QB Schar (qbSchar)  Acctg System   0658-07  ZZqbb

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                 TO:  Interested School Ministries                                                                                     FROM: Jim Bramer, Retired Auditor-CPA
                                                                                                                                                                    FILE:  0658-07/qbb

                  RE:  QB Schar (qbSchar) Accounting System                                                              Originated:  October 1999 

                What follows is a recommended QuickBooks  � (QB)  Schar Accounting System.

System Objectives

  •     To maintain records for all amounts due from and paid by Parents(1) for such things as annual and monthly Tuition and Fees. Fee examples include: Registration, Late Charges, periodic Class Fees, Book Charges and applicable fees for Pre-School, Summer Day-Care, plus Before/After School care.

  •     Provide the necessary information so Parents have information for applicable Day Care tax deductions. Click here for more info.

  •     Be able to reflect Tuition and Fees income as earned ..... not when paid by the Parent. Click here for more info.

  •     Have timely information for assessment of Late Charges and for follow-up on late payers.

  •     As necessary, be able to estimate uncollectible Tuition and Fees Income. Click here for more info.

System Methods and Procedures

  1.    Set up a qbSCHAR account for people responsible for the payment .... to ultimately include all applicable information needed to deal with the Parent (sometimes Students themselves are responsible) as to payment of Tuition and Fees.

  2.     As part of the Registration process and from the Tuition and Fee understanding/agreement, enter all monthly payments (do not make entries dated the 1st day of a month) into the qbSCHAR accounts as post dated entries. No need for a QB invoice ....... post directly to the qbSCHAR Account and ultimately only render a QB Statement.

  3.    This data will flow through the QB system as Earned Income as per the post dated entries.

  4.    Provide the Parent with a qbSCHAR system produced Registration Statement. This might replace any monthly payment coupon book now used by Parents to make payments when due.

  5.    Parents who pay for entire year up front then have prepayment balances in their qbSCHAR account. The prepayment balance is 'eaten away' as income is earned..... see above. During the year this prepayment appears as a credit balance in the qbSCHAR Account. We recommend a separate Prepaid qbSCHAR Control Account as it appears as an asset offset during the year. This is an actual liability, and it might be necessary to temporarily show it as a liability on periodic reports to out-siders.

  6.    Monthly Payments are posted and processed into the qbSCHAR system per the dates received.

  7.    On any chosen date, produce a qbSCHAR-Age report so dated and discover who has not paid as agreed .

  8.    Monitor these reports and assess applicable Late Charges.

  9.    Monitor these reports and follow-up to insure that payments are made as agreed.

  10.    When Parents have not paid when agreed, they are borrowing from the School. Click here for information concerning means of School assistance and non-school alternative borrowing methods/or sources.

    (1) Parents means anyone accepting this obligation.

       Please Click here for more topics having to do with the use of "QuickBooks and Ministry Fund Accounting"  on www.bcidot.orgThe bulk of this Publication originated in  October 1999 and was.  UPTD: March 09, 2012