We want to set aside a portion of rental income each month into a reserve account for building repair. What is the proper way to do this?
I state quite often on my site that in fund accounting you do not have to open a separate bank account for each fund; however, a building fund or emergency repair fund may be an exception to that rule.
You definitely need to set up its own fund in your church’s financial records to ensure that all transactions relating to that fund are kept separate from the general fund.
You may also want to consider setting it up in an interest bearing savings account or a certificate of deposit that limits the use of funds for a six- or 12-month period, but usually yields a higher interest rate.
Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!