Escrow HELP- Am i recording interest paid to Escrow and fees paid from Escrow correct

by Donna
(Staten Island, NY)

I am not accountant, took on the job as a treasurer in my church. Using Aplos to keep me sane.

Escrow. It is setup as an Asset.

When we pay the mortgage, we divide the payment into the principal (liability), interest (expense) and the escrow (asset it is a register Asset account).

a) When the bank pays the property taxes and the property insurance from the Escrow Account. I will use the register and treat it like a check. Record from the Escrow Assets account, property taxes (expense) and property insurance (expense).
b) The account also receives interest and it has a fee. I am guessing that I will do the same as with the property taxes.

In the Asset account(register), record escrow interest paid (income account). The same logic for the fee. From the Asset Account, record Escrow_Disbursement_Fee (expense)

Is this correct?

Also Should I call the property Tax and Property Insurance that is paid by escrow prepaid property tax?

Thanks

3Comments

sorry for the confusion

AAnonymous

Hi, thanks you both for your comments. Sorry, for the confusion. the property tax is not on the church it is on house that we rented out, thus property tax.

Property Taxes

AAnonymous

This comment is to address the property taxes you are paying. I am not an accountant, and my church owns the property outright so we don't pay a mortgage so I wouldn't know how to classify the payments you are talking about.

As far as the property taxes, if the property is classified as a church or place of worship and you have a tax exempt certificate to prove it, you shouldn't be paying ANY property taxes whatsoever.

You should contact your county revenue office or courthouse where the property records are filed and they may be able to help you out with that. Also, I'm thinking that the code enforcement office may be able to direct you as well. Don't be giving out money you don't need to be letting go of. Good luck! God bless!

Recording interest paid to Escrow and fees paid

AAnonymous - MN

First, I am curious why you are paying Property Tax on a Church property. I find it odd that the Church is having to pay this tax.

I doubt you will find a lot of help from folks who handle the finances of most Churches. I would suggest that you are maintaining a a far detailed accounting than most find necessary to maintain.

Keeping track of principle paid and interest paid and amount toward insurance payment is very worth while and I also keep track of funds placed in funds for insurance, maintenance, vehicles and others. Not sure the value of the the asset is necessary as that value will change depending on current market conditions in your area and the amount or your mortgage.
Back to Home
Free Spreadsheets