| Accounting Structure | <– Date –> <– Thread –> |
From: Lydia & Ray Ducharme (ducharm1 cadvision.com)
|
|
| Date: Wed, 4 Oct 2000 20:08:34 -0600 (MDT) | |
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Hi Jan,
You asked at the Bellingham Conference if I could provide you with our =
accounting structure. Here it is. I put it on the cohousing list in =
case anyone else was interested.=20
As I mentioned we use the Quick Books Accounting Program. =20
As far as our accounting structure, here's what I think your Treasurer =
would be particularly interested in:=20
1) the Equity Member Contributions (money from members who finance the =
project) are included in the liability section of the Balance Sheet (set =
up as ACCOUNT TYPE Long Term Liabilities). Enter the amount that each =
Equity Member contributes toward the project here. This amount will go =
towards the eventual price of their home.
2) We charge $100 to join and then $30/month in Operating fees. We cap =
it at $480 so that the early members are not penalized. The QUICK BOOKS =
ACCOUNT TYPE for these accounts is "Income".=20
3) Our Operating expenses include the following accounts so far - Hall =
Rental, Marketing, Hospitality, Baby Sitting, Books, Office Supplies, =
Service Charges and Telephone. The QUICK BOOKS ACCOUNT TYPE is =
"Expenses".=20
4) So far we've also incurred some project costs such as Development =
Consultants (by name), Incorporation, Interest (borrowing charges) and =
Legal Fees. I've set them up as QUICK BOOKS ACCOUNT TYPE "Other =
Expenses". When Marketing becomes a major expense of the project it =
will also be included here.
5) When the time comes, the amount charged to members for their units =
will be reported under ACCOUNT TYPE "Other Income".
Quick Books puts the "Income" and "Expenses" at the top of the Profit =
and Loss Statement (often called Income Statement).
It puts the "OTHER Income/ Expenses" at the bottom. That way we keep =
our OPERATING income and expenses separate from our DEVELOPMENT income =
and expenses (costs of our units).=20
That's how we're doing it so far. Other groups may have other ideas =
regarding the accounting. =20
Let me know if you or your Treasurer have any other questions. =20
Lydia Ducharme
WholeLife Housing
Calgary, Canada
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<DIV><FONT size=3D2>Hi Jan,</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>You asked at the Bellingham Conference if I could =
provide you=20
with our accounting structure. Here it is. I put it on the =
cohousing=20
list in case anyone else was interested. </FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>As I mentioned we use the Quick Books =
Accounting=20
Program. </FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>As far as our accounting structure, here's what I =
think your=20
Treasurer would be particularly interested in: </FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>1) the Equity Member Contributions (money from =
members who=20
finance the project) are included in the liability section of the =
Balance Sheet=20
(set up as ACCOUNT TYPE Long Term Liabilities). Enter the amount =
that each=20
Equity Member contributes toward the project here. This amount =
will=20
go towards the eventual price of their home.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>2) We charge $100 to join and then $30/month in =
Operating=20
fees. We cap it at $480 so that the early members are not=20
penalized. The QUICK BOOKS ACCOUNT TYPE for these accounts is=20
"Income". </FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>3) Our Operating expenses include the following=20
accounts so far - Hall Rental, Marketing, Hospitality, Baby =
Sitting,=20
Books, Office Supplies, Service Charges and Telephone. The =
QUICK=20
BOOKS ACCOUNT TYPE is "Expenses". </FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>4) So far we've also incurred some project costs =
such as=20
Development Consultants (by name), Incorporation, Interest (borrowing =
charges)=20
and Legal Fees. I've set them up as QUICK BOOKS ACCOUNT=20
TYPE "Other Expenses". When Marketing becomes a major =
expense of=20
the project it will also be included here.</FONT></DIV>
<DIV><FONT size=3D2><FONT size=3D2>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV>5) When the time comes, the amount charged to members for =
their units=20
will be reported under ACCOUNT TYPE "Other Income".</DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>Quick Books puts the "Income" and "Expenses" at the =
top of the=20
Profit and Loss Statement (often called Income=20
Statement).</FONT></DIV></FONT></FONT></DIV>
<DIV><FONT size=3D2><FONT size=3D2>It puts the "OTHER Income/ =
Expenses" at the=20
bottom. That way we keep our OPERATING income and expenses =
separate=20
from our DEVELOPMENT income and expenses (costs of our=20
units). </FONT></FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>That's how we're doing it so far. Other groups =
may have=20
other ideas regarding the accounting. </FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2>Let me know if you or your Treasurer have any other=20
questions. </FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>Lydia Ducharme</FONT></DIV>
<DIV><FONT size=3D2>WholeLife Housing</FONT></DIV>
<DIV><FONT size=3D2>Calgary, Canada</FONT></DIV></BODY></HTML>
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