,980.50

373 � GPFund Loss 09-30-01

-286.30

380 � SetASide #1

2,000.00

Total 300 � SPFunds

8,984.50

3900 Retained Earnings

286.30

Net Income

(286.30)

TOTAL LIABILITIES & EQUITY

13,521.32

13,521.32

        Now the final step   --- process the Proof 3 as of 10-01-01 and the results should be as shown below:

Oct 1, 01

10-Bal Fwd

8,984.50

TOTAL

8,984.50

                  To remind you .... contact me via  Jim@bcidot.org  for any needed interaction on any of the above topics/steps..

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- # 27 -

        --MINISTRY FINANCE "LINGO"  ABOVE INCLUDES--:

A to B = Actual to Budget reporting
Big Pix = An abbreviation of Big Picture
BREC = Bank Reconciliation

Class = Feature of Quickbooks  (QBs)
DAGS = Dollar Accountability Groups; often GPFund departments
DonaMail = Donation and Mailing database file
Excel = Spreadsheet product
FAQ = Frequently Asked Questions
FRAN = Hypothetical Computer Bookkeeper
Fiscal Year = 12 months, for our purposes it means other than calendar year
GPF = General Purpose Fund, or GPFund - singular
LB&E = Land, Buildings and Equipment
LIQ = Liquid, as apposed to non LIQ activity, like LB&E, etc.

Method One = Preferred way to use QBs to do Ministry Fund Acctg
Proofs = Recommended QBs Reports that proof dollar integrity, etc.
QBs = Quickbooks, QBooks, any version
Sample = QBs system that contains sample transactions, etc.
SPFs = Special Purpose Funds, or SPFunds - plural

 

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     Please Click Here for a list of "How we help Onliners" here at Ministry Finance Team Helps..  The bulk of this Publication originated in July 2002 and was.   UPTD: May 23, 2010   

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