Net Asset Checking not matching Bank Statement

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cmdouglas0330
Posts: 5
Joined: Wed May 27, 2020 5:13 pm

Net Asset Checking not matching Bank Statement

Post by cmdouglas0330 »

I have a few questions: I have entered all contributions and expense transactions but when I run the report for the Balance Sheet; my Checking Asset does not match my end of the year banking statement. Is this normal? Or have I not entered some entries incorrectly. Ex: My end of the year banking statement is 50,000 and the Checking account shows to be 48,521.50. We have 2 accounts: Main Checking for Fund 01 where ALL contributions roll into; and a Savings for Fund 02 (Building Fund). Since Building Fund 02 is already restricted (separate account) I am wondering if I have entered the release from restrictions correctly. I have gone over each transaction from the banking statement and they all have been accounted for which leaves me puzzled by the discrepancy. One other question...when I release from restrictions...ex: from Fund 01 to Fund 02; should the report show a negative amount "and" a positive amount under Fund 01. The Negative from the Restricted Fund: Building and the Positive for the Restricted Release.

NeilZ
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Joined: Wed Oct 08, 2003 12:20 am
Location: Monett MO
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Re: Net Asset Checking not matching Bank Statement

Post by NeilZ »

cmdouglas0330 wrote:
Sat Apr 03, 2021 11:17 pm
I have a few questions: I have entered all contributions and expense transactions but when I run the report for the Balance Sheet; my Checking Asset does not match my end of the year banking statement. Is this normal? Or have I not entered some entries incorrectly. Ex: My end of the year banking statement is 50,000 and the Checking account shows to be 48,521.50. We have 2 accounts: Main Checking for Fund 01 where ALL contributions roll into; and a Savings for Fund 02 (Building Fund). Since Building Fund 02 is already restricted (separate account) I am wondering if I have entered the release from restrictions correctly. I have gone over each transaction from the banking statement and they all have been accounted for which leaves me puzzled by the discrepancy.
This is normal. The Program will show the account as of the date. You probably have a few outstanding checks that have not yet cleared the bank. I suspect that if you look at your reconciliation for Dec 2020, you'll find that there are outstanding checks to the tune of 1478.50.

This is why the end of month bank statement will probably never reflect the current status of the account as of the end of the month (unless its an account rarely used). It only goes by what has cleared the bank. Powerchurch reflects all transactions made in the checking account but not cleared by the bank. Think of it as your home check register. It shows what you calculate as available, if you forget to add an ATM withdrawl, the register is off by that amount. When you reconcile you can make an adjustment, however, that usually means subtracting that withdrawl after you've already written checks that have not cleared the bank.

Unless you're careful, you can be overdrawn, that doesn't (shouldn't ??) happen with Powerchurch as it shows the current status at all times. That is, if you remember to add any automatic payments or EFT withdrawls to the account.
One other question...when I release from restrictions...ex: from Fund 01 to Fund 02; should the report show a negative amount "and" a positive amount under Fund 01. The Negative from the Restricted Fund: Building and the Positive for the Restricted Release.
OK ... if I remember you're transferring the funds to 02, right? Yes, it is also normal to see that as you're moving from one net assets account to the unrestricted net assets account. If you notice they balance and do not add to income or expenses, which is correct, but it also provides visibility for the release. You'll also noticed on the I&E report that they are reflected under their own header for restricted releases.
Neil Zampella

Using PC+ since 1999.

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