Colossians 3:23 -

Whatever you do , work at it with all of your heart, as working for the Lord, not for men.         

        TO:  Interested QBunchers                                                                FROM: Jim Bramer, Auditor-CPA
                                                                                                                                                                        
   
         RE: June 2009 edition of QBLOG                                                  FILE:  qblog/Jun09                   

            We have closely followed Intuit's QuickBooks (QBs) products since their beginning and believe they are tremendous tools in doing "Ministry Fund Accounting" at Christ-Centered Ministries as described when you go to 0601 and read our foundational Online document on this topic.   When you Click Here  and  Here  you will find more resources about QBs as used by Ministries. Then please go to 0199 where we share how we coach a Ministry along these lines.   We trust you find the following QBLOG material helpful.

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(01)  Something from the "Past"  

        The plan is to update you with something that has happened in the "Past"  as to the use of QBs software for Ministries.  Usually this means that I will share a dialog that I have had at some time with one of you Onliners or my current perspective of my earlier writings 

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TO:   Jim Bramer  - FROM:  Onliner

   I am using QB to set up the books for my church (I was just elected Treasurer).  I have learned a lot about Fund Accounting from www.bcidot.org  and have set up our QBs Chart of Accounts based on information there.
   But I seem to be missing something.  We have a SPFund set up for "Elevator Repairs"  for which we have accumulated money.  We also use only one checking account.  We paid a bill for $1,300 for repairs.
   When recording the check, I am charging my expense account.  But my “Elevator Fund”  is set up as a QBs Equity account per your recommend Method One within 0601-06  within context of the information within 0041-01. 
   What is the offsetting entry for reducing the elevator fund?  Do I need to set up a control account?  Charge an expense or income account?  I am missing this piece.  Please help! 

TO:   Onliner  - FROM:  Jim Bramer:

     In seems that some of the following QB Fund Accounting basics need to be more fully grasped:

     >>  A clearer understanding of how that a non operating activity like your “Elevator Fund” is a  SPFund (Special Purpose Fund as described within 0041-01).  Or it is a QB Equity Account that always shows you how much of the money on deposit (QB Assets) belong to that SPFund (QB Equity account). 

     >>  When you place money into a SPFund account you increase (debit) both the Bank account (QB Asset) and the (credit) named SPFund (QB Equity) ; conversely when you take money out of the Bank account you decrease (debit) that SPFund (QB Equity) as well as (credit) the Bank account (QB Asset).  Be sure you understand the assignment of the type of SPFund Income and expenses to each SPFund transactions via the use of the QB Class feature.

     >>  Of course, when you have a GPFund (General Purpose Fund) deposit then you increase  (debit) both the Bank Account (QB Asset). and  (credit) the named type of  GPFund  Income (QB Income account) ;  conversely when you spend GPFund money you increase (debit) the named type of GPFund (QB Expense acct) expense and as well decrease (credit) the Bank Account (QB Asset).  As to the GPFund, some Ministries use the QB Class feature to specify the particular GPFund operating department.

     >>  Perhaps you would benefit from our discussion with a new Church Treasurer found within:  5091

     >>  Please note sample QB provided reports within:   0719

TO:   Jim Bramer - FROM:  Onliner:

    Let me “chew “ on what you have shared above.  What other “helps” choices do I have if I still need help from you?

 TO:  Onliner - FROM:  Jim Bramer::

Other Onliners have been blessed in this overall effort when they get permission from their leaders and we make use of the Internet collaborative effort described when you go to:     0130

TO:  Jim Bramer - FROM:  Onliner:

Wow --- that would be great !  Both of us would be able to look at the desktop and you follow my entries to the QB system and comment via my phone call on what I am doing and what I have done to date.

TO:  Onliner - FROM:  Jim Bramer::

I look forward to the next step.

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 (02)  Something from the "Present"  

        I also want to share  something that is a "Present"   issue on the overall topic of using QBs software at Christ-Centered Entities. Usually this means that I will either edit one of my  writings  or a dialog that I have had some one of you Onliners.

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TO:   Jim Bramer  - FROM:  Onliner

     Greetings, Jim.  I just learned of your web sites today, or let me share to you via this  Jim@bcidot.org   email that at home I have checking accounts where I try to keep a real estate tax fund, a withholding fund, an emergency fund, a tithe fund as well as the regular fund.  I have access to the QuickBooks (QBs) software.

TO:  Onliner - FROM:  Jim Bramer::

          Great!   It sounds as if you are in essence maintaining records and working with the respective balance in each of the funds that you mention above.   When a fund has a balance you can spend - or the system is a different type of Budget or SPENDING CONTROL  system.   Please  LINK HERE  and learn about this envelope type method that I call the BUXBOX system.  

TO:   Jim Bramer 

   Thank you for sharing the above link contents, Jim.  I want to get things in order so both my wife and I can get a better grasp of our finances.   It is very difficult for her to reconcile our check books with all the monthly gymnastics that I do at this time to maintain our present fund balance system. 
   I take it that this BUXBOX system lets us keep one checking account rather than going to five checking accounts as we make deposit to each, pay bills within each and then reconcile these five accounts.  Is there any way of doing this more efficiently within QBs? 

 TO:  Onliner - FROM:  Jim Bramer:

          Yes there is.  That you for sharing as both of you obviously need to keep these records and know such information so that you have a regular status report that looks something like this: 

One Bank Balance

                     3,742.34

     

BuxBox Balances

  
 

Real Estate Tax BuxBox

                         500.00

 

Withholding BuxBox

                         250.00

 

Emergency BuxBox

                      1,254.35

 

Tithe BuxBox

                         250.00

 

Regular BuxBox

                      1,487.99

     
 

    Total

                      3,742.34

     

 TO:  Jim Bramer - FROM:  Onliner:

      What steps would we take using QBs to use only one Bank Account and a report like this?

  TO:  Onliner - FROM:  Jim Bramer:

          Please consider the following: 

--  Get a good grasp of  these link  contents:  BUXBOX  and eFINFAX  --  --  Set up a new QBs Company
--  Within context of this   QB-METHODS  link contents,
--  You set up your QBs "Chart of Accounts" so that the each of the above BuxBoxes is a QB Equity account some what like we have set forth for a Ministry via the indicated QBs Method 3.
--  As mentioned within eFINFAX , you Online pay off your Credit Card balance weekly and you make full use of the means to have your Bank electronically send their transactions to your QBs system.  You then assign such transactions to the applicable BUXBOX.  
--  You might also look into the eFINFAX   ATF (After the Fact) process whereby the weekly  QBs Bank balance and your Bank Statement balance is always the same …. no bank reconciliation, etc. 

TO:  Jim Bramer - FROM:  Onliner:

    This all sounds terrific,  Jim.  Both of us would know what fund belongs to this one Bank balance so we can live within our personal finance boundaries, etc.  Particularly as we get weekly BUXBOX status reports so we know if we have money to spend during the next week, etc.  
    But how do I get periodic transaction details and totals for such purposes as annual tax deduction purposes, etc.?

 TO:  Onliner - FROM:  Jim Bramer:

           Thank you for asking about such important matters …..  

--  Within QB preferences you enable the system to use QBs Classes
--  After that choice, then each transaction asks you for a QBs Class entry.
--  The use of the QB Class feature provides you with "why did the BUXBOX balance change"  transaction detail and balance info.  Examples are:  00-Begin Bal  10-Income by type   20- Tax deductible expenses by type 50- All Other expenditures by needed type, etc..  Of course, the final  total of this report would equal to balance in your Bank, etc.  Let me know if you would like to review a sample report. 

TO:  Jim Bramer - FROM:  Onliner:

      Wow that sounds great !  Can you remotely assist me in any of this, Jim ?

  TO:  Onliner - FROM:  Jim Bramer:
        
          Yes … please digest the link content of QBs COACHING  and then let me know if you have any comments or questions.

TO:  Jim Bramer - FROM:  Onliner: 

      Thanx ever so much, Jim   ----  I will get back to you soon.

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(03)  This Month's "Q-TIP "

     And finally, I want to share some 'how to" suggestions, or tips, that I trust you will find helpful as you use QBs software at Christ-Centered Entities.  

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      In this Q-TIP found at 0637  we cover the use of proper dates in the accounting process as they are important for clear and consistent reporting.  This provides information about the following entry dates:  End of an Accounting Period, End of the Fiscal Year, Account Payables and Payroll.
 

          This "Blogger" like monthly endeavor allows me to share some personal comments or thoughts as to the use of QuickBooks (QBs) by Ministries - especially to do  Ministry Fund Accounting .  Please go  HERE  for more information about QBLOG.   
           If you would like to receive this monthly during the first week of the subsequent month,  please join the following Yahoo Group:   ---- http://finance.groups.yahoo.com/group/qbunch/ .    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 . 

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Update last on:   June 04, 2010

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