New Fund?

[FBCW]

Our church is currently beginning the process of constructing an addition. To keep finances clear and defined the committee decided that the church should open a new checking account at a different bank than our current accounts, using the funds from the designated building fund. The plan is to make out a check for the amount received each week to the building fund and deposit it into the new account and to use this for all construction expenses. I think that to keep a clear separation of the accounting that I should set up a new accounting fund besides the "general fund" that we use for everything else and use this new fund for the new checking account, expenses, etc. I am unclear on how to go about this. I appreciate any advice.

[NeilZ]

Our church is currently beginning the process of constructing an addition. To keep finances clear and defined the committee decided that the church should open a new checking account at a different bank than our current accounts, using the funds from the designated building fund. The plan is to make out a check for the amount received each week to the building fund and deposit it into the new account and to use this for all construction expenses. I think that to keep a clear separation of the accounting that I should set up a new accounting fund besides the "general fund" that we use for everything else and use this new fund for the new checking account, expenses, etc. I am unclear on how to go about this. I appreciate any advice.

FWIW ... the idea of using a different checking account, is overkill as Powerchurch can maintain separate Accounting Funds under one checking account very easily. The money flow is very obvious, since all proceeds for the building are listed as income under the separate fund, as is any check written will use the expense account under that fund.

However, since it appears that they want to make it harder than it is, you add a new accounting fund by using the Maintain list of Accounting funds. You'll click on the ADD button, and it will ask you for a 2 character fund identifier. You can use numbers, letters or a combination. It will also ask for a Description. You can then select whether you want to copy accounts from an existing fund. I recommend you do so, as you can then select what you want and what you don't want. You'll want to include the existing headers as needed, but then choose the detail accounts as required. For the checking account you do not want to select that to include as you're going to have to create a new account number for it, I'd use 1120-000 .. you'll do that after you finish this setup. As far as the rest, you'll want to include the liability headers, but not those accounts, same as for the Net Assets, you can include the usually 3110-000 account, but only the headers for the restricted assets in case they're needed later.

Include what income accounts you want to include, along with the expense accounts. This is going to be based on what you believe you'll need initially, you can add accounts later. That should get you going.

However, on the operations side, I would create a Building Fund Liability account, and have any Contribution Fund for building point to that account. You would then write the check from Operations using that as the debit account. It would then not show as OPERATING income. When you deposit that check in the other account, you would reflect the income in the Building Fund.

(Opinion) - not keeping this second checking account at the same bank makes it harder to maintain, as if you had it at the same bank, you could easily transfer the funds between the accounts using online banking.

[FBCW]

Thanks. I will give this a shot. We haven't been using the accounting side of Power Church for long and none of us have really mastered it yet. I appreciate the advice.