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!
2Comments
Transfers not income
AAnonymous
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.
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.
Transfer of money
AAnonymous in NC
Yes, that is all you need to do since those funds would have already been posted as donated contributions earlier.