Can I set up additional current assets, such as pre-paid expenses?
q008.style.display = ‘none’; No. Although large corporations need to know about expenses that are paid in advance, keeping track of them in a small church is more trouble than its worth. Its more important to keep track of when payments are due and whether theyre within budget. Lets say you pay $300 at the beginning of each quarter for insurance. Current Assets on the January Balance Sheet will reflect the $300 that was paid out, but it won’t indicate that $200 was actually an advance payment for February and March. The fact that insurance companies usually bill quarterly, while churches usually produce a balance sheet monthly, means the budget needs to reflect that. Instead of budgeting $100 for insurance every month, budget $300 every three months. Our pre-school records are kept on a school-year basis, but our church records are kept on a calendar-year basis. Is it possible to have a separate fund for the school, and close it out based on the fiscal year? q009.style.display = ‘none’
