Which Major Account Category should I use?

[mccauleyjean]

I have a few questions that are really “Accounting” questions and not questions about how to use the PCP program. We are just starting to use PCP and I have recently set up the basic Chart of Accounts Version 9 (which was very easy). Now I need some guidance about under which Major Account Category each of the following sub-accounts should go, since they did not show up on the Chart of Accounts:

RENT: I would like to set up a separate Level 4 Account labeled “Rent” and use 5620 as the Sub-Account number. Does this sound OK?

PROPERTY TAXES: We still have to pay property taxes on the land the church owns because we do not have a permanent building there yet. Where does this expense go? Does this go under the Liabilities Major Account (2000) or as an Expense Major Account (5000)? Can you recommend a specific Sub-Account number to use?

INCORPORATION FEES: Under which Major Account Category do annual incorporation fees that we pay to the state go? Can you suggest an appropriate sub-account number?

RELIGIOUS ASSOCIATION FEES: Under which Major Account Category should I put the annual fees that we pay to the state and national organizations for our religious denomination? Can you recommend a specific Sub-Account number to use?

INSURANCE: What about insurance (liability, fire, etc.) Does this go under the Liabilities Major Account (2000) or as an Expense Major Account (5000)? Can you suggest an appropriate sub-account number?

Thanks for all your help. This forum has been very helpful in getting us started in using Power Church Plus.

[Matt]

The Accounting Setup Assistant loads a standard chart of accounts. The user then needs to customize the chart of accounts as required to meet their specific needs. In response to several of your questions below you may need to set up some new detail and major account categories to track these items. The program offers great flexiblity to adjust the chart of accounts to exactly the way you want to see them.

Also, based on your descriptions all of your accounts you need to set up would be expense accounts and none would be liability accounts.