User Support Forum

Our church uses 2 checking accounts. One is considered the "General checking account", the other is considered the "Designated (or Restricted) checking account". This 2nd account is broken into all the different Contribution Funds (Building fund, Vacation Bible School, etc...)

But this is how the money flows - the entire Sunday offering (general and any restricted offerings) are deposited into the "General Checking Account". (They keep a list of all the restricted amounts). Then on Monday or Tuesday, the treasurer writes a check from the General checking account into the Designated checking account to transfer the money.

I'm not sure how to set this up in PC+. I would like to have it show all the Temp Restricted totals -and that would equal the bank balance of the 2nd checking account. But I also want to be able to reconcile the bank statements of the 2 accounts and show the money moving back and forth.
And when someone enters the Contributions, I want them to be able to specify the restricted accounts that get those contributions.

When I set up the Contribution funds - do they debit checking acct #1 or #2? When I enter the check that is written to move the money, does that affect the restricted accounts?

Thanks so much for any advice!
Lee-Ellen

LeeEllen wrote:.

I'm not sure how to set this up in PC+. I would like to have it show all the Temp Restricted totals -and that would equal the bank balance of the 2nd checking account. But I also want to be able to reconcile the bank statements of the 2 accounts and show the money moving back and forth.
And when someone enters the Contributions, I want them to be able to specify the restricted accounts that get those contributions.

When I set up the Contribution funds - do they debit checking acct #1 or #2? When I enter the check that is written to move the money, does that affect the restricted accounts?

Thanks so much for any advice!
Lee-Ellen

Ellen,

We do this the same way at my old church, all contributions go into the money market checking, where its held (making some interest) until its transfered to the one used to pay all the bills. The treasurer has an automatic transfer setup at the bank to move money over every month, and she'll do some manual moves online when necessary.

In contributions, you setup the contribution funds to DEBIT your General Income account, and credit the proper income account which is then paid out of the funds you transfer to the second checking account. You should not debit the second account on any of the contribution funds.

The only reconcilation on the first account is to show the deposit to the bank, and the transfers to the other account. The second account shows the transfers, and all the checks written to pay the bills.


Hope this helps.

I'm not sure I understand you completely - tell me if I have this right.

Let's say we receive an offering that totals $1000 - $600 is general tithes and offerings, $200 is for vacation Bible school and $200 is for building fund. Physically, $1000 goes into regular checking account and then a check is written for $400 to transfer money to the "designated" checking account.

So - our contribution funds would be set up to: debit the regular checking account $1000, credit Unrestricted Contribution Income $600, credit $200 to the Temp Restricted income account for VBS, and credit $200 to the Temp Restricted income account for building fund.

When the check is written for $400 to transfer - what entries need to be made? This is where I get lost.

You may already realize but you can set all this up under different funds but hold all the money in one account. We use about 10 different funds for general expenses, designated expenses, building, cemetery, etc.

The first two numbers in the account number designates the fund and then the second four numbers designate the account number. You can use the same four numbers for the checking account but different fund numbers. This way you can print out income/expense reports, balance sheets, etc for each fund or combined. Each fund acts like a separate checking account in the program.

Previously, we used separate checking accounts and were constantly having to move money from one to other. This simplifies the banking but also maintains traceability for each fund. You can use the reconcilation function for the banking account and it will include all the funds.

If you have already considered this but it doesn't fit, then just disregard.

When the check is written for $400 to transfer - what entries need to be made? This is where I get lost.

Assuming you are using only one fund, you would simply credit your regular checking account for $400 and debit the designated account for $400. You are just moving assets from one asset account to another. This will show as a check on your regular bank account and a deposit on your designated checking account.