QB Running Parallel - Switching to - 0608-06 ZZqbb

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                  TO:  Interested Ministries                                                                                                        FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                                                         FILE:  0608-06/qbb

                  RE:  QB - Running Parallel - Switching to                                                                           Originated:  April 2002                     


          Below is a hypothetical Online Email thread (THRD) between  Jim@bcidot.org  and one of the these Ministry MFTeam members: PAT (Ministry Executive), LEE (Ministry Volunteer Treasurer), and FRAN (Ministry Computer Bookkeeper).  


From:  Fran  - 

        Hi, Jim ..... thank you again for providing help to our  Board Finance Committee  as we have been evaluating our finance administration, etc.  We especially appreciate the help that you provide via the internet as indicated by the web pages when we   Click One  and   Click Two.  Thank you.
        We have concluded that we want to change from our present bookkeeping system to the latest version of QuickBooks.  Some of our perspective includes:
            >>  I am the paid internal full time bookkeeper/accountant ... actually my title is  Finance Administrator
            >>  Our fiscal ended June 30 and, as you know, it is already October.
            >>  We will not change from our database where we track people and their giving.

From:   Jim@bcidot.org  

                Thanx, Fran.  I generally recommend that under circumstances like yours that you do two sets of QBooks .....one the old way and then one via the new way,  via   QB  in this case.  Usually this is quite a bit of extra work, but you no doubt have already done your July, August and perhaps September postings, etc.
                I refer to this process as running
  PARALLEL; some may use the term doing a  CONCURRENT set of QBooks.

From:  Fran  - 

        Right on .... sure glad I do not have to do QuickBooks and the old way at the same time, but It no doubt is very doable.  Give me some more rationale for the need to run  PARALLEL,  etc, Jim.

From: Jim -

                Things like the following come to mind ..... 1>  One objective is to insure that the Ministry's new system is equal to or better than the old (kinda obvious, right, or you wouldn't be making the change).  2> This usually means that the infrastructure of the new accounting system will be different ... usually beginning with a revised Chart of Accounts. 3>  This often begins with the new way you will be handling your Special Purpose Funds   (SPFunds)   4>  At the same time certain assets like your Bank Balance will  not  be any different ... the same deposits and checks will hit the bank, etc.

From: Fran

        How true .....  right after we have done all of our posting. we are really looking forward to being able to answer the question of  "Who belongs to the money in the common bank account?"    Or,  we will not have to process a bunch of filtered reports etc to get such vital management data.
      

From: Jim -

                This is true .... but please bear in mind that the reports that you have already generated from your old system for January forward will  NOT  appear like what QB will provide.  Remember -- it is essential that you have the same bank reconciliation results from both set of QBooks, but there is not an absolute right or wrong in the way you classify Income/Receipts and, particularly, Expenditures
                Or a Trial Balance (A balanced list of accounts showing the current or 'year to date' amounts)  from the old set of QBooks likely will not agree with the Trial Balance resulting from the QB transaction processing, etc.  You will even remember that I recommended that you attempt to make your new set of QBooks via QB be more concise by combining certain expense types and, for example, reducing your numbered Chart of Accounts from six digits to four, etc. Also we discussed restructuring how you accounted for money that came to the Ministry for designated purposes; from either your constituency or Board transfers from their discretionary money.  These issues will also affect your comparative Trail Balances.

 From: Fran -

         OK, then again, since they are going to be so much different, why bother with two sets of QBooks? 

From: Jim -

                Well, my experience has shown that when you run  PARALLEL  for two to three months you will discover things that you had not thought about and such a process will greatly enhance the entire conversion endeavor.  When you encounter variances, you, and perhaps the   MFTeam,   will have to decide the desirable action in view of what you want the new system to provide.  The emphasis should be improvement as provided, hopefully, via the new system and  not  'this is what we have always done, etc."

From: Fran -

        How can you help us in these matters, Jim

From: Jim -

                 As explained more in depth in   Link One;    Link Two;   Link Three,  we can exchange QB files with you as I offer some suggestions in the received QB file and return it to you where you decide to make the suggested changes to your QB file, or you even use the latest QB file sent to you for your future use.  Remember, for the reasons stated above, this will not necessarily be the same as your old set of books, etc.
                Often you encounter something that you do not know how to code within your new Chart of Accounts structure.  We recommend that you set up a  "199-TO CLASSIFY LATER"   QB Other Asset  account that you post such transactions to temporarily and then we together clean up later.
                We can also invite you to our desktop where we can together look and converse about the latest QB file results appearing on our desktop, etc .

From: Fran -

        Very helpful, Jim, we will be in touch. 


      Please Click here  for more topics having to do with the use of "QuickBooks and Ministry Fund Accounting"  on www.bcidot.orgTthis document which originated iApril 2002.that was UPTD: March 09, 2012    Click here and go to List of FAQs at www.bcidot.org     

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