Does your TX church or religious organization need help installing, setting up, or learning QUICKBOOKS? We are QuickBooks ProAdvisors located in Tyler, TX.
Case Study: Bookkeeping with QuickBooks
Not that long ago, a major Tyler, Texas, church contacted us to help them with their bookkeeping. A member of their congregation had been keeping the books for them for years and she wanted to step aside and retire. Sadly, she had never been trained as a bookkeeper or accountant.
Fortunately, they were using QuickBooks. The prior bookkeeper had left behind a very comprehensive set of written procedures for how to accomplish nearly every task that was required. Initially, we followed these written procedures as they were written. However, after just a few months of acquainting ourselves with the environment, it became obvious that a major revamp of the accounting process was necessary.
Updating the Accounting Process
Mostly, their Chart of Accounts was a total mess, but that was just the start of their problems. They had eight independent bank accounts all at the same bank and to accomplish any type of realistic reporting they had to pull data from QuickBooks, their manual files, and combine it all into Excel spreadsheets.
- We met with the chairman of the finance committee of the church to lay out a plan that had been forming in our minds.
- Having approval of the chairman, we next met with full finance committee to describe our plan as follows:
- Central focus of the plan was a new Chart of Accounts.
- Consolidate all bank accounts into a single account. We managed to get this down to two (the ladies auxiliary insisted on maintaining their own account).
- The church had both budgeted and un-budgeted expense accounts. We segregated these by using normal “expense” accounts for budgeted items and “other expense” for non-budgeted items.
- We followed the same theme with income accounts using normal “income” accounts for budgeted items and “other income” accounts for non-budgeted revenue.
- To implement the plan, we relied heavily on another tool that we highly recommend. It is marketed by Baystate Consulting and includes a trio of tools named, in turn, Transaction Pro Exporter, Transaction Pro Importer, and Transaction Pro Deleter. We used the first two of these three during this process to migrate the data from the old QuickBooks to the new.
Setting up Simple QuickBooks Reports
Monthly financial reporting to the finance committee used to be a convoluted process involving a great deal of manual labor taking data from QuickBooks and numerous other locations. Now, it is a simple QuickBooks report.
Learning How to Keep the Books
Our final step was to write a complete guide of how to “keep the books” for the church’s newly hired bookkeeper, again, not a trained bookkeeper. For the first few months, we occasionally received calls for help and were more than happy to assist; but, now they are functioning on their own without our help.
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