by Kathy
(Massachusetts)
We use QuickBooks Online for the Operating Account in my church of about 100 members.
I am the treasurer, and have a question about tracking pledges.
Our next church fiscal year goes from July 1, 2011 to June 30, 2012.
Our Stewardship Campaign for this next fiscal year starts later this month. Many people pledge and make out a check right then, which is deposited into the bank THIS fiscal year.
For example, their pledge is for $1,000. They write out a check for $500, which is deposited this FY, and start paying down the next $500 after July of 2011.
My question is: how do I track payments of a pledge during two fiscal years?
We do not have any financial oriented members to help me with this, nor do we have funds to seek the advice of a CPA, so I am on my own with this. Any suggestions as to how to track this in QuickBooks would be much appreciated.
Thank you!
Kathy
3Comments
How did this work for you?
BBill OConnell
Response to Tracking Pledges
KKathy
I appreciate your help - this is the first time anyone has understood my questions about how to deal with this!
Kathy
Pledges within QuickBooks
BBill OConnell
Having said that - your problem is an accounting problem and not a QB problem.
If QB online supports the concept of sub-accounts in the GL, then create a master [current asset] account named Pledges. Manage it through the use of sub-accounts. For each pledge debit a new sub-account with the name [Smith] [$100]. Offset it with a credit to the sub-account named Uncollected Pledges.
Done this way your debit sub-accounts become a trial balance of uncollected pledges, and will equal the Uncollected pledges [credit balance] - and not distort your other accounting.
With each check that arrives, debit cash in your deposit and relieve [credit] the [Smith] sub account. At the end of the month make a journal entry equal to all such relief and debit the Uncollected Pledges and credit Building Fund Revenue.
Call me with questions at 877-823-3101. Find me at www.wisdomoverwealth.com.