YEAR-END: What to do?

WHAT IS THE EARLIEST TIME TO CLOSE THE YEAR in Donation Accounting and get into the new one?

WHAT IS THE EARLIEST TIME TO CLOSE THE YEAR in Donation Accounting and get into the new one?
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Revised on November 11th, 2015
ANSWER: The earliest should be a few days after the beginning of January, AFTER the last deposit of donations that belong to the previous year, to make sure that
1) all the cheques you received in December have sufficient funds;
2) all your bank deposit amounts in December are equal to those in your books.

For more details, scroll THE RIGHT MARGIN OF THIS WEBPAGE to find answers to the most common questions on this subject.

You must allow the banking system to process all the cheques and inform you if any of them has unsufficient funds.  Obviously, if your last deposit contains no cheques (only cash), this problem of finding a cheque with insufficient funds is solved!
Revised on November 11th, 2015
QUESTION: WHY must I wait until beginning of January before closing the year (my month of December)?

ANSWER: Because
1) a donor can give his donation at the last minute of December 31st in order for him to see it included on his official donation receipt of the year.
2) if a donor's cheque entered in December is returned without sufficient funds (NSF), you must be able to correct your books of December and exclude that donation (with insufficient funds) from the official donation receipt of that donor.

The law requires us to produce official donation receipts for amounts that correspond exactly with the money really received.

Revised on November 11th, 2015
QUESTION: WHEN is the LATEST DATE I can close the year in Donation Accounting?

ANSWER: Theoretically, it would be on February 10th.  EXPLANATIONS TO COME.

QUESTION: HOW will I know that I deposited a donor's cheque with insufficient funds?

ANSWER: The bank will send you by mail any cheque with insufficient funds that you have deposited.  They will also correct your bank statement accordingly.

You could unfortunately not be informed of such a cheque (with insufficient funds) if the address used by the bank (to send the bank statement, may it be the physical church ou a box office) is not easily accessible by you.  But ...

If you have access by internet to your bank account, you can see your last bank transactions in real time on any electronic screen (telephone, tablet, computer) including the correction made by the bank for the cheque with insufficient funds.  Even if this method does not provide you with the exact name of the involved donor, you may be able to identify him/her by the correction amount shown on your bank account USUALLY 24-48 hours after your deposit!  Sometimes, NSF cheques show up a week after the deposit.


QUESTION: HOW TO CORRECT A CHEQUE NSF (with Non Sufficient Funds) in Donation Accounting?

ANSWER: EXPLANATIONS TO COME.