Do any other churches out there utilize a "IN/OUT" Fund for monies that pass through the accounting system?

by Sharon
(Florida)

In a previous church as the Business Administrator our system had a fund set up for pass-through monies. For example, Altar Flowers, people paid for them and then the church paid the florist. It was named IN/OUT Fund.

At year end the remaining balance was rolled over to the new year. Have other churches used this system? What was your experience?

Comments for Do any other churches out there utilize a "IN/OUT" Fund for monies that pass through the accounting system?

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"IN/OUT" Fund for monies that pass through the accounting system?
by: Anonymous - MN

I have a few categories that cause an expense but do receive income to cover. I have set up the Expense category and then set up two sub-categories, a 'Category Expense' and a 'Category Revenue'. The total for the 'Category' indicates the cost or the overage.

If the expense and revenue are received in different months, it does skew the monthly statement of accounts.
Accounting for Pass-Through Monies
by: Vickey

There are many methods for tracking "pass-through" monies like you are describing.

You didn’t say what type of account you were using for your IN/OUT Fund?

I would use an income account IF more money comes in for alter flowers than what is spent.

If the opposite is true (more spent on flowers than donations), I would set it up as an expense; otherwise you end up with negative numbers on your Statement of Activity.

In QBO, I use classes to track "restricted" funds. To "roll over" those balances to the new year, I create a journal entry that credits an income account I created for that purpose and assign the class/fund I want the new year’s rolled over balance to appear in and debit that same income account and assign the Unrestricted/General fund.

I title the income account "Beginning Fund Balance".

That way it doesn’t mess with my totals when I run a regular Statement of Activity but will show when I run a Statement of Activity by Class.

You can also use "Equity" accounts to track and roll over fund balances...but I don't use those types of accounts for "Pass-Through" funds.

I have also used liability accounts to track pass-through monies….BUT only if donations and expenses will zero each other out.

I am curious to know how others handle that type of situation too =)

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