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DeaB
Level 1

Church designated funds

I just started doing the bookkeeping for a church and they have their designated funds set up as sub accounts of their checking account. That way, in the chart of accounts, it is easy to see the running balance of each designated fund and what part of the checking account is already designated to something specific.

 

Can you think of a reason that this wouldnt work??

 

The other church I do bookkeeping for has their designated funds set up as equity accounts. But in order to keep the profit and loss correct the designated income has to be entered in as Miscellaneous income and then using a general journal entry to expense them into the equity account. Its kind of messy. And takes time at the end of each month to make sure none of the journal entries are missing.

 

I dont like using classes because if you get in a hurry and forget to add the class to a transaction, it would be difficult to know that it was missed, at all. How would you reconcile the classes to be sure they were accurate.

1 Comment
Mark_R
QuickBooks Team

Church designated funds

Hi there, @DeaB.

 

Let me provide some insights about tracking designated funds and help you from there.

 

Tracking designated funds for checking accounts as sub-accounts is a best practice to record transactions for each account. However, QuickBooks depends on how your bank downloads the transactions.

 

Also, the Class Tracking feature would be a great help to keep track of your expenditures and revenues. For more information, feel free to check out this article: Using Classes and Locations in QuickBooks Online.

 

On the other hand, reconciling classes isn't available in QuickBooks. You can consider running the Transaction List by Customer or Vendor report. And manually compare each transaction with missing classes.

 

To run the report, click Reports from the left menu and search for Transaction List by Customer.

 

As always, you can visit our QuickBooks Community help website if you need tips and related articles in the future.

 

Don't hesitate to click the Reply button below if you need further assistance with QuickBooks. I always have your back and am always happy to help. Have a great day.

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