Transferring funds out of NCA's petty cash account
A reader asks.......
I see under Account Transactions you cannot transfer from Petty Cash to another account.  How do I get all that money out into the regular money fund so it can be used for expenses?
Under the NAIC club accounting software [NCA], the petty cash account was not considered part of the club's assets. The balance in the petty cash account was not reflected in the valuation statement, and members were not awarded units for their contributions to petty cash. This being the case, the petty cash account was used for non-deductible expenses in the NCA software.
With bivio, all expenses, both deductible and non-deductible, are considered club expenses and are reflected in the reports. Of course, for tax purposes, non-deductible expenses are not deducted.
So, we have a problem when clubs upload their NCA data to bivio, if these clubs had a petty cash account in the NCA software. Our reader asks how to get the petty cash funds into the regular checking account where it can be used for expenses.
First of all, we must determine where the petty cash funds are physically located. If they are already deposited in the broker/checking account, that would mean that the broker/checking account on the books would not agree with the broker/checking statement balance. For instance, your statement might show a balance of $100, while your books show $80 for broker/checking and $20 for petty cash. If this is the case, in bivio, you would simply enter members' contributions of $20 using the appropriate broker/checking account, and then delete the old petty cash balance. You would have to compute how much of the petty cash should be awarded to each member.
If, on the other hand, the petty cash is physically located somewhere else than the broker/cash account, such as in a petty cash box, you would simply make a new account in bivio for the petty cash box, and again enter members' contributions for the $20, using the new account. Then you would delete the old petty cash account.
After the above, your $20 petty cash would be a part of the books, and you could use the funds for expenses. One warning note - you will not be able to upload the NCA data into bivio after having made the above adjustments, because the NCA data will not reflect the petty cash as a part of the books.
It's a rather complicated subject for a small amount of money. Please let us know if there is any confusion about petty cash or non-deductible expenses.
Rip West
Saint Paul, MN