Bookkeeping Systems

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Bookkeeping Systems
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Double Entry Bookkeeping

• DEB requires two entries
• a debit and
• a credit
• for each transaction.

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Double Entry Bookkeeping

• Debit entries record increases of assets or of
  expenses or reductions of liabilities or of
  income.
• Credit entries record increases of liabilities or
  of income or reduction of assets or of expenses.

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Double Entry Bookkeeping

• In double entry bookkeeping the sum of the debits
  must always equal the sum of the credits.

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When do you make an entry?

• At the time you place the order (incur the
  expense)?
• At the time you make actually write the check
  (pay the bill)?
• Accrual Basis
• Cash Basis

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General Objectives

• To measure and control financial activities.
• To provide financial information to church
  leaders.
• To provide financial reports to the congregation,
  commercial lending institutions, and the
  denomination.

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Guidelines of System Design

• The system should be reasonably priced.
• The system should be easily understood by the
  people working with it.
• The system should be efficient.
• The system should permit the tracing of
  procedural steps (an audit trail).
• The system should be able to process a vast
  majority of transactions in a uniform and
  consistent manner, yet be flexible enough to
  handle the unusual situation.
• The system should produce reliable data.
• The system should aid in preparing effective
  financial reports.

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Types of Accounting Systems

• Write-it-several-times.
• With this manual system all transactions are
  "logged in" on a form or in cash
  receipts/disbursements journal.
• At the end of a specified period (day, week,
  month) information in the journal is posted
  throughout the system to all records that need
  updating because the transaction has occurred.

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Chart of Accounts
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• Receipts
• The counting committee counts the offering then
  prepares a cash count ticket and a deposit slip.
• The offering envelopes along with copies of the
  cash count ticket and deposit slip are submitted
  to the financial secretary or treasurer.
• The financial secretary or treasurer records the
  offerings in a cash receipts journal.
• The financial secretary or treasurer updates each
  contributor's individual giving record.

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• Disbursements
• A request for payment form is filled out and
  submitted along with other pertinent
  documentation (invoice, receipts, etc.).
• Check stub is completed (date, payee, amount).
• Check is prepared (date, payee, amount, etc.).
• The information is recorded in a cash
  disbursements journal that maintains a
  chronological record of all disbursements.
• The expenditure is charged to a specific account
  (i.e. utilities, mortgage, etc.) Note If
  portions of the expenditures are to be split
  among several accounts, the process has to be
  repeated for all accounts.
• If the expenditure is for payroll, the amount
  earned, deductions and amount paid need to be
  recorded on the employee's payroll record.

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• Problems with multi-write system
• Possibility of frequent errors.
• Difficulty of system maintenance.
• Cannot quickly generate reports.

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• One-Write System.

http//www.checksforms.com/products_onewrite.htm
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• Computer Systems.
• Electronic data processing (EDP) systems are
  widely used in bookkeeping and accounting.
• The system posts to ledger accounts, computing
  account balances, preparing payrolls, and
  printing financial statements.
• An EDP system operates with speed and in a few
  moments can do the work of a whole roomful of
  clerks and typists.
• Most "computer errors" are actually human errors.

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Bookkeeping Software

• http//www.QuickBooks.com/

http//oe.quickbooks.com/learn/?scINT-HP1-801-FEB
BAN
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Tax Help!

• http//www.turbotax.com/
• http//www.taxcut.com/
• http//www.irs.gov/

http//www.turbotax.com/