Dedicated Accounts hold monies reserved for a special purpose. They are normally short-term and specific enough that they do not require a fund of their own.
Since these accounts are designated for a special purpose the balances are allowed to roll over from year to year. However, budgets cannot be added to these accounts.
Dedicated accounts can be:
» Special use for assets
» and many more
An important point about Dedicated accounts is that they simply show the purpose of money that is held in the asset accounts. As a result, these balances are reported on the Balance Sheet as Liabilities. In other words, you should have more money in your total assets than you do in your total dedicated accounts.
Many churches have found having a separate bank account (like a savings account) set up for the dedicated balances helpful. You could even set up major or minor groups stating for which asset account they apply.
- The dedicated accounts can be found in the Accounts grid.
- Access the accounts grid by going to “Accounts” in the menu bar, choosing Account Types, and the selecting “Dedicated.”
- You can also click on the “A” in the toolbar and change the account type filter at the bottom to “Dedicated.”
- To add a dedicated account, click the Add button. Type in the name of this account.
- Key in the beginning balance if there is one. However, keep it mind that this money should already be in the asset account.
- Now choose or add the grouping categories you want. If you don’t choose to group this dedicated account, you will still need to pick a sequence number.
- When you are finished, click OK to save the account.