Hi, I am Ufuoma Ogaga from ...
Goshen Bookkeeping & Consulting.
To wrap up our four-part church series on restricted ...
funds, I will show you how to close ...
out your year-end fund balances to your net asset ...
accounts on the statement of financial position.
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If you have been using QuickBooks Online for a ...
while, you will notice every year on ...
January 1st or the beginning of your fiscal year,
your net surplus or deficit from all of your fund ...
balances closes to the QuickBooks Retained ...
Earning equity account.
To get accurate fund balances,
you need to move all of the fund balances from the ...
Retained Earnings equity account to the with or without ...
donor restriction net asset accounts.
Let's go into QuickBooks Online to complete this step.
Going into the report center, I will select the statement of ...
activity by class report and I will change the date range to ...
the prior year and click run report to get our fund ...
balances. I will make a note of each ...
fund balance amount and the total net surplus amount ...
because we are going to use those numbers to record our ...
journal entry later.
Here is our Statement of Financial Position report for ...
the same period to show you the same net surplus ...
amount. Now,
I will change the report date range to January 1st so that ...
you can see my net surplus amount has rolled into the ...
Retained Earnings equity account.
Here is a flow chart for you to understand what's happening ...
with my net surplus account and retained earnings so that ...
you know how to record your journal entry.
The retained earnings and the net asset accounts on ...
your statement of financial position are the accumulated ...
net worth of your ministry throughout the years.
When you have a net surplus,
that increases the retained earnings equity account.
To clear the balance from the retained earnings equity ...
account, you need to debit the account ...
and credit your with or without donor restriction net asset account.
If you have a net deficit from the statement of activities for ...
the prior year, you need to do the reverse ...
journal entry of what I just stated.
Hopefully, this chart helps you ...
understand where to plug your numbers when ...
recording your journal entry.
Now, let's record our beginning ...
fund balances. Enter January 1st or the ...
beginning date of your fiscal year as the journal entry date ...
and continue with your journal entry number sequence.
For line 1, select the JOURNAL clearing ...
account we created before, enter a description,
leave the name field blank, select the without donor ...
restriction location tracking, and the general fund class.
For line 2, select the retained earnings ...
account, enter the net surplus amount ...
in the debit box, repeat the same description ...
from above, and select the customer and ...
project in the name field. And,
select with donor restriction if you are using location ...
tracking, and the temporary restricted class.
For line 3, select the with donor ...
restriction temporary net asset account,
enter the net surplus amount in the credit box,
repeat the same description from above and select the ...
customer and project in the name field.
Under the location tracking field,
select with donor restriction and the temporary restricted class.
If you have other funds to record,
repeat the entire process making sure you add the ...
amounts in the correct boxes using our journal entry flow ...
chart explanation until your retained earnings account is zero.
Copy the same description from above to the memo field ...
at the bottom and click save and close.
Let's refresh the statement of financial position for January ...
1st. You will notice the retained ...
earnings account is zero and the with and without donor ...
restrictions net asset accounts now have all of the ...
fund balances we recorded.
This concludes part four of this video series on how to ...
record and track restricted funds for your ministry in ...
QuickBooks Online. Let me know if this video ...
helped you in the comment section and what other topics ...
you would like to see me cover next.
Don't forget to check out the description box for a link to ...
the full playlist for my QuickBooks Online for ...
Churches video series.
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