- - And the Lord direct your heart in the love of God as you faithfully serve Him - -

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 TO:  Interested Onliners or Ministries                                                                                             FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                      FILE:  0205-04/jrnl
   
 RE: J I Ms  J R N L  for the month of May 2004                                                                                                        Originated:  May 2004  

PURPOSE:  To help your  Ministry Finance Team  be more effective:

ACCOUNTING  SYSTEM   ESSENTIALS (4):

    Please  click here  and go to a suggested list of Ministry Finance Team mandates; I further suggest that you give yourself  some Accounting system Essentials  "A to F" grades as a result of you asking yourself the following questions:

•   Does our Accounting System provide timely information so decisions can be made?
•   Does it give readers adequate and timely ' (1) where are we and (2) where have we been" information?
•   Does it show trends or provide a means for comparison of where we are in relation to where we should be?
•   Can it be managed by the applicable volunteer or staffer?
•   Does it provide a means of financial internal control over recorded assets?
•   Does it enhance accountability of all financial resources and obligations?
•   Does it satisfy necessary record keeping for taxing authorities and internal/external auditing?
•   Does it show where the money came from and where it went for a "Period of Time?" 
•   Especially in relationship to what was authorized (Budget)?
•   Does it reflect the status of Assets and Liabilities at a certain "Point in Time?"
•   Does it reflect the status of both Restricted and Unrestricted Fund Balances at a certain "Point in Time?"
•   In general, does it adequately bespeak a financial message; or does it appropriately articulate Ministry Finance data to those who should know?

   If you have any poor grades, ask us at JimRetCPA@bcidot.org if we can help you make the necessary corrections.

Year End Cross Referencing using the Internet (1):

        As an accountant, especially auditors, you do a lot of cross referencing of data - especially at year end. Or you write something like (1) on one area of a piece of paper and then place the (1) on another area of a piece of paper for cross referencing purposes. Or you have a whole bunch of hard copy work papers that are identified in the accepted way for such purposes.
        By the way ---- I can remember one mentor teaching me a long time ago how to include a long piece of adding machine tape (let's say two feet) onto a 8 1/2 by 11/14 sheet of paper. You do not staple it, but you scotch tape the beginning to the top and the end to the bottom of the sheet of paper and then fold the adding machine tape into small segments, etc. (You often do the folding first). This way all areas of the adding machine tape is accessible and you can cross reference to it, etc.
        The need to do cross referencing is why I am impressed with the Iinternet's hyper linking ability. Or you click on it and you go to another area of the Internet -- in this case for needed cross referencing reasons. Let's say that:

a> A Ministry's General Ledger data is placed on a secure web site. In Quickbooks this can be done by converting applicable printouts into Excel format and then converting that data into password able HTML and coded web pages.
b> You then take applicable hard copy data (like bank statements) and scan them into PDF format as a web page so that you can access and read said hard copy via the Internet.
c> If the CPA-Auditor needs hard copy, then the applicable web page content can be printed from the Internet

        As pointed out when you  Click Here  , this process could be helpful for all parties for at least the following reasons:

1> Much of their work could be done in the CPA-Auditor's office ... or it would reduce travel time and costs
2> Small Ministries especially need to be served by CPA-Auditors, but it is often too expensive. Please link to  0922  for more perspective.
3> Ministry savvy CPA-Auditors are often remote or do not function from your area.
4> This could especially pertain to Review assignments. See  0003  as to types of year end CPA-Auditor assignments.

        Contact me at JimRetCPA@bcidot.org  about linking to some actual samples showing details of how this was done.

"Quickbooks for Non Profits" and "Quickbooks Pro" (2):

Below is an edited version of my recent dialog on the topic of "Quickbooks for Non Profits". and "Quickbooks Pro"

To Jim:
        I realize that QBooks for Non Profits is more expensive than the current version of QBooks Pro.  Click here for details.  But I am wondering if the extra money might be worth it in the long run.  From what I read within your 0601-06 web page, there are at least four methods of doing Fund Accounting via QBooks.  Wouldn't the straight forwardness in the use of QBooks for Non Profits eliminate the need to make a choice of one of these methods and the applicable customizing of QBooks Pro?  Wouldn't it be a little more intuitive?. 

From Jim:
      Very thoughtful questions .... my impressions along these lines include the following: 
     1>  QBooks for Non Profits uses 0601-06 Method 4 (the Method that Intuit recommends), which is very doable, but not ideal for reasons stated within 0622-02
     2>  QBooks for Non Profits  provides very helpful assistance with the Functional Exp acctg for cost allocations of “Program/Mgt&Gen and Fund Raising” as required for filing annual IRS form 990.  However, I believe the Functional Exp acctg should have an end of year thrust only. For more perspective, please read the content of  0919-03
     3>  I even suggest, because of such small annual QBooks Pro applicable improvements, that new users of QBooks Pro go to www.eBay.com  and buy QBPro2002 or 2003 versions and save even more “purchase software” money.  Be sure you have the means to produce QB reports via Excel.  Please go to 0079-20 for an Online QBooks tutorial.

Paper Management - see Ideas (3):

Most of us handle a lot of paper.  I trust the following makes a contribution to your Paper Management  efficiency.

• Please consider such Paper Management maxims as:
      << Timely information is the lifeblood of effective decision-making flowing from structured and organized files of written data.
      << Written communication should work for you - not against you; it must be a tool (blessing) not a tyrant (curse).
      << View a written piece of paper as an action device; features should include:
              -- ideally be typewritten - some of us do not hand write well;
              -- contain today's date;
              -- not small size - since paper can be so easily misplaced;
              -- make liberal use of staples.. not paper clips...this way common papers stay together;
              -- possible use of colored paper for like action groups (8).
      << The primary purpose of files should be retrieval; not for storage purposes only.

• Objective:
          What
                  << Communication is the core need
                  << Need to care for assigned responsibilities
          When:
                  << Timely
                  << Per internal and external priority assignment
          How:
                  << Efficiently
                  << By use of proper tools
                  << Especially written communications
          Why:
                  << Want to live a productive Christ-honoring life

• Paper  in-flow:
          Sources:
                  >> Junk Mail definition and distribution
                  >> Via external and Internal written messages
                  >> From yourself - written task assignments or reminders
                  >> Internal written reports requiring Task priority determination and action
                  >> Phone messages and Mail from Post Office - publications
                  >> From Your pending/Tickler/Up-File content
          Effective use of Files
                  -- Their organization
  -                - Their location
          Some Management ideas:
                  -- Use of "In-Box" - sometimes called "Action-Box"
                  -- Read it once - make needed decisions and write it down on the viewed piece of paper
                  -- And take priority action

• Paper out-flow:
              Use of "Out Basket"
                  >> Distribute twice daily
                  >> Preference is that My "Out-Box" content is Someone else's "Action-Box" content
                  >> Send to someone else Internally
                  >> Or externally - usually via the post office

• Papers Retained:
  >> Conclude today's tasks first thing of a morning -- A MUST !!!
  >> Establish deadline info from priority sources
  >> Self imposed
  >> Externally imposed
  >> Todo Lists are not as effective as the use of Common Task groupings of uniform sized pieces of paper that are placed in priority order
  >> Future (tomorrow's) tasks
  Write down tasks/appts immediately upon recognition -- on calendar or paper with me at all times.

• Have a management strategy for  'pending'  files/notes/etc - Sometimes referred to as "Procrastination" files/notes
  Make Use of a Tickler or Up-File system
              >> Pieces of paper placed in a location/file For action at a subsequent time
              >> Usually next week or month etc - Click here for more Up-File specifics.
  Have a Email Management strategy -- Click here for some Email Mgt ideas.

Print and Deliver Services (5):

        Please go to the  www.thegreatmultitude.com  web page and read about the following services as it likely will sound appealing to many Ministries who regularly make selected "Snail" mailings to their constituency.  My understanding is that after you have placed your data within their database, they then care for the hassle of printing, folding, stuffing, sorting and mailing letters -- thereby giving you more time to focus on your ministry. You simply select the constituents to which you want to send letters.  This service involves something like the following:

•   You compose Online the content of the body of the letter
•   You select the Mailing Options as set forth within the  www.thegreatmultitude.com  services.
•   They stock and print out to your own Letterhead and Envelopes. 
•   You no longer cope with such things as:   above supplies, printer ink cartridges, deal with printer problems, wait for letters to print, run to the Office Supply Store or Post Office at the last minute, or depend on part-time help to complete the process.

        Let me know at JimRetCPA@bcidot.org  if you have successfully used this service

Free Outsourced Payroll services via PayCycle (7):

        When you reference some of our link contents ( like 8089 ), you will note that we generally recommend that Ministries outsource their payroll. You might also find of interest the poll at  0211.   This outsource process means that a Ministry would use their computer and provide someone else with payroll info and this service then does all of the check preparation and filings of payroll tax returns. This process also includes direct deposit of Staffer's net pay to their Bank Accout - or the production of an actual pay check.
        One such a competent payroll service is called PayCycle.   Please go to 2040  and view an Email dialog about how tax exempt Ministries can get this service free of charge.
 

Potentially helpful Links for the MFTeam (6):

TOPIC:	Found at:
1-College Scholarship Helps	http://www.scholarshipcoach.com/
2-Remote use of U.S. Postal Services	http://www.usps.com/
3-Cell Phones and Fund Raising	http://www.cellforcash.com/main/index.asp
4-Vehicle Donations	http://www.giftlaw.com/article.jsp?WebID=GL2003-0459&D=200405
5-Christ Centered Technology	http://content.christianity.com/383/31600/383_31600_June03CMR.pittman.pdf
6-Fire Fighter & Tax Deductible Donations	http://www.giftlaw.net/code.jsp?WebID=GL2003-0459&Cat=4&ID=128
7-Budget Process Helps	http://www.churchexecutive.com/2004/03/develop_a_budget_process_that_works.asp
8-School Loan Consolidation Benefits	http://www.loanconsolidation.ed.gov/
9-Online Ministry Finance Action	http://www.bcidot.org/fwi/0927-03.html
10-Emergency Preparedness	http://theepicenter.com/howto.html
11-Merchandise Inventory as Donations	http://www.giftlaw.com/article.jsp?WebID=GL2003-0459&D=200405

Prayerful Thot::

     Dear Lord,  as I get older,  I am more and more appreciative of the truths within "Psalms 74:26-27" via the New Living translation:  "My health may fail and my spirit may grow weak, but God remains the strength of my heart;  He is mine forever."  In Jesus' name,  Amen