consolidating with another church

[cbrown]

Neil, we will be consolidating with a UCC church this year and I'm wondering if it's possible to set up PowerChurch in advance with their account info. We will have one set of books after we consolidate. What is the easiest way to enter their budget categories and then fill in the $ blanks when the time comes? I was thinking perhaps set up another Accounting Fund (02) but not put values in it yet. That would at least give me a chart of accounts to work with. Is it possible to have two separate accounting funds but only have Fund(01) report to our financials? I'm guessing that with so many churches following this path of consolidation that this had been done. I hope so! Thanks.

[NeilZ]

Neil, we will be consolidating with a UCC church this year and I'm wondering if it's possible to set up PowerChurch in advance with their account info. We will have one set of books after we consolidate. What is the easiest way to enter their budget categories and then fill in the $ blanks when the time comes? I was thinking perhaps set up another Accounting Fund (02) but not put values in it yet. That would at least give me a chart of accounts to work with. Is it possible to have two separate accounting funds but only have Fund(01) report to our financials? I'm guessing that with so many churches following this path of consolidation that this had been done. I hope so! Thanks.

OK .. if I follow you, you're thinking of creating a separate accounting fund with all the other church's data. However, you only want to report to your current board on Fund 1.

Its possible, all you have to do when creating the reports is to filter for the Fund 01.

However, when are you going to consolidate? Will it be on your fiscal year barrier, or will it be mid-year. Since many churches do a Jan to Dec year, I'm assuming it will be a mid-year, consolidation.

However, how is this consolidation going to work, will it be a single entity or two campuses, or what. You talk as if they will have their own CoA even after the consolidation. Obviously, more info is needed.

[cbrown]

We will be in one building, consolidating mid fiscal year. Consolidating a UCC church and Presby church is not a new idea and is becoming more popular in order to survive for the future. The members of the new entity will belong to both denominations simultaneously. The financial books will be combined into one accounting fund. Yes, I do know how to combine accounting funds, when the time comes. Is that enough info? Thanks for your help.

[NeilZ]

We will be in one building, consolidating mid fiscal year. Consolidating a UCC church and Presby church is not a new idea and is becoming more popular in order to survive for the future. The members of the new entity will belong to both demonizations simultaneously. The financial books will be combined into one accounting fund. Yes, I do know how to combine accounting funds, when the time comes. Is that enough info? Thanks for your help.

In that case, may I suggest that you keep everything separate, then when the time comes you can update your existing system with any funds coming in. I would leave the other church's information in their own separate system, as they are still a separate legal entity, and subject to any payroll taxes, etc.

Once July 1st (I'm guessing) comes around, you can then close the other books, and move funds to the current operating fund. No need to merge budgets, or anything else, unless they're bringing over a separate mission support, and so on, and then you just create the accounts and enter a budget based on the next six months.

Its not as complicated as merging a business that's run under accrual accounting.

[cbrown]

That's certainly easier than I anticipated. Thank you.

[cbrown]

I'm thinking I may want to add fund 03 to track investments and investment interest but I'm a little hazy on how to move the existing accounts into a new fund. I know how to add the fund in "Maintain List of Accounting Funds" but not sure how to "Transfer" existing accounts and then delete them from fund 01. I searched the forum and manual but couldn't find specifically what I need. Also, the funds will use the same checking account. Thanks.

[NeilZ]

I'm thinking I may want to add fund 03 to track investments and investment interest but I'm a little hazy on how to move the existing accounts into a new fund. I know how to add the fund in "Maintain List of Accounting Funds" but not sure how to "Transfer" existing accounts and then delete them from fund 01. I searched the forum and manual but couldn't find specifically what I need. Also, the funds will use the same checking account. Thanks.

I'm thinking that you can add them to the new accounting fund, then using transfer accounts, move the funds to the account in the new fund, then disable the old one.

You won't be able to 'delete' them as they have transactions reflected against them, so all you can do is disable.

[cbrown]

So it's not the same as combining accounts where all the transactions get moved during the "move" ? Your solution is not difficult and I figured that would be your answer. Just needed to confirm. Thanks.

[NeilZ]

So it's not the same as combining accounts where all the transactions get moved during the "move" ? Your solution is not difficult and I figured that would be your answer. Just needed to confirm. Thanks.

I don't believe so, the transactions won't move, but they'll still be accessible if needed. I think its because each 'fund' can be its own entity, unlike moving things around in a single fund.

[cbrown]

Makes sense. Thanks again.