Create journal entries to convert to accrual from cash

[gkenney]

PowerChurch is a fund based accounting system. How easy is it to create
journal entries to convert to an accrual system for creating financial reports for applying for bank loans? After creating the reports, I would want to convert back to a fund system. Would repeat this cycle once a year at year ending. Is there an easy procedure? Thanks, gkenney

[NeilZ]

PowerChurch is a fund based accounting system. How easy is it to create
journal entries to convert to an accrual system for creating financial reports for applying for bank loans? After creating the reports, I would want to convert back to a fund system. Would repeat this cycle once a year at year ending. Is there an easy procedure? Thanks, gkenney

FWIW ... a church is a cash based system. Powerchurch has been designed that way from the start, and I do not believe it is setup to be used as an accrual type of system, nor can it be converted to that use, unlike Quickbooks which can be setup as either accrual or cash based.

Any bank should be able to understand that, and work from the reports as given by Powerchurch to determine loan eligibility for construction, etc.

I know at my last church, when we applied for construction loans, we used the current and pledged contribution data directly from Powerchurch.

[gkenney]

Neil,

Thanks, for the reply. Are you aware of GAAP financial statements? I was told by a CPA that we would need a GAAP (accrural statement accounting statements) because they were preferred by banks. Gene .

[blanneau]

Gene-

I was a banker for 26 years and what bankers want to know most is what does the cash flow look like... will you be able to repay the loan. Unless your church is very large and the finances exceedingly complex, you shouldn't have a problem. In that case, a bank may request CPA audited or compiled statements. If that were the case, then your accountants could take your PowerChurch generated statements and present them in the format required.

My advice is to keep your system straight forward. Use the reports that you have. Cash basis should be fine in any event.

-Bazile

[gkenney]

Bazile,
Thanks, for the information. We will try that. Gene