Trial balance: Fund checking account balances out of whack

[ASmith11]

We have about 30 funds.
When I run an Accounting Fund Balance report, it gives me what I believe are the proper fund balances.

However, when I run a Trial Balance, all the fund checking account balances are totally out of whack. The checking account number is 1110 across all the funds. This problem stems back to before I started here, as far back to 2004-2005.

For instance, when income for Fund 02 was recorded, it was like this:
01-1110 debit
02-4130 credit

should have been
02-1110 debit
02-4130 credit

in order to keep the funds in balance. The second example is how I record income; and the same for expenses except I credit the checking and debit the expense account of course.

As a result most of our smaller funds have negative checking account balances while our operating fund has a gigantic balance. I've been writing checks correctly since I started here, and hoping somehow this would all resolve itself (HA!) but alas, that didn't magically happen, so it's now time to correct it.

To make it even more interesting, we also have two investment accounts (1150, money market and 1450, investments). I can figure out 1150, BUT we have one Asset Fund, 20-1450, which gets debited/credited for the investment gains/losses, but the gains/losses get spread out over 15 other funds. So that looks like this:

20-1450 Debit
88-4250 credit

Where to begin? I can't "restart Accouting" as there's too much history. We can't delete it all. Also, some of the smaller funds have negative checking account balances, but the actual cash isn't even held in a checking account- i'ts held in the investment account. I feel like I need to call in a professional! Any help is appreciated. Thanks!

[JohnDMeyers]

If you do use RESTART accounting, you can always keep a second installation of PowerChurch running, with a current backup. We do that, because I used RESTART accounting at the end of 2008 and again at the end of 2009. I have backups running for both prior periods.

30 funds sounds like a bit much, but I don't know your entire setup.

If you can identify errors like this:
01-1110 debit
02-4130 credit

You can always undo them like this:
01-1110 credit
02-4130 debit (and ignore the warning)

I think RESTART accounting is a good option for you at this point. Don't worry about the history (as I stated above). It will save you lots of time in the long run, and give you a chance to re-architect your chart-of-accounts.

[ASmith11]

I just counted, we actually have 25 funds! it's a lot and personally I'd like to streamline it but that's not my decision to make

It's convoluted for sure.

I'm really nervous to use restart accounting and I don't know how to keep a second installation running with a current backup...

If I restart accounting will I still be able to pull history from years prior?

Also- dodesn't the checking account have to close to the fund balance? For instance in Fund 02, all the income, expense and transfer accounts close to 02-3001 but I can't figure out where 02-1110 closes to. Or the other asset accounts for that matter.

[JohnDMeyers]

1) here's how to set up a "backup" version of PowerChurch.
a)make a final backup of your system before RESTART accounting

b)Put the installation disk in, and when it prompts you for the file location c:\powerchurch , change it to c:\powerchurch2011 or something like that. It will create an icon on your desktop. Rename the icon to PC2011 or something like that.

c) restore the backup to that PowerChurch icon. Whenever you need to look at it, simply click on that icon instead of your normal PowerChurch icon. (my computer lets me run both simultaneously without problems)

2) Income and Expense close at the end of the year. Assets and Liabilities do not. Assets and Liabilities reside on your Balance Sheet. Income and expense account "close to" the equity section on your Balance Sheet, once at the end of each year, and then start at zero for the next year.

Here's a link to an explanation I did for someone else: viewtopic.php?f=3&t=6870&p=23310

[NeilZ]

I just counted, we actually have 25 funds! it's a lot and personally I'd like to streamline it but that's not my decision to make

It's convoluted for sure.

I'm really nervous to use restart accounting and I don't know how to keep a second installation running with a current backup...

If I restart accounting will I still be able to pull history from years prior?

Also- dodesn't the checking account have to close to the fund balance? For instance in Fund 02, all the income, expense and transfer accounts close to 02-3001 but I can't figure out where 02-1110 closes to. Or the other asset accounts for that matter.

Its really easy adding another installation of Powerchurch to a single computer, before starting this get the REGISTRATION NUMBER from the existing copy of Powerchurch, you'll need that later on, and do a backup of the existing database.

1. Find the install CD, run the installer.
2. When asked what directory to install to Do Not accept the default, change it to something like x:\PCP_FA_Copy\
3. Let the system do the install, but change the name on the ICON it places on the desktop to PCP Backup so you can differentiate between the two.
4. Start the program .. when asked if this is a new or upgrade, select NEW. It will ask you for the church data. You can really enter anything you like (I usually just type 'adsdf') in the entry blocks, except when you get to the registration number. Enter the number you copied prior to starting all this.
5. The program will then create the database tables, then close.
6. Restart the program and RESTORE the backup from the original database to this installation.
7. You're basically done, and you'll have the data available for historical purposes down the line.

If you restart accounting this is the ONLY way you'll have access to that historical data in the future.

Finally, on my system (which used the accounting wizard to set everything up) the checking account does NOT close to any equity account at all.

[JohnDMeyers]

Neil:

I think we overlapped on our answers. I like your step-by-step procedure better.

[ASmith11]

thanks guys- this is really really helpful.

If I restart accounting will it affect any other users in our office? 5 of us use PC+ for different purposes.

Also, should I use the most current Fund Accounting Balance sheet, ie April 2012?

So if I do this, I'll basically have two installations of PC on my machine- a restored "previous" one, ie what I'm using now, and a new fresh clean installation so I can start over correctly?

I'm still scared

[ASmith11]

Last question, and then I'm giving up on this until Monday.

When Fund 02 was set up in 2004, the Fund Balance (02-3001) had a credit balance of 9425.00.
Shouldn't the checking account, 02-1110, have had a corresponding debit balance?

The system correctly tracked the income and expenses, but at the bottom of the trial balance sheet for that year it shows a balance of -9749.21. Why is there a - sign?

Again, thanks for letting me spew this out. It helps to "talk" it through.
Angie

[NeilZ]

thanks guys- this is really really helpful.

If I restart accounting will it affect any other users in our office? 5 of us use PC+ for different purposes.

No, accounting had absolutely no direct interfaces with other parts of the system. The only areas affected will be Funds Accounting. You may have to verify the vendor records in Accounts Payable, Payroll Pay Items, and Contribution Funds once you're done to make sure that they are linked to the right Funds Accounting accounts, but no actual data in those areas should be touched.

These linked accounts are ONLY used to create the transactions that are passed to Funds Accounting when you POST from those areas.

Also, should I use the most current Fund Accounting Balance sheet, ie April 2012?

So if I do this, I'll basically have two installations of PC on my machine- a restored "previous" one, ie what I'm using now, and a new fresh clean installation so I can start over correctly?

I'm still scared

I'll let John answer this one, that said, I would start from the beginning of the year ... or whenever you start your fiscal year. If you do an October through Sept I would wait until Oct to do this ..

[JohnDMeyers]

Answering the question about the fund balance of $9,425.

Your Assets equals Equity plus Liabilities. A=E+L

If your only asset was the checking account, and you had no liabilities, then your Equity should equal your checking account balance (as all of your income and expenses be in and out of your checking account).

Usually, you have many assets and some liabilities, and the equation above shows the relationship.

The minus sign says that you are off by 9,749.21 in either the CREDIT or DEBIT direction. It simply is telling you which column is greater (and I don't know off hand which it is)