I actually have 2 questions:
1) Usually, we only have GIC investments, and I record the interest as income at the end of the term, whether it's 1,2- or 3-year term. For the first time ever, we have a mutual fund investment, and it had a loss at the end of the year. How do I enter that? And how often are we supposed to enter changes? Is at the end of the year often enough or should we do it quarterly as that's how often the bank sends us reports?
2) The church had to replace 4 furnaces in November 2022 for $24,000. We made one payment in December 2022 for $10,000 and we are making payments for the remainder throughout 2023. Since the furnaces have a life expectancy of about 20 years someone mentioned depreciation. How do we spread the expense out for that time period? How would I enter the payment transactions?
Investment loss
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Re: Investment loss
On mutual funds, I usually update the system quarterly when the statement arrives. This keeps the system up-to-date so that your governing board isn't surprised by a huge loss at the end of the year, or a huge increaseGSA Candace wrote: ↑Wed Feb 01, 2023 12:27 pmI actually have 2 questions:
1) Usually, we only have GIC investments, and I record the interest as income at the end of the term, whether it's 1,2- or 3-year term. For the first time ever, we have a mutual fund investment, and it had a loss at the end of the year. How do I enter that? And how often are we supposed to enter changes? Is at the end of the year often enough or should we do it quarterly as that's how often the bank sends us reports?
FWIW ... some churches keep track of depreciation, and some don't. The reason most don't is because churches are a cash-basis entity, and really do not have to pay business taxes as a normal 'for profit' business. In your case, since the furnaces are 'fixed building assets' that are unlikely to be sold (other than as scrap in 20 years) it makes even less sense.2) The church had to replace 4 furnaces in November 2022 for $24,000. We made one payment in December 2022 for $10,000 and we are making payments for the remainder throughout 2023. Since the furnaces have a life expectancy of about 20 years someone mentioned depreciation. How do we spread the expense out for that time period? How would I enter the payment transactions?
Matt, an authorized Powerchurch teaching consultant, says the same here: viewtopic.php?f=3&t=11480&p=36427&hilit ... ion#p36427
If you're not currently tracking your land and buildings it makes no sense to start tracking depreciation on the furnaces.
All that said, here is some advice about adding depreciation accounts and use. It refers to a vehicle, but the setup is the same.
viewtopic.php?f=3&t=6810&hilit=depreciation
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.