ShelbyNext Financials Case Study: When to Start Over

Transcription

1 ShelbyNext Financials Case Study: When to Start Over (Course #F226) Presented by: Mark Fisher Shelby Consultant 2018 Shelby Systems, Inc. Other brand and product names are trademarks or registered trademarks of the respective holders.

2 Objective To discuss the options of when to start a new company with your financials and when to make adjustments with the current system and chart of accounts. Class leader leads discussion on adjusting a current financial system as well as making successful transitions to new chart of accounts and when/why churches decide to make major changes. This session presents the following topics: Options for How to Make Adjustments: Renumber accounts, add levels, move departments, etc. Use of new tools: Sub-Accounts and levels When to Adjust the current system Considerations and Conditions for starting over What to do when starting over 2

3 Options for Changing Current Chart of Accounts Use Sub-Accounts and Change Levels General Ledger > Modify > Account Structure > Settings Sub-Accounts: The feature in ShelbyNext Financials to allow the use of sub-accounts is probably the simplest change in considering the option of adjusting the current chart of accounts. It allows for drilling down for more detailed accounting under a parent account without adding additional accounts. When running reports, the sub-accounts can be displayed or hidden depending on the preference and need for reporting. In v.5, departments were created where now sub-accounts can suffice. 3

4 Options for Changing Current Chart of Accounts Cost Centers: Cost Centers are becoming useful in creating a level of reporting under the Fund. The use of Cost Centers can at times eliminate the need for separate funds. Some examples of Cost Centers would be separating ministry areas, operations, personnel, etc. Each Cost Center can have multiple departments under them. Other examples would be Restricted/Designated sections, Weekday schools, etc. One big advantage of using Cost Centers is the ease of making journal entry transfers between them. With transfers between funds, a debit/credit is required in each fund. Transfer between cost centers can be one debit/credit. Cost Centers fall under the fund level, so therefore only one balance sheet is required. 4

5 Options for Changing Current Chart of Accounts Change Account Numbers: General Ledger Modify > Chart of Accounts This can be useful when changing individual accounts but difficult when trying to renumber the majority of the chart of accounts. 5

6 Move Accounts between Departments: General Ledger > Utilities > Move Account Use this tool to move accounts between departments. This can be helpful when moving accounts that would fall best under a different department for reporting/accountability purposes. Move Account Structure This option can be used to move departments within Cost Centers if they are used. 6

7 When to Tweak or make Adjustments to Current Chart of Accounts Adding Funds/Cost Center for new building programs or capital campaigns Use sub-accounts. Better to utilize Special Reports for organizing reports for leadership and department heads in lieu of moving accounts around. Use Account Rights and Task roles to give staff access. Limit constant changing of chart of accounts. Re-evaulate the need for old business practices manual journals between accounts. When Should We Start Over? You inherit an old chart of accounts. New Leadership installed with new reporting needs and accountability. Church changes mission and direction. Limited options with current account number structure. Need to create a more standardized set of accounts across departments and funds. Want to take advantage of newer features and levels within ShelbyNext Financials. Inadequate reporting with current system. Current books do not balance and cumulative effect of bad numbers has compounded over the years. Balance sheet out of balance. Beginning balances have been changed manually and with no proof of changes. Cannot verify balance sheet balances --- Cash not reconciled to bank rec, and loan balances do not match bank balances. Current system too complicated and no one understands. Need to create a better template for growth with church plants and additional campuses. 7

8 What to do When Starting Over General Ledger: Need to begin processing a new company at the beginning of the fiscal year. Create a new company at any time and look at options. Anything can be deleted as long as no journal entries have been posted. Meet with leadership and stakeholders to decide on structure and design of new chart of accounts. Consider using standardized accounts within departments for ministry oriented. How do restricted/designated funds need to be managed? Are they numerous enough to warrant a separate fund, or can they be managed within one fund? Ensure all reporting needs can be accomplished with the new structure. Create new company in the current year. A journal entry will have to be created with ending balances. Use the year-end closing option to roll ending balances forward as beginning balances for the new company. This procedure may have to be completed multiple times depending on timing of good ending balances. Verify all balances.bank accounts, payroll liability accounts, loans, subledger balances, etc. 8

9 Payroll: Determine if a sql query can redirect payroll history to the new company. This depends on installed versus hosted versions. Verify employees and their personal info to include Social Security number and ACH info. This should be access from any company. Reconnect Compensation and Deduction Information to their respective GL accounts. Verify GL balance sheet GL links in Empoyer Information. W-2s can be run with more than one company if the new fiscal year is not aligned with the calendar year. Edit each employee s compensation and deduction types and rates. Run sample payroll. Accounts Payable: Make sure to choose the correct bank account. View transaction inquiry allows for searching all history across companies. Edit Vendors with default account numbers and correct them. Verify ACH information. Accounts Receivable: Create new Revenue Centers and Items to connect with new account numbers. Record all outstanding balances on bill to. Decide to bring forward one total or individual invoices. Verify outstanding balances within AR and beginning balances on balance sheet. Redo all recurring charges to ensure correct Items are being used. 9

10 Q&A Class Discussion 10

11 Mark Fisher Shelby Consultant Mark Fisher has been a Shelby Independent Trainer since 1998 and currently serves Shelby customers as a Shelby Consultant training in Shelby v.5, Arena, and ShelbyNext. He was previously the Business Administrator at Shandon Baptist Church in Columbia, SC where he gained valuable experience with Shelby software programs. Mark s unique blend of skills and experience allows him not only to train on how the software works, but also to integrate the software into practical accounting solutions and improve customers processes.