More Accounting Processes

In this chapter, we will discuss the other duties you will be taking 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 one simple step in Jewel. It is found in the main menu Quick Links and is called "Write Checks." Writing checks in Jewel actually performs two key functions. One is to actually write the check to print and use. The other function is not quite so obvious. The action of you typing in the information to make your check is actually stored in Jewel and recorded wherever necessary in the bookkeeping. When writing checks, always remember that funds are only to be used for their intended purpose. Also, before you write the check, look at your financial summary to ensure that you have a sufficient amount of money available. The most common checks you will be writing consist of utility bills for the church. These type of payments are to be paid out of the church expense account, and if you have a more detailed budget, will come out of a "Utilities" sub account. Other checks you write will be for church organizations. These checks will come out of organization funds. When writing checks for an organization, the check is usually written to the vendor they are purchasing from, rather than to the organization leader. Note that you can write checks in a new month without having closed the previous month. Okay, now let's talk about how it's actually done!

From your main screen Quick Links in Jewel, 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 formation 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 never need to change it.
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 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 a new name and return to writing your check.
5. The dollar amount of the most recent check written to this vendor will be automatically entered. If necessary, change this amount to what you need THIS check written for. After typing in the correct amount, press Enter. Notice that the amount automatically shows up in writing.
6. Enter a Memo in the memo text box, indicating what the check is being written for.
7. Choose the Account the check is to be taken from.

At this point, you can either print this check (check “Print this Check” then click the button “Print Checks”) or write more checks (click the button “New Check”, or press F8). You can print multiple checks after writing them, making sure “Print this Check” is checked, and clicking “Print Checks” when you are finished writing all your checks.

Important:If you still want to write your checks manually, 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 – an online purchase for example. You will need to make what we call an “electronic payment.” Go to Write Checks, select the vendor to write the check to, then locate “Electronic Payment” found to the right of the accounts on the check stub. Click to check “Electronic Payment.” “Make Electronic Payment” now appears at the top of your window. The procedure is exactly the same as for writing checks. The only difference is that no check number will be used.

FAQs

What check format does Jewel use?

Same as Quickbooks format which is one sheet with check at top and 2 stubs.

Can I delete a check in Jewel?

No. However, you CAN void checks. Voiding a check will remove the check number from the sequence and will not affect the balance. To void a check, click on Accounting, Void a Check. Select the check you wish to void, verify the memo field, then click OK.

Why are two different check numbers showing up on my printed checks? And how do I fix it?

Go to Maintenance → Edit Accounts → Checking and look at the MICR line. Make sure it reads “nnnn” instead of a real number. These last four digits represent a check number, so if there is a real number entered - that is the extra number showing up on your check. To fix it, change the numbers to "nnnn". Your checks should now print with the correct check number.

I have two checks with the same check number. How did this happen, and how do I fix it?

The most likely explanation is that the 1st check was written, but you did not click OK or Next Check. Then you wrote another check over that same one and only the second check was recorded. Fix: Enter the 1st check again in Write Checks and explain the duplicate check number in the Memo line, then make electronic payment.

My checks are not lining up right when printed. How do I adjust the alignment?

Go to Maintenance → Properties → Reports. In the lower half of the screen, find the section "Report and Check Calibration." Type in numbers for how far over in each direction you think it needs to move, following the scale given on to the right (1/16 = 90; 1/8 = 180; 1/4 = 360). After keying in appropriate numbers, click Print Calibration Page. Make further adjustments until it is lined up appropriately. Note that these adjustments move the entire content, you can't change individual lines of the check.

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 simple instructions:

1. Click on Transfer Funds on the main screen.
2. Look in the upper left corner. The date defaults to today's date. This can be changed if you need the transfer to show up under a different date. 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.
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. Notice the text just beneath the date. 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.
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. Be careful not to click Cancel - this will remove all the information you just entered. Clicking OK will save and complete the process.

If at any point you have made an error and just want to start over, click the "Cancel Edit" button. This will delete all the information you just keyed in and let you start a new transfer. You can also look at a record of previous transfers by clicking the "Transfer Report" button. Also, notice the insert and delete buttons in the center of the screen. This is so you can delete or insert a single account, rather than completely starting over. To delete, select the account you need to remove, then click delete. To insert an account, either press ENTER after the previous account keyed in, OR click the insert button.

Bank Reconciliation

Below Transfer Funds on your Jewel Main Screen is Reconcile. It is very important to keep your records balanced with the bank. This will help catch any errors as well as ensure that any bank fees or interest earned are entered into your records in Jewel. Please note that while this is done monthly, it does not necessarily have to be completed before you close the month. If the bank statement for your current month does not arrive until the beginning of the next month, it is fine to go ahead and close the month. Simply perform the bank reconciliation promptly upon receiving the bank statement - it does not matter at what point you are in the month with your other bookkeeping. Be sure to reconcile ALL your bank accounts, if you have multiple, including savings accounts.

Here are the steps to follow when performing your Bank Reconciliation:

1. On the Jewel main screen, click Reconcile.
2. In the top left text box, under Bank Account, select the account you are reconciling.
3. Look at your Bank Statement and find the Ending Balance for this period. Enter this amount in the Ending Balance text box located beside the bank account name.
4. Notice that all of the transactions you have performed since the last reconciliation show up under Deposits/Interest Earned and Checks Written/Bank Fees. Going by your bank statement, click beside each transaction which the bank has processed - a check mark will appear indicating that the transaction is cleared.
5. If there are any entries on the bank statement which have not been recorded in Jewel, such as interest earned or bank fees, you must make record of it in Jewel. To do this, see the lower right corner of the Reconcile screen where it says "Add Entry." Click New Entry and enter in the appropriate information. If it is a bank fee, enter the amount under Expense. If it is interest earned, enter the amount under Income. Once you have entered the information, click Add Entry. The entry will now show up under Deposits or Checks Written to the left.
6. After check marking all transactions shown on the statement as well as adding entries, check to make sure under Balances (just beneath picture) that the Difference between the bank ending balance and the cleared ending balance is zero. If it is not zero, you will need to look for any missing/extra entries and make the necessary corrections. If you need to review your Deposits and Checks in more detail, click on the appropriate button in the upper right corner.
7. Once the Balance is zeroed, you are done! At this point, you can print your reconciliation for your records - click the print button in the upper right corner.
8. Click OK. Note that you must click OK to complete your work. Clicking Cancel will undo all your work.

FAQs

Can old bank reconciliations be viewed/printed?

Yes. From the Main Screen QuickLinks, select “Reconcile.” In the Reconcile window, click the button “Previous Bank Recs.” Here you can select the desired bank reconciliation for viewing and/or printing.

I'm trying to do a bank reconciliation, but there are no checks showing up! What happened, and how can I fix it?

Your checking account may have been accidentally changed to a Local Fund. It can be changed back by going to Maintenance, Edit Accounts. Click on your Checking Account then to the right under Account info look to see what Type it is. If it is not correct, click in the Edit box. Click on type Bank Account (Checking, Savings). Highlight another account by clicking on it OR click OK to accept this change and leave.

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, here is where you can make that entry. The General Journal is for entering items such as bank fees or interest earned.

NOTE:Do NOT use General Journal Entry for: Contributions/Deposits, Fund transfers, checks, NSF reversals, budget allocation, or bank reconciliation.

To make an entry:

1. Select Accounting from the Main Menu, then select 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 Deposits and Interests Earned for an increase in funds OR Checks Written and Bank Fees for a decrease in funds.
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, this is where you can do it.

1. Select the check. You can choose the time period and sort order to display. Click on the check you wish to void.
2. Enter the memo. Verify that the memo accurately records what you are doing.
3. Click OK.

The check you selected has been recorded as void.

NSF Check Reversal

The NSF Check Reversal's purpose is to keep record of non-sufficient fund checks (bounced checks) and their corresponding bank fees, if applicable. Here, you can find the appropriate check, credit accounts for changes needed, and add any expenses charged to your account due to bank fees. An NSF Check reversal can be performed at any time. It does not even need to be done within the month the check was written.

To access the NSF Check Reversal screen, go to "Offerings" in the Jewel menu. Click on the top menu item, "NSF Check Reversal." In this screen, notice that there is a window listing the checks which have been deposited.

Follow these simple steps to perform an NSF Check Reversal:

1. Time Period Select which time period of checks you would like to view, either the last 3 months or all checks. The checks shown in the box below will change according to the time frame you choose.
2. Sort Order This option helps you find the check you are looking for. You may select whether to sort by date, donor, check number, or check amount.
3. Choose a Check Highlight the check to be reversed by clicking over it with your mouse. The line you have selected will change to a blue background. Make SURE you select the correct check!
4. Enter Bank Charge If your bank does not charge a fee, simply leave this box 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. The date shown is the date you are making this record. The Memo that appears may be sufficient to describe this transaction.
5. Now click OK to complete the NSF check reversal.

Import from AdventistGiving

Jewel can import offering information from AdventistGiving.

AdventistGiving does not, at the date this is being written, offer an easy way to export offering data. However, if you download your monthly report from AdventistGiving, Jewel can extract the information and import this report. Here is how to do it:

1. Download the AdventistGiving report as usual, and save the file to Documents\Jewel

2. Open Jewel.
   

   Click on Start New Offering
   

   Change the date
   

   Click on Import from AdventistGiving
   

   Highlight the AdventistGiving .PDF file - be sure it is the latest file
   

   Click Open - verify the date and amount to be sure you have the correct file
   

   If no accounts or names are in red, click OK and skip to #5

3. Map Accounts
   

   Double-click an account in red, or highlight it and then click the Map Account button
   

   Choose an account from your database that matches the AdventistGiving account
   

   Click OK - once mapped, you will not need to do this again on the next month's report
   

   When all accounts are mapped, continue to Map Donors

4. Map Donors
   

   Double-click a name in red, or highlight it and then click the Map Donor button
   

   Choose a name from your database that matches the AdventistGiving donor, or choose New Jewel Donor and add the information
   

   Click OK - once mapped, you will not need to do this again on the next month's report

5. Click OK - when all red accounts and donors are mapped,
   

   Make Deposit screen will appear
   

   Click OK

6. That's all! The AdventistGiving information has been entered into Jewel. Finish closing the month.

7. Create a folder for AdventistGiving .PDF files
   

   Move the AdventistGiving file you just used from Documents\Jewel to an AdventistGiving folder.

   The new file downloaded each month will be the only .PDF file in Documents\Jewel.

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.