Accounting/Timing Question

[Heidilr1]

Our fiscal year runs 10/1-9/30. At the beginning of this fiscal year (10/1/2010), we paid payroll on 10/1. However, it drafted the bank on 9/30. So, in reconciling our bank statements, I would not record this withdrawal. Yet for our financial reporting, I believe I would need to show this, as the check date was 10/1. How would I record this in Powerchurch? I want to reconcile accurately, but also want to reflect payroll accurately in reporting.

Thank you - this has been bugging me for quite some time!

[NeilZ]

Our fiscal year runs 10/1-9/30. At the beginning of this fiscal year (10/1/2010), we paid payroll on 10/1. However, it drafted the bank on 9/30. So, in reconciling our bank statements, I would not record this withdrawal. Yet for our financial reporting, I believe I would need to show this, as the check date was 10/1. How would I record this in Powerchurch? I want to reconcile accurately, but also want to reflect payroll accurately in reporting.

Thank you - this has been bugging me for quite some time!

Just to clarify, I take it that this is an electronic payment ??

[Heidilr1]

Yes. We use a payroll service, and they automatically draft it out of our account.

[Jeff]

I would go ahead and enter the payroll with the 10/1 date. You might have a slight problem when you go do your bank reconciliation for September since this crosses months. If this is the case, there is an option at the top of the reconciliation to show transactions dated after the statement date. It will then show you the 10/1 check.

[Heidilr1]

Since we started using Powerchurch in 10/10, I don't have the reconciliation for 9/10 in there. Will it not mess up my reconciliation for October?

[NeilZ]

Since we started using Powerchurch in 10/10, I don't have the reconciliation for 9/10 in there. Will it not mess up my reconciliation for October?

Have you already reconciled October yet ??

[Heidilr1]

Yes, but I didn't put the payroll entry in. Long story, but am now trying to clean all this up. Not been an easy year. So, now trying to figure out what to do with that payroll drafted 9/30 and check dated 10/1.

[NeilZ]

I would do what Jeff suggested, enter the payroll as of 10/1

[Heidilr1]

And reduce my cash (credit in the entry)? Then how will that reconcile?

[NeilZ]

And reduce my cash (credit in the entry)? Then how will that reconcile?

Then I take it you took the payroll into account when you entered your checking account beginning balance ??

[Heidilr1]

Yes. So should I go back and change the beginning balance to not include it, then record the entry, then clear it???