More Accounting Processes

In this chapter, we discuss the other duties you will take care of throughout the year. These include writing checks, transferring funds, bank reconciliations, general journal entry, and NSF check reversal. We will also guide you through the process of closing out the year as well as how to handle a local church audit.

Ongoing Duties

Write Checks

As discussed in the first chapter, disbursement of funds is one of the key components of the treasurer's work. This task is performed in "Write Checks.", regardless of whether you print a physical check with Jewel, hand-write a paper check, use a debit/credit card, or send an electronic payment. Note that you can write checks in a new month without having closed the previous month (turn on this option in Maintenance -> Properties -> General tab). Okay, now let's talk about how it's actually done!

From your Jewel Home Screen, select "Write Check."

1. Notice that the check shows the name/address of your church and bank as you have recorded them in Properties. If Church information is incorrect, go to Maintenance → Properties → Church Info tab and make necessary corrections. If Bank information is incorrect, go to Maintenance → Edit Accounts and edit the necessary account BEFORE writing your checks.
2. You will need to enter the beginning check number on the FIRST check you write. After that, the check number is automatic and you should not generally need to change it. However, the number can be changed when necessary.
3. The date is automatically set to today's date, according to the date on your computer's system. You can also set Jewel so that it brings up the date of the last check written. To set this default, go to Maintenance → Properties → Check Options. You can change the date, but just remember that depositing a check dated in the future (post-dated check) is ILLEGAL.
4. Type in the Payee, or choose from the list using the down arrow. Remember you can use the (+) sign to add or edit a name and then return to writing your check.
5. The dollar amount (as well as memo and account breakdown) of the most recent check written to this vendor will be automatically entered. If necessary, change this information to what you need THIS current check written for. After typing in the correct amount, press Enter.
6. Enter a Memo in the memo text box, indicating what the check is being written for.
7. Choose the Account(s) the check is to be taken from.

At this point, you can either print this check (ensure “Print this Check” is marked, then click the button “Print Checks”) or write more checks (click “New Check”, or press F8). You can print multiple checks by ensuring “Print this Check” is marked for each check, then clicking “Print Checks” when you are finished writing all your checks.

Important: If you still want to hand-write your checks, you can. But you MUST write the check in Jewel as well so that the check information can be stored and kept in Jewel's records. This is necessary to keep your books accurate and reliable!

Make Electronic Payment

Rather than writing a check, you may need to simply record that a payment has been made out of a church account, without using a check number. These payments are recorded in Write Checks, following the same steps as above, except that instead of making sure you have the right check number, you will mark the Electronic Payment box. Use this procedure for electronic bill pay, automatic debits, and credit/debit card transactions.

FAQs

What check paper format does Jewel use?

Same as Quickbooks format, which is one sheet with check at top and 2 stubs below. This blank check paper can be purchased at any office supply or major online retailer. Jewel will print all of the needed information on the check paper. You can also buy preprinted checks in this format, but this costs significantly more than having Jewel do the printing.

Can I delete a check in Jewel?

No. However, you CAN void checks. To void a check, click on Accounting, Void a Check. Select the check you wish to void, verify the memo field, then click OK.

Transfer Funds

On occasion, you may need to transfer funds from one account to another. For instance, say your Pathfinder group needs $50 more than they have in their account right now to make an important purchase. If the church board has approved the transfer, you can take $50 out of one account and put it into the Pathfinder Fund. To transfer funds in Jewel, follow these instructions:

1. Click on Transfer Funds on the Home Screen.
2. Look in the upper left corner. The date defaults to today's date, but can be edited if needed. Now type in the memo - noting any information you may need to identify this transfer, such as what the money is actually going to be used for, or the date of board approval.
3. You have the option to transfer in or out of multiple accounts. This is in case you need to take money from multiple funds and put into one OR take money from a single account and divide it among multiple funds. Select whichever method you would like to use by clicking the small white circle beside your preferred option. Notice how the screen changes when you select either one. It will expand the TO or FROM accounts so that you can enter multiple accounts. If you are making a transfer from a single account into a single account, it does not matter which of these is selected.
4. Now, select the account(s) the money is being transferred out of - either by typing it in or selecting from a list with the down arrow. Then for each account type in how much money is to be transferred. To insert an account, either press ENTER after the previous account keyed in, OR click the insert button.
5. Next, select the account(s) the money is being transferred in to and how much money is to be transferred in. The amount being transferred in must be the same as the amount you transferred out. You can't take $50 out and transfer in $60!
6. When finished, click OK and you're done! Jewel will make the appropriate adjustments in the records.

Note that you can look at a record of previous transfers by clicking the "Transfer Report" button.

Bank Reconciliation

Best practice is to reconcile monthly before closing the month. However, it is not imperative to do so. If you cannot reconcile during your month-end closing for some reason, you may do so at any point during the monthly process of any future month by clicking Reconcile on the Jewel Home Screen. Keep in mind, though, that reconciliation is essential to ensuring that your Jewel records accurately reflect what has happened at the bank. Also, there is often a strict time frame for reporting fraudulent transactions. So reconciliations should always be completed as soon as possible after receiving the bank statement. Please click here for the steps to follow.

General Journal Entry

If you need to make an accounting entry for a transaction which does not fit anywhere else in Jewel's accounting process, you can make that entry here. The General Journal is for entering items such as bank fees or interest earned.

NOTE: Do NOT use General Journal Entry for: offering deposits, transfers, checks or other payments, NSF reversals, budget allocation, or bank reconciliation.

To make an entry:

1. Select Accounting, then Make General Journal Entry.
2. Type in the appropriate date (Jewel defaults to today's date).
3. Type a Memo describing the transaction. It is very important to type a memo for every General Journal Entry so you will be able to keep track of what the transaction was for.
4. Choose whether you wish your transaction to appear on Deposit reports or on Check reports, by choosing Deposits and Interests Earned OR Checks Written and Bank Fees.
5. Select the correct bank account, and enter the amount being added (Income) or subtracted (Expense).
6. Select the appropriate church fund(s) and enter the Income or Expense for each account.
7. To complete the entry, click OK or “New Entry.”

NOTE: The total taken from or added to your local funds must be EQUAL to the amount you are subtracting/adding to your bank account.

Void a Check

If you need to void a check that you have previously written, go to Accounting -> Void a Check.

1. Use the sort options to find and select the check you wish to void.
2. Verify that the date and memo accurately record what you are doing.
3. Click OK.

The check you selected has been recorded as void. Jewel will either edit the check to make the amounts $0 (if the check is in the current month) or record a new transaction in the current month to cancel out the check that you're voiding. In the Bank Reconciliation, you will then mark off the $0 check, or both the original check and the new transaction, to remove them from the list of checks waiting to be cleared. Since the total amount you are checking off is $0, it will not affect your balance.

NSF Check Reversal

The NSF Check Reversal's purpose is to keep record of non-sufficient fund checks (bounced checks) or other reversed offerings and their corresponding bank fees, if applicable. An NSF Check reversal can be performed at any time, even in months after the offering was received.

We say "check", because that's the type of offering that historically has most often bounced, but electronic offerings can also be returned. All electronic offerings should be entered as "Checks" rather than as "Cash" so that if they are returned, you can use Jewel's NSF Check Reversal feature to easily reverse the offering.

To record that an offering was reversed, go to Offerings -> NSF Check Reversal.

1. Use the Time Period and Sort Order options to find the offering you need to reverse.
2. Select the offering you are looking for. Make SURE you select the correct one!
3. If your bank does not charge a fee, simply leave the Account and Expense boxes blank. If your bank has charged a fee for the NSF check, enter that information here. Select which account to take the charge from and enter the amount charged.
4. Verify that the Date and Memo accurately record what you are doing.
5. Click OK to complete the NSF check reversal.

Import from AdventistGiving

Jewel can import offering information from AdventistGiving. You may, of course, manually type in AdventistGiving offerings just like you do your Sabbath offerings. If you have very few donors, this is not an undue burden. Just be sure that you copy from AdventistGiving's Official Deposit Report, issued on the 15th and last day of each month, and not the notifications of individual donations that you receive throughout the month. The Cut-off Date is the offering date, since donations should be recorded in the same month they were donated, regardless of when they were deposited.

However, if you have more than a very few donations each month, you will find it much easier to import your AdventistGiving offerings.

Direct Import

The easiest method to import AdventistGiving data requires importing each Deposit Report as it is generated by AdventistGiving. To use this method:

1. Click Start New Offering, then Import Offering. You do not need to enter a date or offering total, as Jewel will receive this information from AdventistGiving.
2. Enter the Email and Password that you use to log in to the AdventistGiving website, then click Import from AdventistGiving.
3. Any accounts that appear in red must be "mapped". Select the account you wish to map and click Map Account. Select the Jewel account that corresponds to the AdventistGiving account you are mapping, or add a new Jewel account, then click OK.
4. Any donors that appear in red must be mapped. Select the donor you wish to map and click Map Donor. Select the existing Jewel donor that corresponds to the AdventistGiving donor you are mapping, or add a new Jewel donor, then click OK.
5. Once you don't see any more red, all accounts and donors have been mapped. Click OK to move on to the Make Deposit screen.
6. Check that all deposit information looks correct, and click OK to record the deposit.

Import from a File

If you need to import a Deposit Report that is not the most recent report, you will need to import from a file.

1. Go to the AdventistGiving website, and log in to your Treasury account.
2. Download the Official Deposit Report for the cut-off date you need to import. The .csv version works most consistently for Jewel import. Note where the file is saved on your computer.
3. Back in Jewel, click Start New Offering, then Import Offering. You do not need to enter a date or offering total, as Jewel will receive this information from AdventistGiving.
4. Click Import from a File. You do not need to enter your email or password.
5. Find and select the Official Deposit Report you just downloaded, then click Open.
6. Any accounts that appear in red must be "mapped". Select the account you wish to map and click Map Account. Select the Jewel account that corresponds to the AdventistGiving account you are mapping, or add a new Jewel account, then click OK.
7. Any donors that appear in red must be mapped. Select the donor you wish to map and click Map Donor. Select the existing Jewel donor that corresponds to the AdventistGiving donor you are mapping, or add a new Jewel donor, then click OK.
8. Once you don't see any more red, all accounts and donors have been mapped. Click OK to move on to the Make Deposit screen.
9. Check that all deposit information looks correct, and click OK to record the deposit.

The Local Church Audit

Each local church is typically audited once a year. An audit may sound ominous, but it doesn't have to be! The purpose of a local church audit is simply to ensure that the books are being kept accurately. Everyone makes mistakes – an auditor is there to help find them! Remember that the auditor is your friend. Yes, they are looking for errors, but they are also there to encourage you and help you do your work better. They can help guide you in the right direction and teach you better ways of doing your treasury work. The auditor's job is to be a help to YOU!

When it comes time for your church to be audited, your auditor will contact you and set up a time. You will need certain records and documentation ready for your auditor. You will need all records for the time period since your last audit. Having these records prepared in an easily-accessible and organized fashion will help your audit to go smoothly and quickly. If you need tips on how to stay organized, contact your auditor and they can help you. The audit process may vary by conference, so we recommend that you get in touch with your auditor and find out from them exactly what they expect from you during the audit.

Have the following documentation prepared for your auditor:

1. Bank statements for all accounts (including checking AND savings).
2. Tithe envelopes.
3. Paid invoices.
4. Board minutes.
5. Backup of Jewel database.

Although not required, here are a few things you can do to make the audit even easier for your auditor:

1. Make sure all bank accounts are reconciled.
2. Organize your paid invoices by date (or at least by month).
3. Using rubber bands, have tithe envelopes grouped by week, and then banded together by month.

FAQs

How long are Church Records to be kept on file?

In general, follow these guidelines. However, you will need to check with your Conference auditor to make sure they do not have different regulations.

Tithe Envelopes: Can be destroyed after the audit and after receipts have been given to Donors for that time period.

Bank Statements and Paid Invoices: Keep for 6 years.

Monthly Report printouts: Permanent Church Records - never to be destroyed.

Year End

There are two year ends you will encounter - the Fiscal and the Calendar. Most likely these will coincide at the end of December of each year. However, some churches may have a fiscal year ending some other time during the year - usually June 30. For the fiscal year end, you will be required to make a budget allocation (if your church has made a budget), print year- and month-end reports, and back up data. For the calendar year end, you will follow the same steps for month end with the addition of printing and distributing contribution receipts. Whether you are performing a fiscal year end, calendar year end, or both - Jewel has made the process quite simple. Below is a discussion of how Jewel guides you through the process.

Once you have completed the last offering of the fiscal/calendar year end, Jewel will begin guiding you through the year end process with the Next Step button.

Budget Allocation

Budget Allocation is performed at the fiscal year end (or calendar if at the same time). Please refer to the section on Budget Allocation under Jewel Set Up for detailed guidelines on developing the budget, as well as entering the budget in Jewel. At each fiscal year end, Jewel will ask if you would like to set up next year's budget. If so, click Yes when prompted and enter in next year's budget. If it has not yet been prepared, click No. You can still enter the budget later by going to Maintenance → Edit Budget Allocations.

Contribution Receipts

Contribution Receipts must be printed and distributed at the end of each calendar year, regardless of whether the fiscal year has ended as well. Jewel automatically prints these receipts during the year-end process in December. These are to be distributed promptly for the donors' records and tax returns. You can either mail them or have the donors pick up the receipts from you. Note: If you have a donor who is also a vendor, ONLY their contributions will show up on this receipt. The receipt will not have information about checks written TO the donor/vendor.

Print Reports

As with month endings, there are several reports to be printed at this time. If you are doing only a calendar year end, Jewel will print the regular month-end reports. If you are performing fiscal year end, Jewel will print both month end as well as year end reports. Ensure your printer is powered on and has a sufficient paper supply. Keep these reports for your records and send copies to the conference as needed. Verify with your conference auditor which reports they require to be sent in. To select/change what reports to print, go to Maintenance → Properties → Reports Tab and select reports to print for the desired time period and select how many copies to print.

Back Up Data

Follow the same process here as for month-end. Once again, this is a safeguard against losing your data. Having your information in a separate place ensures that you will not lose it! You may use a CD-ROM, memory stick, or any other suitable storage device. Follow the prompts in Jewel to back up your data.

FAQs

My receipts are printing backwards in batches. How do I fix it so it prints in the right order?

Your printer is printing the last page first. In Jewel, go to Reports tab in Properties and change number of pages per print job to 1 page only.

A donor made contributions this year but no receipt was printed. Why? And how can I print one?

Go to Maintenance -> Edit Names, find the name and make sure that "Get Receipt" is checked. If it is unchecked, that is why no receipt was printed. Check "Get Receipt", then go to Reports and Graphs → Receipts → Single Donor and Print the receipt.

Form 1099 Payments

This report assists in the preparation of IRS Form 1099, which in the United States must be provided to each vendor who has been paid more than a specified cumulative amount during the year. First select the time period you want. Click on the Choose Form 1099 Payments button Highlite a vendor. This screen will allow you to choose the payments that apply to Form 1099 for the vendor. When finished adding all the vendors that need a Form 1099, just click on Print to create a hard copy of the report. From this list you will have information necessary for the Form 1099.