Accounting question about missing money

[oursaviors2017]

Hello!

Our church has had an unfortunate situation. Some of our petty cash money is missing ($90). The details of its cause and future policies regarding petty cash are being worked on. But my question for Power Church users is: how should we account for the missing funds within Power Church. My hunch is that we should just create a new account named "missing petty cash" or something like that, and enter the $90 there. Any suggestions about how to account for the funds within Power Church would be much appreciated. We use Power Church version 10.4 and a relatively new version of Microsoft Windows. Thank you.

[NeilZ]

Hello!

Our church has had an unfortunate situation. Some of our petty cash money is missing ($90). The details of its cause and future policies regarding petty cash are being worked on. But my question for Power Church users is: how should we account for the missing funds within Power Church. My hunch is that we should just create a new account named "missing petty cash" or something like that, and enter the $90 there. Any suggestions about how to account for the funds within Power Church would be much appreciated. We use Power Church version 10.4 and a relatively new version of Microsoft Windows. Thank you.

Well ... this is an unfortunate occurrence. That said, unless you want to carry that 'missing petty cash' account for the amount of time the IRS requires history (about 4 or 5 years), what I would do is use any MISCELLANEOUS expense account you currently have under Administration/Office/Finance or the like.

However, I would put as much information in the Note Block of the transaction entry screen as possible so that an audit trail is covered, and for the Check/Desc something like Exp Missing Pty Cash and a description of Missing Pty Csh Expense.

This would clear the money from the petty cash account, as well as show why this was done.

I hope you do have a petty cash account that you would then Credit, and Debit the expense account.