I need to know how to record certain reimbursements/"income" that the church I work at receives. I am aware that these would not be contributions.
1. Congregation members send payment for the materials used while participating in a bible study.
2. Good will donation for a meal served weekly during the fall and nightly during VBS.
The previous financial secretary trained me to enter this money as a negative expense. Having come from a business background, the church treasurer and I do not believe that this is good accounting practices.
Can you please let me know how you would record this "income"?
Would you create a new income line? Other suggestions?
Thank you for your assistance!
Michelle
4Comments
Accounting for payments
KKen
I do not know what a 'negative expense' is and perhaps that is the way I record such payments.
Any 'income' that is reimbursement to the Church, ie. Bible Study materials, AWANA etc, I enter as income to that Budget item. That way it does not show up as Income and at the end of the year I can show just what that Budget item cost the Church.
Any 'income' that is reimbursement to the Church, ie. Bible Study materials, AWANA etc, I enter as income to that Budget item. That way it does not show up as Income and at the end of the year I can show just what that Budget item cost the Church.
Thank you
AAnonymous
That is what I mean by "negative expense".
Thank you for your input.
Michelle
Thank you for your input.
Michelle
"negative expense"
KKen
Have you come up with a better way to record payments for materials than using a "negative expense" ? I am not an accountant so to me that seems to be a practical way of recording those type of payments and record them as income to your General Fund.
"negative expense"
MMichelle
No, we checked with our conference office and they stated that this is the best way to record these reimbursements.
Thank you!
Michelle
Thank you!
Michelle