[GNC] Book keeping/accounting of club project funds

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[GNC] Book keeping/accounting of club project funds

Roderick Anderson
Cryptic enough? :-)

How should I make entries for club project funds.

I am the treasurer for a small 501(c)(3).  Our income is mainly
memberships (dues), cash donations, and an annual swap meet like event.

First off I have almost no experience in accounting and mostly
on-the-job learning.  I inherited a Quick Books system that I imported
into GNUCash.  I've made some modifications to that account structure.

I am using three Asset accounts.  Checking, Savings, and Petty cash.

I've been asked to track the funding(?) for the clubs main project, HAM
radio repeaters.  We paid for them out of checking.  Some of it before I
became treasurer.
   We are now needing to enhance those systems so we've asked for
donations specifically for this purpose - a Repeater fund.

So when the funds come in how do I book them?  That the right term?
Previously I just deposited the funds to checking.  And we used them as
needed though there wasn't enough in the fund so the rest came out of
the checking asset.

I'd appreciate any suggestions on how to handle this?


TIA,
Rod
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Re: [GNC] Book keeping/accounting of club project funds

Rich Shepard
On Thu, 2 May 2019, Roderick Anderson wrote:

> Cryptic enough? :-)

Hey Rod!

> How should I make entries for club project funds. I am the treasurer for a
> small 501(c)(3). Our income is mainly memberships (dues), cash donations,
> and an annual swap meet like event.

First, I'd check with a CPA for financial reporting requirements where you
are (still Idaho?)

> First off I have almost no experience in accounting and mostly on-the-job
> learning. I inherited a Quick Books system that I imported into GNUCash.
> I've made some modifications to that account structure.

Accounting experience not required, only the ability to keep books properly.

> I am using three Asset accounts. Checking, Savings, and Petty cash.

> I've been asked to track the funding(?) for the clubs main project, HAM
> radio repeaters. We paid for them out of checking. Some of it before I
> became treasurer. We are now needing to enhance those systems so we've
> asked for donations specifically for this purpose - a Repeater fund.

Create income and expense accounts for repeater purchases. Perhaps a
separate expense account for delivery charges.

Also have income accounts for membership dues, refunds (to you from returned
purchases), bank interest, and other (infrequent and incidental revenues).
If you have bank charges, you need an expense account for bank interest
charges, you might want an expense account for postage, office supplies,
computer equipment, etc.

Go for it!

Best regards,

Rich

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Re: [GNC] Book keeping/accounting of club project funds

Rich Shepard
On Thu, 2 May 2019, Rich Shepard wrote:

>> I've been asked to track the funding(?) for the clubs main project, HAM
>> radio repeaters. We paid for them out of checking. Some of it before I
>> became treasurer. We are now needing to enhance those systems so we've
>> asked for donations specifically for this purpose - a Repeater fund.

Rod,

Forgot to suggest you set up Business -> Vendor account for your hardware
provider(s) and anyone else who the organization needs to pay. Set up an
asset account for accounts payable, enter (and post) invoices there, then
pay them by either printing checks or writing checks by hand.

Rich

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Re: [GNC] Book keeping/accounting of club project funds

Stephen M. Butler
In reply to this post by Roderick Anderson
On 5/2/19 3:18 PM, Roderick Anderson wrote:
> Cryptic enough? :-)
>

> How should I make entries for club project funds.
>
> I am the treasurer for a small 501(c)(3).  Our income is mainly
> memberships (dues), cash donations, and an annual swap meet like event.
>
> First off I have almost no experience in accounting and mostly
> on-the-job learning.  I inherited a Quick Books system that I imported
> into GNUCash.  I've made some modifications to that account structure.
>
> I am using three Asset accounts.  Checking, Savings, and Petty cash.
>
> I've been asked to track the funding(?) for the clubs main project,
> HAM radio repeaters.  We paid for them out of checking.  Some of it
> before I became treasurer.
>   We are now needing to enhance those systems so we've asked for
> donations specifically for this purpose - a Repeater fund.
>
> So when the funds come in how do I book them?  That the right term?
> Previously I just deposited the funds to checking.  And we used them
> as needed though there wasn't enough in the fund so the rest came out
> of the checking asset.
>
> I'd appreciate any suggestions on how to handle this?
>
>
> TIA,
> Rod

In addition to the other suggestions, I'd look to having sub-accounts
under checking and set flags such that checking includes the
sub-accounts in a roll-up accounting.  With sub-accounts you could break
out the funds held in the checking account for the purposes for which
the funds have been reserved.

Have fun and 73.

--KG7JE

--
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[hidden email]
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253-350-0166
-------------------------------------------
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Re: [GNC] Book keeping/accounting of club project funds

Roderick Anderson
In reply to this post by Rich Shepard
Thanks Rich.

Yeah still in Idaho so and because our assets are so small we have only
an Annual Report.  At least that's what the Secretary of State says.  :-)

Federal tax reporting is just a simple.

Somewhere/when the decision must have been made to not carry hardware on
the books.  Feels odd to me but I don't buck it.  More work for a
volunteer position.

I'm still looking for a CPA that will help us pro bono.  Right now the
great people on this list are my resource.  :-)

Again thanks for the thoughts.


Rod
--
On 5/2/19 4:06 PM, Rich Shepard wrote:

> On Thu, 2 May 2019, Roderick Anderson wrote:
>
>> Cryptic enough? :-)
>
> Hey Rod!
>
>> How should I make entries for club project funds. I am the treasurer
>> for a
>> small 501(c)(3). Our income is mainly memberships (dues), cash donations,
>> and an annual swap meet like event.
>
> First, I'd check with a CPA for financial reporting requirements where you
> are (still Idaho?)
>
>> First off I have almost no experience in accounting and mostly on-the-job
>> learning. I inherited a Quick Books system that I imported into GNUCash.
>> I've made some modifications to that account structure.
>
> Accounting experience not required, only the ability to keep books
> properly.
>
>> I am using three Asset accounts. Checking, Savings, and Petty cash.
>
>> I've been asked to track the funding(?) for the clubs main project, HAM
>> radio repeaters. We paid for them out of checking. Some of it before I
>> became treasurer. We are now needing to enhance those systems so we've
>> asked for donations specifically for this purpose - a Repeater fund.
>
> Create income and expense accounts for repeater purchases. Perhaps a
> separate expense account for delivery charges.
>
> Also have income accounts for membership dues, refunds (to you from
> returned
> purchases), bank interest, and other (infrequent and incidental revenues).
> If you have bank charges, you need an expense account for bank interest
> charges, you might want an expense account for postage, office supplies,
> computer equipment, etc.
>
> Go for it!
>
> Best regards,
>
> Rich
>
> _______________________________________________
> gnucash-user mailing list
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> To update your subscription preferences or to unsubscribe:
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
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> https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
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Re: [GNC] Book keeping/accounting of club project funds

Roderick Anderson
In reply to this post by Stephen M. Butler
Thanks Stephen.

This is kind of what I was thinking I needed to do.

Can you offer some pointers to find out more about 'setting flags' and
roll-up account?  I figured there should be options like this but too
ignorant of accounting to even know where to look.


73,
Rod - K7ZBE
--
On 5/2/19 4:53 PM, Stephen M. Butler wrote:

> On 5/2/19 3:18 PM, Roderick Anderson wrote:
>> Cryptic enough? :-)
>>
>
>> How should I make entries for club project funds.
>>
>> I am the treasurer for a small 501(c)(3).  Our income is mainly
>> memberships (dues), cash donations, and an annual swap meet like event.
>>
>> First off I have almost no experience in accounting and mostly
>> on-the-job learning.  I inherited a Quick Books system that I imported
>> into GNUCash.  I've made some modifications to that account structure.
>>
>> I am using three Asset accounts.  Checking, Savings, and Petty cash.
>>
>> I've been asked to track the funding(?) for the clubs main project,
>> HAM radio repeaters.  We paid for them out of checking.  Some of it
>> before I became treasurer.
>>    We are now needing to enhance those systems so we've asked for
>> donations specifically for this purpose - a Repeater fund.
>>
>> So when the funds come in how do I book them?  That the right term?
>> Previously I just deposited the funds to checking.  And we used them
>> as needed though there wasn't enough in the fund so the rest came out
>> of the checking asset.
>>
>> I'd appreciate any suggestions on how to handle this?
>>
>>
>> TIA,
>> Rod
>
> In addition to the other suggestions, I'd look to having sub-accounts
> under checking and set flags such that checking includes the
> sub-accounts in a roll-up accounting.  With sub-accounts you could break
> out the funds held in the checking account for the purposes for which
> the funds have been reserved.
>
> Have fun and 73.
>
> --KG7JE
>
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Re: [GNC] Book keeping/accounting of club project funds

David Cousens
Rod,

In the archives you will also  find a number of discussions of accounting
for restricted funds where funds are for a specified purpose and restricted
to being used only for that purposewhich may be helpful.

http://gnucash.1415818.n4.nabble.com/Earmarking-funds-for-specific-purposes-td4687783.html
https://lists.gnucash.org/pipermail/gnucash-user/2014-November/056840.html
https://lists.gnucash.org/pipermail/gnucash-user/2016-December/068172.html

There may be more hidden under other related topics

David Cousens



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Re: [GNC] Book keeping/accounting of club project funds

Stephen M. Butler
In reply to this post by Roderick Anderson
On 5/2/19 6:50 PM, Roderick Anderson wrote:

> Thanks Stephen.
>
> This is kind of what I was thinking I needed to do.
>
> Can you offer some pointers to find out more about 'setting flags' and
> roll-up account?  I figured there should be options like this but too
> ignorant of accounting to even know where to look.
>
>
> 73,
> Rod - K7ZBE

I went looking and couldn't find it.  I was thinking that one of the
Balance Sheet or Transaction reports had the option to include the
children in the total.  But, couldn't find it this round.

There are a couple of places where GnC keeps system level type settings. 

1.  File:Properties

2.  Edit:Preferences

Then each report has an Options menu item that will have multiple tabs
for setting options for that specific report.  Some reports won't show
anything until you set the desired options.

--
Stephen M Butler, PMP, PSM
[hidden email]
[hidden email]
253-350-0166
-------------------------------------------
GnuPG Fingerprint:  8A25 9726 D439 758D D846 E5D4 282A 5477 0385 81D8


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Re: [GNC] Book keeping/accounting of club project funds

Adrien Monteleone-2
In reply to this post by Rich Shepard
Rod,

I think AP/AR are already there if you have the Business Features available. (this was a subject of dispute not long ago on the list. I seem to recall a time when one had to specifically enable them as an option, but it’s been so long since I started a new book...)

If you do have to create them manually, be sure to assign them the ’special’ account type that matches their name. (‘Accounts Receivable’ as ’type: accounts receivable’, same for payables)

Also remember that while you can have other receivable and payable accounts, *do not* set them to those special types. (you can only have one of each) Make them generic asset/liability accounts. (but they can be children of the special accounts)

Finally, try to avoid manual entries into those special accounts, use only the business features to accomplish changes. (but you can make manual entries in your generic receivable/payables accounts all you want)

The Business Features, along with their special reports, are not cognizant of entries in the generic accounts, and are not cognizant of manual entries.

Regards,
Adrien


> On May 2, 2019, at 6:30 PM, Rich Shepard <[hidden email]> wrote:
>
> On Thu, 2 May 2019, Rich Shepard wrote:
>
>>> I've been asked to track the funding(?) for the clubs main project, HAM
>>> radio repeaters. We paid for them out of checking. Some of it before I
>>> became treasurer. We are now needing to enhance those systems so we've
>>> asked for donations specifically for this purpose - a Repeater fund.
>
> Rod,
>
> Forgot to suggest you set up Business -> Vendor account for your hardware
> provider(s) and anyone else who the organization needs to pay. Set up an
> asset account for accounts payable, enter (and post) invoices there, then
> pay them by either printing checks or writing checks by hand.
>
> Rich

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Re: [GNC] Book keeping/accounting of club project funds

Adrien Monteleone-2
In reply to this post by Stephen M. Butler
Report Options > Display (at least for P&L/Income Statement and the Balance Sheet)

Parent account balances > Account Balance | Subtotal | Do not show
Parent account subtotals > Show subtotals | Do not show | Textbook style (experimental)

The first option will show the Account Balance if the parent is *not* a placeholder and has transactions.
The first option “Subtotal” will show the roll-up of the kids, regardless of if there are transactions in the parent. (from my understanding)

The second option “Show subtotals” will show a line AFTER the list of kids with “<account> Total” and an amount, which I *think* includes the parent and children
I’ve never seen any difference with the Text Book Style.

Generally, all my parents are placeholders, but I have a few that aren’t. So I set this to Account Balance, and *also* set to suppress zero balance figures and accounts. (so only those parents with transactions get a figure, otherwise, it is blank) And then I set the second option to Show Subtotals.

So I get something like this:

====================
Auto
        Auto Insurance $717.73
        Fuel
                E10 $73.55
                Gas $522.01
        Total Fuel ------- $595.56
           Parking $3.15
           Repair and Maintenance
                 Fluids $61.96
                 Labor $48.00
                 Parts $397.63
                       Warranty $40.00
                 Total Parts ------- $437.63
                 Supplies $10.01
           Total Repair and Maintenance ------- $557.60
     Total Auto ------- $1,874.04

====================

However for my Balance Sheet, none of the detail I choose to show has any parents with transactions, so I set the first option to “Do Not Show” and the second to “Show Subtotals” (I still suppress zero balance figures and accounts for cleanliness)

Regards,
Adrien

> On May 2, 2019, at 9:19 PM, Stephen M. Butler <[hidden email]> wrote:
>
> On 5/2/19 6:50 PM, Roderick Anderson wrote:
>> Thanks Stephen.
>>
>> This is kind of what I was thinking I needed to do.
>>
>> Can you offer some pointers to find out more about 'setting flags' and
>> roll-up account?  I figured there should be options like this but too
>> ignorant of accounting to even know where to look.
>>
>>
>> 73,
>> Rod - K7ZBE
>
> I went looking and couldn't find it.  I was thinking that one of the
> Balance Sheet or Transaction reports had the option to include the
> children in the total.  But, couldn't find it this round.
>
> There are a couple of places where GnC keeps system level type settings.
>
> 1.  File:Properties
>
> 2.  Edit:Preferences
>
> Then each report has an Options menu item that will have multiple tabs
> for setting options for that specific report.  Some reports won't show
> anything until you set the desired options.
>
> --
> Stephen M Butler, PMP, PSM

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Re: [GNC] Book keeping/accounting of club project funds

Rich Shepard
In reply to this post by Adrien Monteleone-2
On Thu, 2 May 2019, Adrien Monteleone wrote:

> I think AP/AR are already there if you have the Business Features
> available. (this was a subject of dispute not long ago on the list. I seem
> to recall a time when one had to specifically enable them as an option,
> but it’s been so long since I started a new book...)

Adrien,

They are present in my personal books as well as the business book. By
default.

Rich
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Re: [GNC] Book keeping/accounting of club project funds

Mike or Penny Novack-4
In reply to this post by Rich Shepard

OK, I can help with this << I am the Treasurer of 501(c)3's

>
>> How should I make entries for club project funds. I am the treasurer
>> for a
>> small 501(c)(3). Our income is mainly memberships (dues), cash
>> donations,
>> and an annual swap meet like event.
>> I am using three Asset accounts. Checking, Savings, and Petty cash.
> I've been asked to track the funding(?) for the clubs main project, HAM
>> radio repeaters. We paid for them out of checking. Some of it before I
>> became treasurer. We are now needing to enhance those systems so we've
>> asked for donations specifically for this purpose - a Repeater fund.
  You are asking about "restricted funds"  << donations reserved to a
specific purpose >>

There are a couple ways you can do this, mainly depending on how formal
the restriction.

a) Liability method (the old fashioned formal way) ---- as the donations
earmarked for come in, debit cash (checking) and credit a liability
account "repeater fund"
      At the same time you create that account, create an income account
"donations used for repeaters". Note that those donations aren't really
the club's until used for that specific purpose << theoretically, were
it decided to cancel the repeater project they would have to be returned
or at least "released" by each donor >>

      So, when you buy repeaters that is a normal transaction crediting
checking and debiting EITHER a fixed asset account "repeaters" << to be
depreciated >> or an expense account "repeaters" << the amount is less
than the organization has chosen for fixed assets --- a non-profit has a
lot of freedom here >>   AND you enter another transaction releasing
that amount, debit "repeater fund" and crediting "donations used for
repeaters". You could do that in a single both sides split transaction
but if new to gnucash I don't suggest that.

b) Less formally you could partition the checking account. But this
makes more work reconciling the checkbook. You would move funds back
from this partition to the main checking account as funds used for
repeaters.

c) If, as you say, you are certain that repeaters will be bought and the
amount purchased will be more than the special donations, you could just
create an income account "repeater donations". When you prepare the
reports for the board, annotate to indicate that the amount spent on
repeaters was more than this amount << so used for the restricted purpose >>

Note that the method chosen would/should depend somewhat on time. I
would tend to the more formal solution if we were talking about
restricted funds raised over time for a well in the future project << I
think you can seen that the "c" method would not be good for "donations
received over several years to reroof the club house".

Michael D Novack




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