37-JIM's JRNL for the month of September 2005 -- 0209-05 ZZjrnl

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

         TO: Interested Onliners                                                                                                                 FROM: Jim Bramer, Retired Auditor-CPA


         RE: J I Ms J R N L for the month of September 2005                                                                       FILE: 0209-05/jrnl
               (Click Here for "Blogger like" perspective/rationale)

New Microsoft product called "Small Business Accounting" - (3)

Please digest contents of the following links about the New Microsoft product called "Small Business Accounting - SBA":

http://www.microsoft.com/office/accounting/prodinfo/default.mspx
http://www.microsoft.com/office/accounting/prodinfo/quickcompare.mspx

Part of the above link contents includes this Info per Microsoft: "Small Business Accounting 2006" performs all the functions of financial management programs such as QuickBooks and Peachtree, but also brings the additional power and ease of use of the Microsoft Office System. The benefit is that when used with Office programs business owners and managers can easily manage finances, save time and reduce errors, strengthen customer connections, and give employees tools and information to be more productive, all in a familiar interface. Additionally, Small Business Accounting 2006 enables payroll management through ADP2, an industry-leading payroll services provider. When used with Outlook 2003 with Business Contact Manager, Small Business Accounting 2006 offers strong customer management capabilities, connecting customer communications and documents to each account within the familiar Outlook 2003 interface. Small business managers, owners, and authorized employees can then access the data, giving them the dynamic account information they need to service customers quickly and effectively.

Personally, I am impressed with the fact that for under $200.00, this product might be a QuickBooks alternative. I know of no Ministry that does this, but it could especially be helpful if your Ministry uses "Microsoft Outlook's "Business Contact Manager" for DonaMail purposes. I am not sure that SBA has the equivalent of a QB Class feature which is so important to Fund Acctg as shared within 0601 . Payroll is handled within ADP. Of course, it integrates with well known aspects of Microsoft Office like: Word, Excel etc. As you know, QuickBooks makes full use of Excel.

         GAAP (Generally Accepted Accounting Principles) - (8)

   Some times I will reference such a process as doing things "according to hoyle.", but the issue is that financial accounting and reporting at Ministries must comply with the requirements of GAAP (Generally Accepted Accounting Principles) as pronounced via the accounting profession, etc.
    Please go to 0004 where I go into more detail about Ministries and GAAP. You will note that I have divided such Ministry GAAP issues between that which, in my opinion, applies to Daily/Monthly operations and that which applies only at Fiscal Year End. For example - at Fiscal Year End you do Deprecation accounting, plus when applicable, you identify Functional Expenses and you also divide your Fund Balances (Net Assets) between Unrestricted, Temporary Restricted and Permanently Restricted. Please go to 0063 for more info about Functional Expenses. Also go to 0919 for my opinion on some of these matters with respect to Churches - I trust you also find helpful the contents of 5700..

Debit Cards - (5)

    Debit cards combine the functions of ATM cards and checks. Debit cards are issued by banks but are used at stores, not at the banks themselves. When a Ministry (or individual Christian) pays with a debit card, the money is automatically deducted from your checking account. Many banks issue a combined ATM/debit card that looks just like a credit card and can be used in places where credit cards are accepted.
    But do not be mistaken -- they are not credit cards. The money you spend comes out of your checking account immediately.
    There are two reason why many prefer debit cards:

1> You don't have to carry your checkbook and present identification, but are still able to make purchases directly from your checking account. Or at a Ministry you do not have to process a check via the accounting office.
2> Bills are paid immediately, unlike when you use a credit card and get the bill later.

But there are disadvantages to using debit cards. Many people prefer having 20-25 days to pay their credit card bills. Also, consumers using debit cards don't have the right to withhold payment (the money is immediately removed from the account) in the event of a dispute with the merchant over the goods or services paid for. Also, many banks and merchants charge transaction fees for using debit cards.
Finally, if your debit card number is stolen on the Internet, the thief may drain your bank account before the bank is able to complete its investigation. For online purchases, it is better to use credit cards and not debit cards .

IRS Publications and Ministries - (XX)

In 0110 is a list of IRS publications that pertain to charitable organization/donations. In my judgment, every financial person working with Christian Ministries should at least read what is said, even though they may need professional assistance in applying them to their exact situation.

Index of Earlier JIMs JRNL topics - (7)

Please go to 0200 where you will find an index of JIMs JRNL topics during 2002 and 2003 --- which I trust you will find helpful. You will also notice that in earlier years I shared within JIMs JRNL virtually on a daily basis.

Whole Dollar Accounting - at least for Personal Finance - (6)

Not long ago I learned that someone kept their books, or financial records, in "Whole Dollars" only for an entire seven year period of time--- or they rounded up to the next dollar if 50 cents or more and disregarded the pennies if it was 49 cents or less. Someone was not happy with that process, so they re-processed all of the transactions for the entire seven years and the net difference was less than 20 cents.
If you are going to do your personal bookkeeping by manually posting your Deposits, Checks and Credit Card purchases into the QuickBooks or Quicken software, I believe that it is unnecessary to enter the pennies in each transaction. If you need, from time to time, to move up or down a dollar to make the result closer to actual, then simply increase/decrease the last transaction.

Payroll poll - Mostly at Churches -- (9)

1> How many on payroll,
        - 12 or less, 41 votes,
        - 13 and more, 69 votes,
2> Frequency of payroll
        - Weekly, 14 votes,
        - Semi-Monthly, 63 votes,
        - Other, 34 votes,
3> How you process your payroll.
        - Manually within QBooks, Shelby or ACS, 64 votes,
        - Outsource to: ADP, 10 votes,
        - Outsource to: Paychex, 13 votes,
        - Outsource to someone else, 17 votes,

Click below for Potentially Helpful Online Links for JIMs JRNL Readers: (1)

List of CPA-Auditors with Non Profit emphasis     http://www.christianity.com/CC/article/0,,PTID7419|CHID106025|CIID246260,00.html
Internal Controls info via a CPA-Audit firm http://www.kdv.com/nonprofit-articles/aninternal.html
Personal Budgeting 101 per Agape Press      http://headlines.agapepress.org/archive/8/22004f.asp
How to Avoid Fraud in Your Nonprofit   http://www.kdv.com/nonprofit-articles/fraud.html
IRS increases mileage rate for remainder of 2005     http://www.irs.gov/newsroom/article/0,,id=147423,00.html
Daily Prayer format for the Ministry Finance Team    http://www.bcidot.org/gln/0034-10.html
IRS approved "Leave" donations info    http://www.irs.gov/newsroom/article/0,,id=148114,00.html
Free Microsoft software     http://www.techsoup.org/stock/microsoftprogram.asp

Current "Ministry Finance" Truism: (xx)

DAYS (for accounting purposes, especially), or dates, OF THE MONTH - Generally do NOT date a tranx on the 1st day of month; Examples: Tuition due and billing dates should be any date except the 1st day of a month; Semi-monthly pay dates are the 15th and last day of month. Please go to 0069 regarding dates and Hourly payroll. Calendar Year end donations that are post marked in December but actually deposited in January should appear as December deposits in transit, etc. If you use a separate DonaMail package, the same dates, of course, should appear within both set of records/databases. Be especially careful about using this TRUISMs re days/dates at a Ministry's fiscal year end.

Prayerful Thots: (xx)

    Thank you Lord, for the exhortation found in Psalm 92:3 where "we are to praise God upon an instrument of ten strings." Somewhere I came across the following breakdown of such ten strings:
        >> Two eyes to see what You have done,
        >> Two ears to hear Your word,
        >> Two hands to do Your work,
        >> Two feet to walk in Your way,
        >> One tongue to speak Your truth and
        >> One heart/life to give to you, oh Lord .
    Add them up and you have an instrument of ten strings to be used to praise You, Almighty God. Help me, Oh Heavenly Father. In they precious name, Amen

This "Blogger" like monthly endeavor (99) allows me to share some personal comments/thoughts as to Ministry Finance issues plus matters concerning Righteous Personal Finance for Christian people. Please go to 0200 for further explanation and links to earlier JIM's JRNLs. The four digit links xxxx herein come from www.bcidot.org sources.
If you would like to receive the next monthly JIM's JRNL during the first week of the subsequent month, please join the following Yahoo Group: ---- http://groups.yahoo.com/group/JIMsJRNL/. Caution --- the non www.bcidot.org web links that I reference herein do NOT necessarily imply my endorsement. Further, if any of these links do not work, let us know which one at LINK@bcidot.org. Lists of our www.bcidot.org articles (or Web Docs), can be found at 9712. 9716 and 9705.

Probable "Ministry Finance Lingo", or "Frequently Used Vocational Terms" used herein, appear below:

BLVR = Someone who has accepted Jesus Christ as Lord and Savior, CBA = Church Business Administrator, CBAer; CMS = Church Management Software/System; CPA = Certified Public Accountant; GAAP = Generally Accepted Accounting Principles/Practices; GPFund or GPF = General Purpose Fund; MFTeam or MFT= Ministry Finance Team; QBOE = QuickBooks Online Edition; QBooks or QB = Quickbooks; RPFin = Righteous Personal Finance , SPFunds or SPFs = Special Purpose Funds

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This document was updated last on: May 24, 2007