"JIMs JRNL" Edition
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TO: Interested Onliners FROM: Jim Bramer, Retired Auditor-CPA
RE: J I Ms J R N L for the month of May 2009 FILE: 0205-09/jrnl
Our web site www.bcidot.org was established ten years ago. Of course, during this period there has been some significant updates of how we use technology in managing finances .... especially re the use of Computers and the Internet. Please especially note after October 2009 the free eBook information when you Click Here and reference the eBook that is entitled "Journey to be Christian Ministry Finance "Internet Friendly"." Our prayer is that this resource will be effective along these lines.
Nearly every Ministry now has a web site. We did not use the world-wide web/Internet ten years ago like we use it today. Our grand-daughter is a Missionary on the other side of the world -- we Emailed her the other day and got a reply within a few hours ----- Email is such a world wide communication blessing !
From time to time I restrict the contents of a single monthly "J I Ms J R N L" edition to one topic. That is the case during this month of May 2009 as my thrust is that all Onliners should make full use of such God-provided contemporary electronic tools that are outlined below as we use them to be the appropriate steward of money and related fiscal resources. In addition to the Editorial content on this topic found at Click Here, this month's only topic is:
"Ministry Finance Internet Friendly" resources for "Christ Centered Entities" (13)
The definition of "Christ Centered Entities” includes Churches, Missionary Organizations, Christian Schools, and Christian Camps/Retreats. This might also include a “Family Unit” consisting of a single person or a husband-wife plus kids. Ministries include the following:
· “Mom-Pop” Ministries who handle $99,999 (five digits) or less per annum
· “Smaller” Ministries who handle $499,999 (six digits) or less per annum
· “Larger” Ministries who handle $500,000 (six digits) or more per annumThe definition of "Internet Friendly” includes an Onliner with a fast Internet connection who minimally goes there once a day to at least receive and send Email. I am told that almost two thirds of U.S. Household members now use mobile "Lap Top" computers with high-speed fast Internet Online connection. Another factor in all of this is that users of the Internet are divided up in the following age groups:
· Almost three fourths of all people aged 18 to 49
· Nearly two thirds of all people aged 50 to 64
· Some one quarter of all people 65 and older.Suffice to say, there is the technology and the electronic means to do a variety of wonderful things related to "Ministry Finances" at such "Christ Centered Entities. This approach also includes full utilization of trained Homers who function from across the country (or across the street) as they remotely assist them to appropriately care for many of their chores having to do with finance management, etc.
We recommend that you buy as much as possible with Plastic via the eCHECK process (you answer "debit" when they ask you if it is "debit" or "credit" purchase.) Or if you use Plastic and incur debt (you answer "credit" in this case) then you go Online weekly and prudently pay off the balance of your Credit Card Statements and therefore have no Credit Card debt. They also are very comfortable using such means so that after they make a deposit they know (maybe even via their Cell Phone or Black Berry resources) if they have money to spend by going to such reports as found when you Go Here.
Some of these "Internet Friendly” "Christ Centered Entities use such "Ministry Finance" resources whereby they do NOT buy software and place it on their computer. Or they pay a small monthly fee and go directly from their Computer desktop to the applicable Web Based (or Internet) product, etc.
T O O L S
This overall topic reminds me about the meaningful use of "Tools" that I recently experienced. Our son, Don, is a carpenter who recently helped us update some things at our house. It was quickly and efficiently done via the use of his "Contemporary" carpenter tools. I was also impressed recently with "Tools" when we had some trees removed from our property --- the "Lumber Jacks" of these days are much better equipped.
In order to be the very best steward of resources, we must NOT always do things the "Old Fashioned" way. Sometimes we are questioned about using some of the "Tools" available out there today; I sometimes get this message, whether articulated out loud or not: "Let's not mess around with that stuff. Let's just do it the 'old fashioned' true and proven way like we have always done. Seems that many are out of control anyway." Would you like to go across the USA from one ocean to the other via wagon train like in the old days?
MINISTRY FINANCE FEATURES LIST (01)
Most importantly, my prayer is that they will digest all of what has been shared here and then go to the "MINISTRY FINANCE FEATURES LIST" by application below. It is also designed to help them conclude how to leverage these Ministry Finance "Internet Friendly” Tools per their unique setting.
Please be sure you understand the use of a separate combined Computerized People Database that includes Giving record information.
Ideally they would do a "Self Examination" and check off what is appropriate for them per the "Now in Use", "To Place in Use". "Perhaps" and "Not an Option" columns below.
MINISTRY FINANCE FEATURES LIST
RECEIPTS
Now-in Use
To-Place in Use
Perhaps
Not-an Option
1
They come to your own Web Site for such action
and use either Credit or Debit Cards
______
_______
_____
______
______
_______
_____
______
______
_______
_____
______
2
via its own batch proof etc (a)
______
_______
_____
______
(Electronically from their Bank to your Bank)
-- One time
______
_______
_____
______
-- Repetitive
______
_______
_____
______
3
Events Sign up and Payment
______
_______
_____
______
4
Scrip Ordering and Payment (a)
______
_______
_____
______
5
______
_______
_____
______
EXPENDITURES
11
Online Payments
______
_______
_____
______
Via non QBs resources
______
_______
_____
______
By going to Vendor's web site
______
_______
_____
______
Repetitive -- same vendor amount
______
_______
_____
______
Repetitive -- different amount up to certain limit
______
_______
_____
______
Weekly pay off Credit Card (Plastic) Balance
______
_______
_____
______
(Electronically from your Bank to their Bank)
12
Payroll - direct deposit of Staffer's net pay
______
_______
_____
______
(Electronically from your Bank to their Bank)
Use of QB's Payroll system (a)
______
_______
_____
______
Use of Remote Payroll system (a)
______
_______
_____
______
BOTTOM LINE
21
______
_______
_____
______
22
______
_______
_____
______
23
______
_______
_____
______
24
______
_______
_____
______
RELATED MATTERS
30
______
_______
_____
______
31
Do buying Online
______
_______
_____
______
32
Online move Money from one Bank Acct to another
______
_______
_____
______
33
Remote viewing only (a)
Staff access restricted information
______
_______
_____
______
Board members access information
______
_______
_____
______
Auditors access information
______
_______
_____
______
(a) If you need assistance in any of this please contact Jim Bee at Jim@bcidot.org or Brad at Brad@rpfin.org
The "ATF (After The Fact)" System: (02)
"Here" is a method of handling "Bank Activity" for mostly Smaller Ministries as they are encouraged to thoroughly examine what we share in this writing. Some of following does NOT apply to “Larger” Entities, but all should examine what follows in depth:
>> Your computer system does NOT write out your checks, etc. and you process by hand as few checks as possible. You can do this because almost all vendors these days sell via Credit Cards (hereafter referenced as Plastic) and you buy everything possible via Plastic.
>> So you go Online weekly and pay off your Plastic unpaid balance so you do not have a Plastic debt issue. Since you buy via Plastic, your Entity does NOT have vendor charge accounts, like at Christian Bookstores, etc.
>> Then as much as possible all other Bank Paid-Outs (disbursements) are made via an "Online Payment” process --- especially via any Online Payroll system whereby the net pay to Staffers and related settlement of payroll taxes are done Online, etc. This “Online Payment” process also applies to vendor voluntary repetitive checks of the same amounts (samples are: Payments for Rent or for Debt servicing; Payments to a Mission Organizations, etc.) or repetitive checks of variable amounts like Amounts due for Utility costs, etc.
>> You also provide the means for your Constituents to go Online and send you money for one-time or repetitive Donations or to complete an Online Event registration process.CAUTION: Initially it may take a couple of months for these “Online Transactions” to function properly so do not be discouraged if things do not immediately happen like you want – check back thoroughly and be patient!!
>> Further, my experience is that Banks seldom make mistakes in handling transactions that add to your Bank Statement balance or to various transactions that reduce your Bank Statement balance, or such activity is seldom incorrect. Or, in other words, your individual "Money Transaction Records” (or TRANXs, below) are almost always exactly what the Bank says.
T H U S:With all of this in mind, I recommend that you establish a remote Banking relationship with a Bank like, ECCU - Evangelical Christian Credit Union, then take at least the following steps:
Establish at least one Plastic account – perhaps via ECCU resources
Have the appropriate computer software – I recommend older versions of QuickBooks (QBs) Pro
Set up a “Chart of Accounts” therein that meets your unique “Spending Control” needs
Set up as many “Online Payments” as possible
Arrange to accept as many “Online Receipts” as possible
Pursue the possible use of HOMER Onliners who remotely assist you.
Ideally you do NOT manually post any “Money Transaction Records” into your Computer Software. QuickBooks (QBs) Pro (Please discuss with us the possible process when you find it appropriate to have the Computer System write checks, etc).
You arrange with ECCU to at least weekly have the Bank’s “Money Transaction Records” use the Internet to electronically post their detail to your Computer Software (QBs)
Some smaller Entities may prefer to go Online and get the Bank or Plastic equivalent and manually post each "Money Transaction" into your QBs
The above “Money Transaction Records” often include the weekly Plastic payment so there is no need to handle the Plastic transactions in some special way. Since some Entities. however, want the vendor names to appear in the step below, please discuss this issue with us. Also ask us for more information about a recommended overall Plastic buying system.
You weekly verify that these amounts are the same: >> the ECCU’s Bank Balance amount (as if you were working with a weekly Bank Statement) and >> the Bank Balance amount appearing within your Computer Software system (QBs).
When the weekly Internet electronic process above takes place, the emphasis is to capture your Bank Account detail and place it into your Bank Account within QBs. But each “Money Transaction” detail is also offset and posted to a “Pending” account within QBs.
So you weekly go to your supporting internal documents and reclassify each “Money Transaction” appearing in this “Pending” account and see that is goes to the appropriate “Spending Control” accounts per your “Chart of Accounts”. Of course, the “Pending” account is ultimately zeroed out, etc.
Please note the "Spending Controls" report samples below as provided via the electronic "eFINFAX" system. (5)
Click Here for access to the weekly "Point in Time" "BuxBox Balance" report
Click Here for access to the periodic "Point in Time" Photo report
Click Here for access to the periodic "Period of Time" Video - "BuxBox Activity" report
Finance TRANXs (Money Transaction Records) processing Issues
>> TRANXs = Deposit or Check (or their equivalent) information that flows through systems like your
Bank or Plastic (Credit or Debit Card) accounts.
>> USUAL = The normal process whereby TRANXs originate and flow first to your SOFTWARE SYSTEM
and you verify that this activity agrees with the TRANXs that appears within the Bank or Plastic (Credit
or Debit Card) accounts
>> The "ATF" process above whereby TRANXs go through the Bank or Plastic systems first and
then such information is electronically posted via the Internet to clearing accounts within your
SOFTWARE SYSTEM.
>> CH of ACCTS: Your internal accounting “Chart of Accounts” infra-structure and related matters
as you post TRANXs to the Ministry’s Assets, Liabilities, Equity, Income and Expense accounts.
>> SOFTWARE SYSTEM: Accounting software like QBs plus QBOE and Mvelopes (a)
ACTION
"ATF"
USUAL
1
TRANXs are moved
Data includes Payee,
Not applicable
from the Bank to the
Memo info , date and
SOFTWARE SYSTEM
dollar amount
2
Deposit info is assigned
After above TRANXs info
TRANXs are manually
to applicable CH OF ACCTS
is electronically posted
posted first into the Software
into the Software System
System
3
If Checks are written
After above TRANXs info
TRANX s are manually
manually and assigned
is electronically posted
posted into the Software
to applicable CH OF ACCTS
into the software system
System
4
Bank Reconciliation
Not necessary; records
The normal process
show the same balance in
as you determine what has
both sets of records
not yet cleared, etc.
5
Checks are written by the
Yes - and change dates
Yes - as usual
software system and require
for uncleared TRANXs
a TRANX “clearing the Bank/Plastic” process
.
Below are some more of the known merits to this "ATF" system.1. You have the option of NOT manually posting your “Money Transactions” into your Computer Software – it is done electronically, with the applicable completeness and accuracy. CAUTION: You likely will want to manually post some additional internal information for each transaction.
2. Since you do not manually enter any deposit or checks (or equivalent “Money Transactions”) into your Computer Software, you do NOT have to “reconcile” your manually inputted records to that shown by a periodic Bank Statement. Or there is no need for the usual “Bank Reconciliation” process.
3. Since you have a weekly processing emphasis, you are not overly concerned about any “Money Transaction” that have not yet cleared the Bank ---- like “Deposits in Transit” or “Outstanding Checks”,
We MUST prayerfully utilize the latest proven "cutting edge" resources (Tools) out there so we can be the best possible fiscal steward.
More helpful Links on this overall topic:
0907-03 -- Receipt Initiative
0926-03 -- Online Payments
0934-07 -- Small Ministries
0935-07 -- Expense Accrual and eFINFAX
0175-99 -- Application by type of Ministry
5016-02 -- Church emphasis
8016-02 -- Mission Organization emphasis
7016-02 -- School emphasis
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Our usual "Helpful Declarations" for you readers:
Below are some discovered Ministry Finance concerns plus some forthright Scriptural enablements that we have 'gleaned' down through years..... we trust you can relate as you click and link to the actual text of the verse.
Finding money to pay bills is exhausting ---- Isaiah 40:29
This particular financial system is frustrating -- Eph. 2:10
That computer matter is beyond me - I need help!! -- Psalm 37:30
Praise the Lord-we were able to meet payroll!!! --- Psalm 96:3
The General Fund income is more than expected --- Psalm 108:5
That department stayed within the budget and deserved praise; Prov. 16:24
Who !! No one will take responsibility for that obvious over-spending - Isaiah 26:3
We gave to that needy person confidentially - Matt. 6:3
Staying within our income was (and is) hard work - I Cor. 10:31
Editorial - The "Old Fashioned Way" is NOT always the best
Current "Ministry Finance" Truism
Tools can be a terrific blessing when used properly
Prayerful Thots : Lord, my prayer is that this document will contribute to readers effectively using the Internet as a meaningful Ministry Finance management tool, etc. Also that the eFinFax system will "ring bells" with those that need it. In thy 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.
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 Jim@bcidot.org . Lists of our www.bcidot.org articles (or Web Docs), can be found at 9708 and 9709
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
ABOUT US | OUR PURPOSE | TABLE OF CONTENTS | SEARCH MATTERS | HOW WE HELP SPECIFICS | FUND ACCTG VIA COMPUTERS | GLOSSARY
Click Here for information about earlier JIM's JRNLs - or contact me via Jim@bcidot.org
This document was updated last on: September 01, 2010
