How to handle multiple checking account...

[gospeltab]

We currently have our general checking account which has been running on power church for 2 years. Our benevolence account, missions account, and youth group account all have separate checking accounts (operated by 3 different individuals) that we would like to consider pulling into power church so everything is more accessible for reports, accountability, etc. What would be the best way to set something like this up?

Thanks!

[JohnDMeyers]

You can continue to operate 3 separate checking accounts, or you can put all the money into one checking account, and let PowerChurch keep track of the different amounts.

We found it easier to combine most things into one account. Our church schools still operates from a separate checking account, mostly because the money doesn't come in on Sunday mornings, and it operates over the school calendar instead of the regular calendar.

That being said, I would recommend setting up a separate Accounting Fund for missions. It's optional to have a separate Benevolence Fund, but I will assume that you will set up a separate one. The youth account can operate out of the General Fund.

You can create Fund 02 for missions and Fund 03 for Benevolence and copy the chart of accounts from the General Fund, and make additions and deletions as necessary.

If your General Fund checking is 01-1110-000, and you keep all your checking accounts as they are, you will need to create different account numbers in the respective funds:
ADD Detail Asset Level 4, 1120-000 missions checking (02)
ADD Detail Asset Level 4 1130-000 benevolence checking (03)

To enter $1000 into missions checking for beginning balance:
DB 02-1120-000 missions checking $1000
CR 02-3110-000 unrestricted net assets $1000

(Assuming Benevolence is unrestricted)To enter $800 into missions checking for beginning balance:
DB 03-1130-000 missions checking $800
CR 03-3110-000 unrestricted net assets $800

To enter the Youth amount, you should set up at least one youth income account and one youth expense account (I think we have several based on the different activities)
ADD Detail Income level 4 4180-000 Youth income (01)
ADD Detail Expense level 4 5180-000 Youth expense (01)

To add the youth beginning balance of $200:
DB 01-1110-000 checking $200
CR 01-4180-000 youth income $200

Let me know if my assumptions aren't applicable, or if you have other questions.

[gospeltab]

Thanks for your response...I do have a few more questions.

You said that I can copy and paste the chart of accounts and then add or delete as necessary. If I create fund 02 as Missions, would I be able to delete all bank accounts except the checking account specifically for missions? I am also assuming I can delete all fixed assets and liabilities. Keep the Unrestricted net assets. For income could I just have the income categories relevant to missions? In terms of expenses...could everything be deleted except for the missionaries who we give to? Will this be a problem in terms of printing reports for the board if the chart of accounts are not identical?

Our general checking account is 01-1110. You said to:
ADD Detail Asset Level 4, 1120-000 missions checking (02)
ADD Detail Asset Level 4 1130-000 benevolence checking (03) Is this in the 01 fund?

For the Missions account you said to:
To enter $1000 into missions checking for beginning balance:
DB 02-1120-000 missions checking $1000
CR 02-3110-000 unrestricted net assets $1000

At this point this is a totally separate checking account with different check numbers, etc. so when we get money for missions in the general offering I write a check to Missions and it is deposited in their account. She then writes checks to the missionaries every month. With this fund set up, I would actually transfer funds from 01 to 02 instead of writing a check. But I would still need to actually write her the check to get the money into the other account. Is there an easier way to make this work or am I just not understanding the process clearly?

You also said to have the youth account operate out of the general fund. Probably a really good idea, but I am not sure they are going to want to give up their account. If that is the case I would at least like to be able to track it on Powerchurch. The youth director who keeps the checkbook is retiring at the end of this school year so I would like to have something in place for whoever takes over. Would it be better to not have the checkbook and just get them a church credit card for when they do activities?

I hope these questions make sense. I am trying to wrap my brain around the best way to make all of this work.

Thanks again!

[JohnDMeyers]

I am assuming you want to keep your missions checking account separate from your general fund checking:

You said,
With this fund set up, I would actually transfer funds from 01 to 02 instead of writing a check. But I would still need to actually write her the check to get the money into the other account. Is there an easier way to make this work or am I just not understanding the process clearly?

If you want to transfer $150.00 from General Fund (01) to Missions Fund (02), you need to show a check cut in the General Fund (01) and a deposit in the Missions Fund (02) like this:

Add a transfer account in the 9000 range:
ADD Detail Transfer 9010-000 missions transfer (add to Funds 01 and 02)

Check cut from General Fund:
CR 01-1110-000 checking $150.00
DB 01-9010-000 missions transfer $150.00

Receive the check and deposit into missions:
DB 02-1120-000 missions checking $150.00
CR 02-9010-000 missions transfer $150.00

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Concerning the youth checking:

They can keep their own checking account. Just use some other account for the youth checking in the General Fund, like 01-1102-000 for the checking account number instead of 01-1110-000.

[gospeltab]

What should I do about outstanding checks? I am getting ready to enter the Benevolence info and we have about a dozen uncleared checks. Can I add the total of those checks to the beginning balance and then "write" the checks to the account?

Thanks!

[JohnDMeyers]

that's what I would do!