CNA Getting Started - User Guide

For those parishes who did not have a comprehensive conversion of the previous system’s data, the following instructions will help you get started using your ConnectNow Church Accounting System.

This will include:

Entering Vendors

Entering Open Bills

Entering Open Items for Bank Reconciliation

Entering Beginning Balances

Entering Current Period Changes (if not starting with the first month of the fiscal year)


Enter Vendors

While you can choose to enter your Vendors on-the-fly on a Bill Entry display, we recommend that you enter the vendors you pay on a monthly basis through the standard Vendor Entry display. This will allow you to enter Terms, Types and Account Distributions for each vendor that will save you time during your standard data entry.

To add a new vendor, click the Vendors icon.

Before you add a new vendor, look for the vendor’s name in the Quick Find or Find Record list to ensure that the vendor is not already set up in your system. This quick search helps to ensure that you don’t have duplicate vendors in your database.

Vendor Name: Enter the name of the vendor.

Check Name: Enter the name as it should print on your checks.

Address, Address 2, City, State, ZIP Code,and CountryEnter the vendor’s complete mailing address.

Account Number: Enter the vendor’s account number for your organization’s account.

Terms: If you have established Vendor Terms (available from the Setup screen), those options will be available for selection from this lookup table. Selecting terms for a vendor will automatically populate the Due Date and Discount Date on any bills entered for this vendor.

Type: If you have established Vendor Types (available from the Setup screen), those options will be available for selection from this lookup table.

Contact, Phone Number, Cell Phone, Fax, Email:Enter details for the primary ccontact person within the vendor’s business organization.

WebPage: Enter the vendor’s website.


Click the Submit button to save the record.

The Vendor’s name will now be available from the Vendor lookup tables in the software.

NOTE: The Account Distribution, 1099/Checks, and Credit/Notesoptions at the top of your Vendor screen will be dimmed/unavailable until you have clicked Submit to save the new vendor record.

Vendor Account Distribution

If a vendor is to be paid from the same and/or multiple accounts, you can save data entry time by setting and saving distribution options in the vendor record. You can then apply them (or opt not to apply them) to bills entered for that vendor.

To set up distribution options, complete the following steps:

  1. Click the Vendors icon on your toolbar.
  2. Find and view the vendor record.
  3. Click Account Distribution.
  4. Click in the row #1 Account lookup table, choose the first account, and enter the amount of the distribution in the Amount field.5. Click in the row #2 Account lookup table, choose the second account, and enter the amount of the distribution in the Amount field.
  5. Add additional accounts and amounts as needed. If you need to add more than three accounts, <Tab> to the More Lines link and press <Enter> to add two additional rows to the list.
  6. Click the Submit button to save the account distribution information to the vendor record.

Each time you enter a new bill for a vendor that has an account distribution, you will be asked if you wish to apply the distribution options to the bill.

Click OK to apply the distribution or click Cancelto add a bill without the distribution amounts. If you click OK, the accounts will be listed on the Bill Information screen. You can edit or delete the accounts if needed.

 

Enter Open Bills

For new/first time ConnectNow Ledger & Payables clients,you may have prior year Bills that have not been paid, that you would like to pay in the new fiscal year using ConnectNow Ledger & Payables.

 

If using the Cash Accounting Method

Simply enter the bill as a new bill in your system. Since the Cash Accounting Method relies on the Check Date to record the transaction on your Financial Statements, the Invoice will be held until the check is issued, at which time the transaction will appear on your Financial Statements.

If using the Accrual Accounting Method

If your church is using the Accrual Accounting Method, the bills entered in the prior fiscal year have already updated your Accounts Payable account.

Since you will be entering the Beginning Balance for your Accounts Payable account, you will need to enter the prior year unpaid bills as a “pseudo bill”, which will have no affect on your Accounts Payable balance.

  1. From Ledger & Payables, click Bills.
  2. If you have more than one Accounts Payable account, select the appropriate Accounts Payable account.
  3. Create a bill for the vendor that was entered in a prior fiscal month/year that has not yet been paid. Use the first day of your current fiscal year in the Invoice Date field.
  4. Under Item #1, enter the SAME SHORTCUT NUMBER AS YOUR ACCOUNTS PAYABLE ACCOUNT, and then enter the amount of the bill and a comment such as, Prior Year Unpaid Bill.
  5. Click Submit.

This bill will now be available to pay, but will not affect your previous Accounts Payable balance until the bill is paid.

After entering all prior year unpaid bills, click Reports |Transactions | Bill List and print a list of the bills to be paid. This total of those unpaid bills should equal your Accounts Payable Beginning Balance.
 

Enter Open Items for Bank Reconciliation

For new/first time ConnectNow Ledger & Payables clients,you may have prior year, uncleared checks and deposits on your bank statement that you need to account for when processing the Bank Reconciliation.

Using the last month’s bank reconciliation report, find any transactions that had not cleared the bank from a prior month/year.

 

Prior Year Uncleared Check

You can create a “pseudo check” in ConnectNow that will be available to clear on your Bank Reconciliation, but won’t affect your balance.

  1. From Ledger & Payables, click Bills
  2. If you have more than one bank account, select the appropriate bank account.
  3. Create a bill for the vendor that was paid with a check from a prior month/year that has not yet cleared your bank. Use the first day of your current fiscal year in the Invoice Date field.
  4. Under Item #1, enter the SAME SHORTCUT NUMBER AS YOUR BANK/ASSET ACCOUNT, and then enter the amount of the check and a comment such as, Prior Year Uncleared Check.
  5. Click the Assign Check Number link. Assign the original check number of the check from the prior month/year that has not cleared your bank, and use the first day of your current fiscal year in the check date field. Click Save and Submit.

Prior Year Uncleared Deposit

You can create a “pseudo deposit” in ConnectNow that will be available to clear on your Bank Reconciliation, but won’t affect your bank balance.

    1. From Ledger & Payables, click Deposits.
    2. If you have more than one bank account, select the appropriate bank account.
    3. Use the first day of the current fiscal year in the Deposit Date field.
    4. Under Item #1, enter the SAME SHORTCUT NUMBER AS YOUR BANK/ASSET ACCOUNT, and then enter the amount of the deposit and a Comment such as, Prior Year Uncleared Deposit.
    5. Click Submit.

Beginning Balances

 

Gathering Information

If you did not have a comprehensive conversion from your previous application, you will need to enter Beginning Balances for your asset, liability, net asset, and dedicated accounts.

NOTE: Beginning balances are not applicable to income and expense accounts.

We recommend you take the Statement of Financial Position(i.e., Balance Sheet) as of the last day of your previous fiscal year from your previous application and use this as your base when entering beginning balances.

Review the list of accounts and enter the amounts in the appropriate Debit or Credit column in the Ledger and Payables system.

Refer to the Debits and Credits table below to help you determine the affect a Debit or Credit has on the various account types.

Account Type

Typical Account

Typical Balance

Debit Effect

Credit Effect

Asset

Savings

Debit

Increase

- Decrease

Liability

Mortgage

Credit

- Decrease

Increase

Net Asset

Equity

Credit

- Decrease

Increase

Income

Offerings

Credit

- Decrease

Increase

Expense

Office Supplies

Debit

Increase

- Decrease

Dedicated

Memorial Fund

Credit

- Decrease

Increase

 

























Enter Beginning Balances

  1. Click the Process button
  2. Choose Beginning Balance.
  3. Enter the first day of your current fiscal year in the Date field.
  4. To enter the balances of an Asset Account (Checking Account, Savings, Petty Cash, etc.)

Debit (Increase) the Asset Account

  1. To enter the balances of a Liability Account (FICA, Federal Taxes, Church Mortgage, etc.)

Credit (Increase) the Liability Account

  1. To enter the balances of a Net Asset Account (a.k.a. Fund Balance or Retained Earnings)

Credit (Increase) or Debit (Decrease) the Net Asset Account

  1. Verify the Debits and Credits are equal.
  2. Click Submit when complete.


If you have questions about the effect of a Credit or Debit on your balances, refer to the chart below to make sure your entry is correct.

Account Type

Typical Account

Typical Balance

Debit Effect

Credit Effect

Asset

Savings

Debit

Increase

- Decrease

Liability

Mortgage

Credit

- Decrease

Increase

Net Asset

Equity

Credit

- Decrease

Increase

Income

Offerings

Credit

- Decrease

Increase

Expense

Office Supplies

Debit

Increase

- Decrease

Dedicated

Memorial Fund

Credit

- Decrease

Increase

 



Entering Current Period Changes

If you choose to begin using ConnectNow Ledger &Payables in a month other than the first month of your current fiscal year, andif you choose NOT to convert your current system’s data, we recommend that youenter the Current Period Changes for each fiscal month as a Journal Entry. This Journal Entry will record the totals only of the activity for each account, providing you with more complete reporting for the year.

Start by printing or collecting a Statement of Activities (a.k.a.Income Statement or Profit and Loss Statement) from your current accounting application for each month of the current fiscal year for each Entity used in your system (i.e. Church, School, Daycare, etc.). Print the report in a Detail format, and include a column for the Current Month Actual.

Next, print or collect a Statement of Financial Position(aka Balance Sheet) from your current accounting application for each month of the current fiscal year through the current month for each Entity used in your system (i.e. Church, School, Daycare, etc.). Print the report in a Detail format, and include a column for the Current Month Change.

  1. Click the Journal Entry button.
    2. Enter the last date of that fiscal month in the Datefield.
    3. Enter each Income Account listed on the Statement of Activities. To record an Increase effect for an income account, record the amount in the CREDIT column.
    4. Enter each Expense Account listed on the Statement of Activities. To record and Increase effect to an expense account, record the amount in the DEBIT column.
    5. Enter each Asset Account listed on the Statement of Financial Position. To record an Increase effect for an asset account, record the amount in the DEBIT column.
    6. Enter each Liability Account listed on the Statement of Financial Position. To record an Increase effect to a Liability account, record the amount in the CREDIT column.
    7. Enter each Dedicated Account listed on the Statement of Financial Position. To record an Increase effect to a dedicated account, record the amount in the CREDIT column.
    8. Make sure the total Debits equals the total Credits entered on the Journal Entry.
    9. Click Submit.
    10. Repeat this process for each Entity used in your system.

Check Your Work and Close the Month

Once the Journal Entries have been entered for the month’s activity, print a new Trial Balance report from ConnectNow Ledger &Payables.

  1. Click the Reports button.
  2. Select Transactions and choose Trial Balance.
  3. Print the report using the Current Month, or select a Date Range for that month and click Preview Report.
  4. Compare the Trial Balance from ConnectNow Ledger & Payables with the Trial Balance from your old accounting applications.
  5. Once you’re confident in your data entry, close the current fiscal month.
  6. Click the Process button.
  7. Choose End of Month.
  8. Click Submit.

Repeat the steps for Entering Current Period Changes for each month in your current fiscal year until you are ready to begin entering data in your current fiscal month.

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