Colossians 3:23 -
Whatever you do , work at it with all of your heart, as working for the Lord, not for men.
TO: Interested QBloggers FROM: Jim Bramer, Auditor-CPA
RE: April 2009 edition of QBLOG FILE: qblog/Apr09
This "Blogger" like endeavor allows Jim Bee to share some personal comments/thoughts as to the use of Intuit's QuickBooks (QBs) by Christ-Centered Entities - especially to maintain Spending Controls and to do Ministry Fund Accounting. To me, Christ-Centered Entities especially include: Evangelical Churches, Mission Organizations, Christian Schools, Christian Camps/Retreats plus some of this involve Families in their pursuit of Righteous Personal Finance.
We have closely followed the QBs products since their beginning and believe they are tremendous tools in doing "Ministry Fund Accounting." Please go to 0601 and read our foundational Online document on this topic. When you Click 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.
Please go HERE for more information about this QBLOG endeavor.
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.
We trust you find the following QBLOG content 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. 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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From Onliner:
As I have shared with you, Jim, I own a small business. Personally, I have been tremendously impressed with accounting software at our business. I am the new Board Treasure at our Church where we handle less than $500,000 per annum. From your perspective, Jim, please tell me some more about using accounting software that also greatly helps in a Ministry's caring for its unique fiscal matters.From Jim Bee:
Good .... you will notice when you go to my bio, that I have been involved with accounting matters since the late 1950s. You therefore can image the numerous changes that I have seen and why I am impressed with the virtues of computerized accounting, or accounting software. Particularly when it is used as a meaningful "Ministry Fund Accounting" system which timely provides decision makers with answers to the following "Vital Signs" questions:
How much "pooled" money is on deposit
Who owes us money and how late are they
Are we current with our bills and like obligations
What is the amount (or scope) of donor restricted money
What is the amount of Board SetASide and/or such discretionary money.
Do we have a SPENDING CONTROL system
Are we living within our Operating/General Fund budget constraints
Below is a list of some of what "accounting software" enhances:
Everything is typed (no interpretation of people's hand writing, etc.)
Internet features (Tools and Resources) include the following:
-- Remote processing and/or viewing of its transactions and/or reports
-- Electronic transfer of financial transactions
-- Originating at financial institutions/Credit Cards
-- Directly to your accounting software
-- Online Bill payments;
-- Payroll - use of Online payroll systems i
-- Making direct deposits to employee's bank accts
-- Online receipts; from payer's bank account to
-- The Ministry's bank account, etc.
Receipts Issues - Please notice Donation issues when you Go Here
Disbursement Issues - Type and print out checks; Payroll - deal Online with remote payroll systems especially making direct deposits to employee's bank accounts.
Enhances essential accrual basis accounting issues: Receivables; Payables - Facilitates "Aging" issues, etc
Greatly facilitates the agreement of Subsidiary accounts (for Receivables; Payables) to their Control Account. A basic internal control ingratiate of a quality accounting system.
Enhances the very helpful "Double Entry" process. Please Go Here for more perspective.
-- Both halves of this needed activity readily take place, etc. Or it enables the processing and balancing of financial transactions.
-- Or you enter the dollar transaction once, verify it and then let the system replicate that dollar information to wherever it is needed to accomplish your financial reporting structure and objectives.
It is able to complete or actually do the math for you (i.e., total of a receipt or check is easily and properly distributed, etc); enables you to have needed sub-totals in various reports, etc.
Maximizes the use of graphics like when you type out a check, etc. You type info into a uniform blank form, etc. Within the check itself, it does the needed alpha as well as the numeric amount info
You have at your disposal integrated databases (like payees/vendors/employees) or the means to access needed repetitive information that facilitates transaction processing and reporting.
Allows memorization of like transactions for future use
Permits movement of specified data to computerized spreadsheets
STATEMENT: We need to maximize the use of accounting software at Christ-Centered Entities !
From Onliner:
Jim, I could not agree more. I look forward to working with you as we fully use QBs here at our Church.=============================================================================
(02) Something from the "Present"
Then I 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 and share my current perspective etc.
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Doing "Ministry Fund Accounting" via QBs via Method One
You, no doubt notice when you digest QBs via Method One content that I advocate the use of Method One to do your Ministry Fund Accounting . Factors include the following:
Pluses
Without numerous extraneous bookkeeping entries, your "Balance Sheet (Photo)" immediately shows the status of each Special Purpose Fund - SPFund after posting/processing a single transaction; plus you have access to the QB Class feature for production/reporting of overall or individual SPFund Income Statement (Video) purposes, etc. Please see the sample reports below.
QB Chart of Acct Types Assets: Bank Checking- Savings $ 16,787 Fixed Assets Land Bldg and Equipment Total Assets $16,787 Liabilities: Acct Pay Payables $ 1,689 Fund Balance - Net Assets: Special Purpose Funds Equity Donor Restrictions $ 4,700 Equity Board Discretionary $ 15,774 Total SPFund $ 20,474 QBs GPFund YTD (Loss) $ (5,376) $15,098 Total Liabl and Fund Bal $16,787 Click and see contents of the blue Hyperlinks above GPFund "Income Statement (Video)"
Actual
Budget
Variance
Income
AllElse Income
1,500.00
Donations Income
77,800.00
Earned Income
50,000.00
Total Income
129,300.00
Expense
Salaries and Benefits
57,500.00
57,666.67
-166.67
Supplies and Expenses
47,925.85
48,075.00
-149.15
Debt Servicing
15,000.00
15,041.67
-41.67
FAsset Acquisitions
5,000.00
5,000.00
0
AllElse Expenses
2,750.00
2,758.33
-8.33
Total Expense
128,175.85
128,541.67
-365.82
1,124.15
Cross Funds Expense
6,500.00
6,516.67
-16.67
-5,375.85
Jul 1, xxx0 - May 31, xxx1
First of Year Balances
95,000.00
SPFunds Income
Earned Income
50,600.00
Donation Income
60,400.00
Total SPFund Income
111,000.00
SPFunds Expenditures
Operating Expenses
-116,525.95
FAsset Acquisition
-74,500.00
AllElse Expenditures
-1,000.00
Total SPFunds Expenditures
-192,025.95
Cross Fund Income
6,500.00
20,474.05
Minuses
An overall Ministry''s "Income Statements" for over-view purposes is not available. You need to monthly do something like the following "Big Pix Report " manually using a Spreadsheet; which sometimes is a "Plus" because you can greatly condense and make it a one-page report.
For 11 Months
Special
General
GPF Expenditure
Totals
Funds (SPFs)
Fund (GPF)
Budget To Date
Variance
Revenue:
$138,200
Donations
$60,400
$77,800
$102,100
Event Reimb/Other
$50,600
$51,500
$240,300
Total
$111,000
$129,300
Expenditures:
$57,500
Salaries/Benefits
$57,500
$57,666
($166)
$164,452
Operating Costs
$116,526
$47,926
$48,075
($149)
$74,500
Property Acquisition
$74,500
$15,000
Debt Servicing
$15,000
$15,042
($42)
$5,000
Mission Support
$5,000
$5,000
$0
$3,750
AllElse Expenses
$1,000
$2,750
$2,758
($8)
$0
Cross Funds
($6,500)
$6,500
$6,517
($17)
$320,202
Totals
$185,526
$134,676
$135,058
($382)
($79,902)
Net ($74,526)
($5,376)
Annual GPF Budget
$147,470
Weekly Need
2,836
Begin Balance
$95,000
GPF Income to date
$129,300
End Balance as computed
$20,474
Divided by wks to date
48
"Spoken for" as follows:
Weekly average
$2,694
Weekly difference
$142
Donor Restricted
$4,700
Ending:
Board Discretionary
$15,774
Bank Balances
$16,787
Less: Liabilities
$1,689
Down proof is:
$15,098
TOTAL FUNDS
$20,474
($5,376)
Cross proof is:
$15,098
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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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The proper use of "Debits" and "Credits" in producing "Journal Entries" within QBs --- sometimes can be confusing. This "QTIP", which emphasizes account "increases" and "decreases" via this ALICE document, is designed to identify these peculiarities and assist you in their proper use within various QBs settings.
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This document was updated last on: June 04, 2010