Record the transfer of money from checking to savings

by Becky
(MI)

We needed to transfer money from our Parish Savings acct to our Parish Checking acct in order to cover some misc. bills/payroll. Is this entry just a matter of debiting the checking & crediting the savings? Or do I have to somehow show it on our Income Statement as income?

Thanks!

Comments for Record the transfer of money from checking to savings

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Jul 23, 2012
Transfer of money
by: Anonymous in NC

Yes, that is all you need to do since those funds would have already been posted as donated contributions earlier.

Aug 28, 2012
Transfers not income
by: Anonymous

Transfers must be on a different line from income or you will overstate your income at the end of the year. Then when you do your budget for next year you will have a false income estimate.

We use a SS with Income at the top (section 1) by category with a sum. It is this total we use for budgetary estimates.

The second section is Transfers which we add to income for operating cash.

Third section is Operating Expenses.

Fourth section is outreach operating expenses (usually a % of section three Operating Expenses).

Section five is section three minus section four and this is the number that our assessment to the diocese is calculated on.

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