Quicken Accounting MANUAL. For chartered congregations of the Worldwide Church of God in the United States VERSION

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1 Quicken Accounting MANUAL For chartered congregations of the Worldwide Church of God in the United States VERSION Copyright 2001 Worldwide Church of God

2 Change Log 6/27/05 - Updated Quarterly and Annual screen shots in section 14.3 and 14.4 so that they were clearer to understand.

3 TABLE OF CONTENTS 10.0 QUICKEN: SOFTWARE FOR LOCAL ACCOUNTING RECORDS QUICKEN: INSTALLATION AND FIRST-TIME SETUP Installing Quicken Installing Quicken Installing Quicken Setting Up Bank Accounts Budget Category Setup Typical Income Account Categories Typical Expense Account Categories Report Name Initialization Deleting Default Shell Reports Password Protection QUICKEN: ENTERING TRANSACTIONS Check Register Instructions Electronic Fund Transfer (EFT) Transactions Special Event Income And Expense Transactions Adjusting Transaction Entries QUICKEN: ACCOUNT RECONCILIATION Reconciling Accounts Printing a Reconciliation Statement Printing a Check Register QUICKEN: MONTHLY, QUARTERLY & ANNUAL FINANCIAL REPORTS Running and Printing Memorized Reports Monthly Reports Quarterly Reports Annual Reports QUICKEN: BACKUP Backing Up Quicken Files Setting Quicken Back-up Setting Quicken s Back-up Folder Making the Removable (Off-Site) Copy Quicken Back-up Strategy Single Copy Back-up Dual Copy Back-up QUICKEN: BUDGETING Budgeting with Quicken Inputting the Budget GENERAL: USING OTHER SOFTWARE FOR CONGREGATIONAL RECORDS GENERAL: VIEWING AND CREATING PDF FORMATTED DOCUMENTS Viewing PDF Documents Creating PDF Documents Installing and Using whatever the name of the PDF creator we use is... 38

4 Put instructions and screen shots here...error! Bookmark not defined GENERAL: COMPLETE COMPUTER BACK-UP Back-up And Disaster Preparation Consolidating Your Data Quicken Backup Procedure... 42

5 10.0 QUICKEN: SOFTWARE FOR LOCAL ACCOUNTING RECORDS This section includes instructions for installing and using Quicken, the supported accounting program used to record and track church income and expenditures. In addition, it is used for monthly account reconciliation and for producing financial reports. The Quicken accounting program will be supplied to each requesting congregation. Alternately, they may elect to purchase and use another program such as Microsoft Money, Peachtree Accounting, or even a manual (paper) accounting ledger. Whichever is used, it must be understood that Computer Information Services can only provide technical support to users of the approved version of Quicken. As of Jan 2002, the only supported version of Quicken is Quicken 2002 Basic. 1

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7 11.0 QUICKEN: INSTALLATION AND FIRST-TIME SETUP 11.1 Installing Quicken 2002 Install Quicken on the local church s computer using the instructions supplied with Quicken. After installing Quicken a message may state that the computer must be restarted before the changes will take affect. Restart the computer at this time. If Quicken loads when the computer is restarted, exit it by clicking the Exit button in the top right corner or by clicking File, Exit. Before inputting any accounting information copy the files located on the diskette supplied by church headquarters to c:\temp o Click START, then RUN. o Type c:\temp\qinstall and press ENTER Installing Quicken 2003 Install Quicken on the local church s computer using the instructions supplied with Quicken. After installing Quicken a message may state that the computer must be restarted before the changes will take affect. Restart the computer at this time. If Quicken loads when the computer is restarted, exit it by clicking the Exit button in the top right corner or by clicking File, Exit. Before inputting any accounting information, save the folder called Qfiles to My Documents supplied by church headquarters on the diskette. o Start Quicken o When the Quicken Setup appears, select I am already a Quicken User, Next o For What do you want to do? select Restore a Quicken data file I ve back up to a CD or disk, Next o Choose c:\my Documents o Quicken will grind away, then you ll get Restore successful. Choose File, Open to use data o Choose File, Open, and select the Qdata.qdf file you see. o Follow the setup steps in Quicken to enter your name and set up bank accounts Installing Quicken 2004 Install Quicken on the local church s computer using the instructions supplied with Quicken. After installing Quicken a message may state that the computer must be restarted before the changes will take affect. Restart the computer at this time. If Quicken loads when the computer is restarted, exit it by clicking the Exit button in the top right corner or by clicking File, Exit. Before inputting any accounting information, save the folder called Qfiles to My Documents supplied by church headquarters on the diskette. o Start Quicken o When the Quicken Setup appears, select I am already a Quicken User, Next o Place a dot in Open a file located on this computer, Next o Choose c:\my Documents o Quicken will grind away, then you ll get Restore successful. Choose File, Open to use data o Choose File, Open, and select the Qdata.qdf file you see. 3

8 Follow the setup steps in Quicken to enter your name and set up bank accounts 11.4 Setting Up Bank Accounts Before Quicken can be used, information regarding the local church s bank accounts must be entered. Gather the latest bank statement for each account to be input and determine what name each account will be given. It is recommended that the primary checking account be named Church Checking. Load Quicken by clicking on the Quicken 2002 icon on the computer desktop. It can also be loaded by clicking Start, Programs, Quicken, and then Quicken Quicken Setup Screen 1. At the setup screen click create new account. At the next menu choose the type of bank account and click Next in the bottom right corner. 4

9 Checking Account Setup Screen 1. Input the account name and name of bank. 2. Then click Next. In the next screen enter the date of the last statement, account balance as of that date and click Done. Complete these instructions for each church bank account Budget Category Setup The software provided by the denomination installed the basic categories (chart of accounts) that will be used by most local churches. When entering deposits please ensure that income categories are used, and when entering checks, ensure that expense categories are used. Major categories have similar names. The categories shown below present a sample of major categories and sub-categories Typical Income Account Categories 1. Discipleship a. Children s Ministry b. Men s Ministry c. Vacation Bible School d. Women s Ministry e. Youth Ministry 2. Event Income 3. Evangelism NOTE: Not all income accounts shown. 5

10 Typical Expense Account Categories 1. Administration a. Auditor-Bookkeeper b. Computer & Supplies c. Congregational Apportionment d. Denominational Apportionment e. Office Supplies f. Pastor s Monthly Expenses g. Pastor s Salary & Benefits h. Petty Cash i. Photocopying 2. Discipleship Ministries a. Children s Ministry b. Men s Ministry c. Vacation Bible School d. Women s Ministry e. Youth Ministry 3. Event Expenses 4. Evangelism-Outreach NOTE: Not all expense accounts shown Report Name Initialization The WCG setup includes 3 sample reports for required district and denominational reporting. These reports must be initialized and customized before they can be used. This section outlines the steps to initialize the reports. 1. Open Quicken and select Reports from the Main Menu, then click Reports and Graphs Center (first item in drop-down menu). Reports Menu Screen Memorized Reports screen appears. 6

11 Memorized Reports Screen 1. Highlight (click once on) Memorized Reports and Graphs. Three reports will be displayed on the right side. The first is My Church Account Balances. 2. Highlight the My Church Account Balances report. Either double click this report selection or click the create report button at the bottom of the screen. 3. The following dialog box appears. No Transactions Dialog Box 1. Click the Yes button. The following screen appears. 7

12 Report Layout Screen 1. Highlight the title and replace the words My Church with the name of your local church (for example, Denver South). Accounts Layout Screen 8

13 Edit each of the reports as follows: 2. Click Accounts tab. 3. In the Selected Accounts box, select the Church Checking Account by clicking in the column to the left of the account name. A green checkmark will appear. 4. For this report only (Account Balances), ensure that all church bank accounts are selected. 5. Click Create Report. Memorize Report and Graph Screen 1. When the new report with the local church name appears, click Memorize on the menu bar. The Memorize Reports and Graphs dialog box will appear. 2. Type Finance & Advisory in the description box to remind you that this report is only for the Finance Committee and Advisory Council. 3. Click OK. Change the titles of the remaining reports in the same manner. Repeat previous 3 steps for the other default reports. For the Banking Summary Report only, on the Memorized Reports and Graphs screen, enter description of Members & Finance in place of Finance & Advisory. NOTE: After use, close out each report by clicking the Close button on the right side of the report menu (X next to How do I ) Deleting Default Shell Reports Click Reports in the main menu. Then click Reports and Graphs Center (first item in drop-down menu). Refer back to Reports Menu Screen for details. 9

14 Delete Reports and Graphs Screen 1. Click Memorized reports and graphs in the left menu. 2. Highlight My Church Account Balances by clicking once 3. Then click the Delete button in the lower right area. A screen will appear stating you are about to permanently delete a memorized report. Click ok. Repeat steps 1 through 3 deleting all reports with My Church in the title. NOTE: Ensure that each of the My Church reports were memorized with a local church name before deleting it. Otherwise that report will be lost and you ll have to manually recreate it Password Protection It is strongly recommended that the church s Quicken files be password protected. To accomplish this: Click on the File menu, highlight Passwords. When the next drop-down menu opens click File. In the drop down menu type the desired Password. Type it again to verify that it is correct. Write the password in a secure place so you won t forget it. Click the OK box to accept the password. Be sure one other person in the congregation is aware of the password, and make sure the financial committee knows who that person is. 10

15 12.0 QUICKEN: ENTERING TRANSACTIONS Quicken uses on-screen check registers to enter data. Each blank field is filled in just like a paper check. First, the checks and deposits that were made prior to the bank statement but which have not cleared the bank must be entered as follows: Quicken My Finances Screen 1. Click on the Main View Tab on the right side on the screen, or click on Finance, then My Finances on the top menu bar. 2. Next click on the account to be updated. The check register now opens. 11

16 Check Register Screen 12.1 Check Register Instructions Screen Check Register Field Entry Instructions Description Date Date of transaction. Num Check number or Finance Category. Payee Who the check was made out to. Payment or Deposit Amount of check or amount of deposit. You can only enter in one box, not both. Category Select Income or Expense depending on the type of entry. As you begin typing the entry, the nearest category will appear. Memo Enter What the transaction was for. This is an optional field to fill in. Although optional, it is wise to put a comment on any nonrecurring entry. Click this field to place the check into memory. You can also press enter at any point in the transaction and it will be saved. Split Allows you to split one transaction between 2 or more incomes or expenses. Example: Women s Ministry and Children s Ministry purchase items for a banquet and split the cost. When finished, exit Quicken by clicking on the Close button in the top right corner or by clicking File, then Exit in the top menu bar. 12

17 12.2 Electronic Fund Transfer (EFT) Transactions It is important, but easy to forget, to enter all Electronic Fund Transfers (EFT) activity into your books. Any income electronically transferred to the congregation s bank account (credit card income and/or mail income sent to the denomination on behalf of your congregation), as well as denominational apportionments and other recurring expenses electronically transferred from your account must be entered in the Quicken checkbook register. If these transfers are not entered, the register will not reconcile with the bank account statement. All EFT transfers should be entered in the check register as EFT (electronic transfers) in the Num field. The denominational income amount should be entered in the deposit field with an income category of General Fund. Do not make an entry in the WCG online (Internet) system for this income it has already been recorded by the denomination. For expenses, the amount of the outgoing transfer is entered in the payment column as one entry. However, the category needs to be split and entered as follows: Administration:Congregational Apportionment amount Administration:Denominational Apportionment amount Administration:Pastor s Salary & Benefits amount If you set up EFT agreements with any of your vendors (hall rent, mortgage, etc.) be sure to record those appropriately as well Special Event Income And Expense Transactions As mentioned in chapters 3 and 4 of the Financial Management Manual regarding income and disbursements, congregations occasionally host special events that create both income and expenses that must be accounted for separately. The Quicken software provided to each congregation is set up with two specific categories to track special event funds. The first is the income category Event Deposits and the second is an expense category, Event Expenses. By using these categories the accounting reports will display event income and expenditures separate from other categories. If more than one event is carried out at the same time, the treasurer will want to create sub-categories of income and expenses for the specific events. Instructions for making sub-categories are found in the Quicken help file. 13

18 12.4 Adjusting Transaction Entries Sometimes an account record may need to be adjusted (edited) because the wrong amount was entered, funds were allocated to a wrong income/expense category or some other reason. Corrections to invalid records (deposits or checks) should not be made by deleting or modifying the incorrect entry. Rather, they should be made by making adjustment entries that normally involve two steps The first is to enter a transaction that, in affect, cancels the original transaction, and second is to enter a correct transaction. Please note that the checkbook register entries (if used) must agree with the Quicken check register. The following example assumes a $75.00 check entry was mistakenly made in Quicken for a check that was actually written for $ Go to the My Finances page (Main View Tab) just as you would to enter transactions. Select (click on) the account to be edited (Church Checking). 2. Use the scroll bar on the right side (if needed) to find the record to be corrected. Click on the CLR column to clear that check. 3. Go to a new check register entry and make out a new check that is identical to the original (including check number) except; the amount should be a negative number ( ), and in the memo field show that this is a correction. 4. Click on the CLR column to clear the check and click Enter to record the check. 5. During this procedure Quicken will inform you that you are using a duplicate check number. Click OK in the dialog box to accept this check number. 6. Enter another new check entry (with the same check number) and make it out with the correct amount (175.00). In the memo field state corrected amount. Do Not clear this check unless the cancelled check has been returned from the bank and the account is being reconciled. 14

19 13.0 QUICKEN: ACCOUNT RECONCILIATION Reconciliation is the process by which the bank statement and the computer software are shown to be in agreement. This process should be completed soon after the bank statement is received each month. The treasurer will run the following report and give this to the account reconciler who will compare the report with the actual bank statement to confirm that they agree Reconciling Accounts Reconcile Menu Screen 1. Click Banking on the Main Menu. 2. Then choose Reconcile. Reconcile Screen 15

20 Reconcile Instructions Screen Reconcile Field Entry Instructions Description Opening Balance Balance from Bank Statement Ending Balance Balance from Bank Statement Service Charge Monthly service charge assessed by bank. Date Date of service charge. Category Fund service charge is being added to. If no charge leave blank. Interest Earned Interest earned on account. Date Date interested earned. Category Credit interest to General Fund. If no interest leave blank. Click OK Reconcile Bank Statement Screen 1. Clear items that were included with the current bank statement (checks & deposits) by clicking in the CLR column to the left of each item 2. When all cancelled (returned) checks and deposits are cleared, click Finished. When asked to create a reconciliation report, click Yes. 16

21 NOTE: If the bank statement and the computer software don t agree, look for checks or deposits that were cleared (or not cleared), or for ones that may have an incorrect figure entered Printing a Reconciliation Statement Reconciliation Report Setup Screen Type a title for your report Click Print Sample Reconciliation Summary Report 17

22 13.3 Printing a Check Register Reconciling And Producing A Check Register Each month after the bank statement and cancelled checks are received and the account is reconciled, a check register should be printed for inclusion in a reconciliation packet that goes to the account reconciler. Print the check register as follows: Click on the checking account to bring its register on screen. (See Chapter 12) Check Register Screen Click the print icon above the check register. The following dialog box appears: 18

23 Print Check Register Screen 1. Enter a title for the report. 2. In the Print Transactions area choose the beginning and ending dates for the register. 3. Click Print Report. Sample Check Register Report 19

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25 14.0 QUICKEN: MONTHLY, QUARTERLY & ANNUAL FINANCIAL REPORTS Quicken has a large number of reports that can be used for various reporting functions. This section covers the three most important reports for local church use. As the treasurer becomes familiar with Quicken and the need arises, other reports and graphs can be used. The three reports recommended for local church use are the Account Balances, Banking Summary, and Itemized Categories. These are for general account reporting. Two other essential reports, Reconciliation and Check Register reports are explained in chapter 13, Quicken: Account Reconciliation. The Banking Summary Report can be printed for both the leadership team (pastor, finance committee & advisory council) and the membership. Each month, a banking summary report is printed for that month and given to the leadership team. Each quarter (January through March, etc.) the report is printed for a three-month period and given to the membership as well. At the end of the year the report is printed for the entire year and serves as the year-end summary report. All three reports are printed from the Memorized Reports and Graphs menu. When Quicken was installed/modified with the denomination s install program, the first three reports were automatically installed as Memorized Reports. However, before running one of these reports they should have their titles changed to reflect the name of the local church. See chapter 11, Quicken: Installation and First-Time Setup, for instructions on setting up these reports Running and Printing Memorized Reports To run a report click Reports on the Main Menu. Then click Reports and Graphs Center. See screen shot below. Accessing Reports and Graphs Screen Reports and Graph Screen Appears 21

26 14.2 Monthly Reports Click Memorized Reports in the left column and then highlight the desired report. Note that under the report name is who normally receives the report (See chapter 11 Memorized Reports screen ). Reports Screen Click Create Report to bring the completed report on screen. Customize Warning Screen Click Ok Your report will now appear as below 22

27 Report Detail Screen Click on the down arrow next to Earliest to Date and to the left of the From date and select Last Month (this takes into account that you are running your report the following month, if you are running it at the end of the month you will need to select Current Month) 2. Click the down arrow next to Interval or Column depending on which report you are running and select None Click the Update button Click Customize Enter the following under Report Layout for the Report Title City and State of Church Monthly Account Balances i.e. Pasadena, CA Monthly Account Balances Click Create Report button Click Memorize at the top of the report Click ok Print the report see section 18.3 for printing the report using PDFCreator Click the X in the upper right corner above the Update button Repeat the above for the Itemized Category and Banking Summary Report 14.3 Quarterly Reports Click Memorized Reports in the left column and then highlight the desired report. Note that under the report name is who normally receives the report (See chapter 11 Memorized Reports screen ). 23

28 Reports Screen Click Create Report to bring the completed report on screen. Customize Warning Screen Click Ok Your report will now appear as below Report Detail Screen Click on the down arrow next to Earliest to Date and to the left of the From date and select Last Quarter (this takes into account that you are running your report after the quarter is over, if you are running it during the quarter you will need to select Current Quarter) 2. Click the down arrow next to Interval or Column depending on which report you are running and select Month Click the Update button Click Customize 24

29 Enter the following under Report Layout for the Report Title City and State of Church Quarterly Account Balances i.e. Pasadena, CA Quarterly Account Balances Click Create Report button Click Memorize at the top of the report Click ok Print the report see section 18.3 for printing the report using PDFCreator Click the X in the upper right corner above the Update button Repeat the above for the Banking Summary Report 14.4 Annual Reports Click Memorized Reports in the left column and then highlight the desired report. Note that under the report name is who normally receives the report (See Chapter 11 Memorized Reports screen ). Reports Screen Click Create Report 25

30 Customize Warning Screen Click Ok Your report will now appear as below Report Detail Screen Click on the down arrow next to Earliest to Date and to the left of the From date and select Last Year (this takes into account that you are running your report after the year is over, if you are running it before year end you will need to select Current Year) 2. Click the down arrow next to Column or Interval depending on which report you are running and select Quarter Click the Update button Click Customize Enter the following under Report Layout for the Report Title City and State of Church Annual Account Balances i.e. Pasadena, CA Annual Account Balances Click Create Report button Click Memorize at the top of the report Click ok Print the report see section 18.3 for printing the report using PDFCreator Click the X in the upper right corner above the Update button Repeat the above for Banking Summary Report & Itemized Categories. NOTE: For the Itemized Categories report only from the sort drop down at the top of the report select Sort by Date/Account. 26

31 15.0 QUICKEN: BACKUP This section deals with back up for the local church s Quicken files. These instructions apply only to files kept on the congregation s computer. Files kept on the denomination s central computers (i.e. imis files entered and accessed via the Internet) are backed up and secured by denominational staff. It is strongly recommended that all church data files be backed up regularly. This includes word processing files, spreadsheet and database files, and any others necessary for the local church. They should be backed up at least weekly. In addition, all other computer files and programs should be backed up at least monthly through out the year. See chapter 17 for instructions to back up all other essential computer files. At the end of each year the Quicken files should be backed up to CD or tape drive. This backup should become a part of the church s permanent records Backing Up Quicken Files These instructions are specific for the local financial data files related to the Quicken software program. All accounting files associated with Quicken should be backed up each time data is entered Setting Quicken Back-up The first step in the back-up process is to set Quicken to back up after each use. Quicken General Options Screen 1. In the Quicken main menu, go to the Menu bar and select Edit. 2. Click on Options. 3. Then click on Quicken Program. You ll see the following Window: 27

32 Quicken General Options Screen 1. Click on the General tab. 2. Under an area called Backup, where it says Remind to Backup after Running Quicken: Times ; change from the default of 3 to Click OK 15.2 Setting Quicken s Back-up Folder These instructions direct you to back up your data each time to a standard 3 ½ floppy drive, typically your A:\ drive. 1. In the Quicken main window, go to the Menu bar and select File. 2. Then select Backup. You ll see the following Window: 28

33 Quicken Backup Menu Screen 1. In the next screen look for an area called Backup Location. 2. In the text box under Select the disk drive and path to the backup directory, erase what is there and type in: A:\ 3. Then click OK. Quicken Backup Screen 15.3 Making the Removable (Off-Site) Copy At this point Quicken is set to make a back-up copy in the A: folder each time accounting data is added and the program is closed. The final step is to make the removable (off-site) copy. 29

34 15.4 Quicken Back-up Strategy The next step is to determine whether to make one or two back-up copies. When one is made, it is kept off-site (in a location other than where the computer is stored). If two are made, one is kept on-site and one off-site. In either case a back-up copy that is stored off-site (not in the same building as the computer) is essential. A rotation of saves should be set up so that there will be multiple recent backups in case one is destroyed or lost. A 5-week rotation, based on a 1-month cycle (occasionally there s a 5 th week) is recommended. The back-up copy should be labeled based on which week of the month it is and the day the save was typically done. For example, if the bulk of the work is completed on Sunday, the set of floppy disks should be labeled as follows: 1 st Sunday, 2 nd Sunday, 3 rd Sunday, 4 th Sunday and 5 th Sunday Single Copy Back-up The following instructions assume the back up will be made on the floppy (A:) drive, and that ONLY Quicken files will be backed up. If another drive is used, substitute that drive in the instructions. Ensure that the floppy (A:) drive is set as the Quicken default. See Setting Quicken s Back-up Folder section Each time data is entered into Quicken and the program is closed, it will prompt the user to back up the files to the floppy (A:) drive. Simply follow the instructions to back-up the fiels before exiting Quicken Dual Copy Back-up To store two back-up copies (i.e. one near the church computer, and another as an off-site copy, you ll need to manually run the backup two times before closing Quicken. 1. When you have completed your entries, DO NOT close Quicken. Instead, click File, Backup from the menu bar at the top, or press Ctrl+B. 2. This will give you the backup window (see above). Insert a floppy disk into your A:\ drive, then click the OK button in the backup window. 3. Remove the floppy disk, then insert a different floppy disk into your A:\ drive. 4. Click File, Backup from the menu bar at the top, or press Ctrl+B. 5. This will give you the backup window. Since you have already inserted a floppy disk into your A:\ drive, click the OK button in the backup window. 6. Remove the second floppy disk. 7. Keep one copy in a safe place, and give the other copy to your offsite person to have in case of a major disaster. 30

35 16 QUICKEN: BUDGETING 16.1 Budgeting A budget allows a church to establish goals for the amount of money spent on each expense category or sub-category. For example, a church may budget $75 each month for Children s Ministry. By doing this the church says, We have adequate income to set aside this amount each month for ministering to the children. Once set, the expenditures must be tracked to determine that this amount is appropriate. The importance of budgeting and budget planning is explained in Chapter Two of the Financial Management Manual. Please review those procedures and set a detailed budget prior to attempting to input the budget into Quicken. A budget must be well thought out and planned in detail before it can be used effectively. After the budget is established it can be inputted into Quicken Budgeting with Quicken Quicken allows the budget amounts to be easily entered and tracked. Also, reports and graphs can be generated to display the budgeted items and how they relate to income. Due to fluctuations in income and expenses, the budget may need to be altered. Quicken reports and graphs will help the church spot discrepancies and easily change amounts budgeted Inputting the Budget After the budget has been established and approved it can be entered into Quicken. Click on Banking (Quicken Basic) or Planning (Quicken Deluxe) on the top menu bar. See chapter 11, Quicken: Installation and First-Time Setup, for instructions on setting up these reports. 31