Hi Everyone.
First of all we are in Canada and we purchased PowerChurch on the advice of a local accountant about 2 years ago to replace the Quicken that was being used. Today we are still using Quicken as we haven't gotten all of the kinks worked out.
We have used the service of someone else to get it configured and so we are at our last sticking point and hoping that someone can help us figure out this issue.
When there is a Sunday School event such as bowling, we collect the admission fee from all attendees in advance and then issue a single payment usually by cheque to the bowling alley (Vendor). The bookkeeper wants the money collected to be deposited into the Children's Ministry expense account and then by way of cheque spent out of the same account. She does not want it to be entered as a contribution, because it is not a contribution and there should be no tax receipt issued for that amount.
Oh and when we collect it all, we want to include it in our deposit to the bank on Sunday.
AndyA wrote:Hi Everyone.
First of all we are in Canada and we purchased PowerChurch on the advice of a local accountant about 2 years ago to replace the Quicken that was being used. Today we are still using Quicken as we haven't gotten all of the kinks worked out.
We have used the service of someone else to get it configured and so we are at our last sticking point and hoping that someone can help us figure out this issue.
When there is a Sunday School event such as bowling, we collect the admission fee from all attendees in advance and then issue a single payment usually by cheque to the bowling alley (Vendor). The bookkeeper wants the money collected to be deposited into the Children's Ministry expense account and then by way of cheque spent out of the same account. She does not want it to be entered as a contribution, because it is not a contribution and there should be no tax receipt issued for that amount.
Oh and when we collect it all, we want to include it in our deposit to the bank on Sunday.
I really hope someone can help me.
Normally you do NOT add funds to an expense account, I'm surprised the accountant actually said that. Churches are cash based, not accrual like a business.
What I suggest is that you deposit the funds, but reflect that deposit in a Restricted Income account, so you can then track how much came in. In a restricted account these funds cannot be spent, and are tracked in a separate fund balance account (equity) and it shows up on the I&E report as well as the cash management report.
You then write the check debiting the expense account, but crediting the checking account, but RELEASING the restricted funds In this way you know exactly how much you're spending each month, and have a YTD tracking. If you don't you will only see a zero expense or a Negative expense which is not reality. You also know exactly how much you have released for this each year, and if there is any of the amount not being spent.
