Deposit question

[CJ]

We have been using the contribution side for some years now but we are just now settting up the accounting side to begin using it. I have a question about the deposits transferring from the contribution side to the accounting side.
99% of our income comes from contributions but on occation there may be money coming in from another source I think I understand (correct me if I'm wrong) other income would be entered in under accounts recievable. My question is..... if this money is deposited in the bank along with the contribtions...will it show up in the system as one deposit or will it appear as two?
Maybe I'm getting ahead of myself but I am trying to establish guidelines for our church and I am trying to avoid future problems.

Thanks so much!
Carla

[NeilZ]

We have been using the contribution side for some years now but we are just now settting up the accounting side to begin using it. I have a question about the deposits transferring from the contribution side to the accounting side.
99% of our income comes from contributions but on occation there may be money coming in from another source I think I understand (correct me if I'm wrong) other income would be entered in under accounts recievable. My question is..... if this money is deposited in the bank along with the contribtions...will it show up in the system as one deposit or will it appear as two?
Maybe I'm getting ahead of myself but I am trying to establish guidelines for our church and I am trying to avoid future problems.

Thanks so much!
Carla

We make sure that contributions are deposited separately from other deposits. All we do is create separate slips and use a separate envelopes. This way the bank shows two deposits, and the bank statement will reflect that.

In this way, we account for the contribution deposit; which automatically flows from the contributions side to the accounting side during the Post Contribution function runs, and the deposit entry made by the Treasurer in Accounts Receivable.

[Matt]

I agree with Neil in that you should make two deposits to keep the contribution and non-contribution income segregated. However, unless your non-contribution income is coming from true accounts receivable for which you have sent an invoice to a customer, I would recommend entering the non-contribution income as a deposit entry in Fund Accounting.

[CJ]

Thank you both so much. You just don't know how helpful you have been during this perpetually learning period!!!

And Matt thanks for the tip with the deposit entry I beieve that will be a much better way.

[CJ]

When suggesting to the finance commitee that we begin seperatly depositing contribution income and other income I was shocked to hear that our bank only allows one deposit per day. Is this common? The alternative that was suggested was to give these income sources envelope numbers (such as Mr. Tape for tapes sales) I was thinking another alternative would be to make only one deposit but I record it on PCP as 2 but I'm wondering if we would run into a problem in the long run that I am not considering. Does anyone else have this problem? or Does any one have any suggestions for me?

[NeilZ]

When suggesting to the finance commitee that we begin seperatly depositing contribution income and other income I was shocked to hear that our bank only allows one deposit per day. Is this common? The alternative that was suggested was to give these income sources envelope numbers (such as Mr. Tape for tapes sales) I was thinking another alternative would be to make only one deposit but I record it on PCP as 2 but I'm wondering if we would run into a problem in the long run that I am not considering. Does anyone else have this problem? or Does any one have any suggestions for me?

Sounds like you have a very basic checking or money market account. We often make two or three different deposits over the weekend, dropping the deposits in the overnight drop.

I would suggest to the finance committee that they look at better banking alternatives. We deposit into a Money Market checking account, which our Treasurer then transfers money out of as needed into the account used to pay bills and payroll.

We actually get quite a bit of interest out of that account that we use toward our ministries.