Difference between revisions of "Financial Cluster"

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(New page: == Introduction == We've arrived at a point where the various financial cluster stuff that has to get done fits into some convenient frequency categories. In principle, a single person c...)
 
 
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== Introduction ==
 
  
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We've arrived at a point where the various financial cluster stuff that has to get done fits into some convenient frequency categories.  In principle, a single person could handle all of the weekly, monthly, yearly, and incidental work.  But because we're all volunteers, it helps to spread it out.
+
== General Financial Responsibilities ==
 +
All duties are coordinated by the Financial Cluster Coordinator.  Ultimately the Board and specifically the Treasurer / CFO are responsible.
  
−
== Useful Links ==
+
=== Useful Links ===
−
* [[Bike Kitchen Money Flow]]
+
* [[Financial Cluster:Money Flow|Bike Kitchen Money Flow]]
−
* [[Monthly Accounting Duties]]
+
* [[Financial Cluster:Register Report|Register Report]]
−
* [[Register Report]]
+
* [[Financial Cluster:Gift Card Protocol|Gift Card Protocol]]
  
−
== Incidental Duties ==
+
=== Incidental Duties ===
−
I'll start with the incidental, which is managed by the Financial Cluster Coordinator. This is the category that requires the most, um, creativity and responsiveness.  The person fulfilling these duties needs ample flexibility to spend BK money and legally sign on behalf of the BK.  So this person should be the Treasurer in the corporate sense.  The sorts of things that this person does is included in the following list.  For more information, see the [[Financial Cluster Coordinator]].
+
This is the category that requires the most creativity and responsiveness.  The person fulfilling these duties needs ample flexibility to spend BK money and legally sign on behalf of the BK.  So this person should be the Treasurer in the corporate sense.  The sorts of things that this person does is included in the following list.  For more information, see the [[Financial Cluster Coordinator]].
  
−
* Being familiar with how the weekly/monthly/yearly jobs work and ensuring that they get done.
+
* Being familiar with how the weekly/monthly/yearly jobs work and ensuring that they get done.
 
* Checking the mail at least weekly and paying the bills.
 
* Checking the mail at least weekly and paying the bills.
 
* Main contact for vendors (i.e., PG&E, Golden Gate Disposal, etc.)
 
* Main contact for vendors (i.e., PG&E, Golden Gate Disposal, etc.)
Line 18: Line 18:
 
* Migrating incidental tasks to the Weekly, Monthly, and Yearly categories as possible.
 
* Migrating incidental tasks to the Weekly, Monthly, and Yearly categories as possible.
 
* Being responsive on email
 
* Being responsive on email
−
* Managing paypal and brown paper tickets money
+
* Managing PayPal and EventBrite ticket money
 
* Speak up about spending proposals
 
* Speak up about spending proposals
 
* Having a solid opinion about the BK financial situation, and promoting that opinion in meetings and on the mailing list.
 
* Having a solid opinion about the BK financial situation, and promoting that opinion in meetings and on the mailing list.
  
−
== Daily Duties ==
+
=== Daily Duties ===
−
These are simple tasks such as using the register and getting petty cash for stuff like TP.  The procedures for the daily stuff are pretty much transmitted by folklore, and are handled by anybody who's around.  Documentation and training are probably the big improvements to be made here.
+
Each shift has some financial duties which they must handle.  The main daily duties are:
  
−
== Weekly Duties ==
+
* Pick up the bills and mail and put in the office in-box.
−
Every week, somebody Zs out the register, prepares the register report, and deposits the money.  That goes in the Accounting Inbox. The Register Report form, which is attached, is the central document that drives the weekly stuff.  This is the category of work best done by somebody consistently doing a shift. The big challenge of handling the weekly stuff is solving little mysteries such as "Who didn't pay for their special order?" and "Why is the register $132 light?"
+
* Get petty cash for urgent, minor purchases.   
 +
* Close the register at the end of each shift.
  
−
== Monthly Duties ==
+
=== Weekly Duties ===
−
The monthly task involves sitting down for a couple of two-or-three hour sessions, going through the Accounting Inbox and updating the ledger with the transactions.  There are generally only about 10-20 transactions, but some of them, such as the register deposits and vendor orders are pretty complex.  And of course there's always some little mysteries to solve.  After working out all of the mysteries, and reconciling with the bank statement, the final step is to prepare the monthly report and email the mailing list.  For more information, see the [[Monthly Accounting Duties]] wiki page.  We keep the ledger in gnucash.  See google and ask Brian or Steven about that.
+
Every week, the daily closing reports are reconciled and the weekly deposit is prepared.  This incorporates determining how many sales in each category of sales (membership, day use, parts, etc), recording special order payments, recording petty cash spent for Saturday lunch and other items, determining if the register is short and why.  It also involves recording all of this in GnuCash and preparing the deposit slip and taking the money to Chase.  
  
−
== Yearly Duties ==
+
Checks written to pay bills, reimbursement checks, and any other transactions are also recorded in GnuCash on a weekly basis.
−
The big ones here are reporting and paying sales tax, reporting to the IRS, and (if necessary) reporting to the FTB.  These tasks are the usual bureaucratic game of filling out forms, keeping records, etc.  The sales tax return has to be completed by January 31 of each year.  The IRS and FTB stuff is due 4.5 months after the end of our fiscal year, which lands on March 15 of each year.  Another task is to prepare the fiscal year end report.  There is no document on how we do this stuff, but we're constantly massaging the weekly and monthly tasks in an effort to make the yearly tasks as painless as possible.
+
 
 +
=== Monthly Duties ===
 +
Monthly duties include:
 +
 
 +
* [[Financial_Cluster:Reconciling_ledger|Reconciling the ledger]]
 +
* Entering the monthly QBP order in to GnuCash
 +
* Reconciling EventBrite ticket sales with PayPal and entering class sales and EB/PP fees into GnuCash
 +
* Reconciling QBP orders with Special Order payments
 +
* Sales tax is due to the California Franchise Tax Board on a quarterly basis, at the end of the month following the last month of the quarter (EG April 30, July 31, October 31, and January 31)
 +
 
 +
=== Quarterly Duties ===
 +
 
 +
* [[Financial_Cluster:Sales_and_Use_tax|Sales and Use tax]]
 +
 
 +
These are filed with the [https://services.cdtfa.ca.gov California Department of Tax and Fee Administration].
 +
 
 +
=== Yearly Duties ===
 +
 
 +
* File Income Taxes with the IRS before May 15th
 +
 
 +
The big one here is reporting to the IRS.  This is just the usual bureaucratic game of filling out forms, keeping records, etc.  The IRS stuff is due on the 15th day of the 5th month after the end of our fiscal year (December 31 -> May 15 each year).  As a non profit, we do not pay income tax, but are required to file taxes
 +
 
 +
We can file a [[https://www.irs.gov/charities-non-profits/form-990-n-e-postcard-organizations-not-permitted-to-file|990n postcard]] as long as our annual gross receipts (all income including sales, donations, interest, etc.) are less than $50,000.
 +
"Tax-exempt organizations with annual gross receipts that are normally greater than $50,000 must file Form 990 or Form 990-EZ."
 +
 
 +
If our gross receipts continue to exceed $50,000, we can submit a 990-EZ here: https://efile.form990.org/Default.asp.
 +
 
 +
* File Income Taxes with the State of California before May 15th
 +
 
 +
State Taxes are also due May 15th and also have a postcard version for their form called the 199N.
 +
 
 +
* File RRF-1 form with California Attorney General before May 15th
 +
 
 +
This needs to be done yearly as well.  If 990EZ form filed, include with RRF-1 form, otherwise you need to fill out another CA AG form and include it instead.
 +
 
 +
* Fiscal year end annual report. 
 +
The Fiscal year ends December 31st and the annual report should be presented to the board.  The annual report is useful for preparing the taxes and other financial documents. Create a copy of the previous year's annual report, update with the current year's information.  In GnuCash, the Income Statement report (Reports > Income & Expense > Income Statement), and the Balance Sheet report (Reports > Assets & Liabilities > Balance Sheet) are useful.  Upload the report to [[The_Board#Annual Reports]]
 +
 
 +
* Renew Liability Insurance. 
 +
Our landlord requires us to carry insurance and list them as the co-insured.  After renewal, a COI (Certificate of Insurance) should be sent to the landlord for their records. Check the lease for details.  We are currently getting insurance through CJ Abad at Barbary Insurance.
 +
 
 +
* Ensure the following are recorded and safely stored (e.g. saved in the Accounting Dropbox folder):
 +
# Monthly and Year end statements for accounts:
 +
## Checking
 +
## Savings
 +
## Square
 +
## Paypal
 +
## All QBP Orders
 +
# Transactions imported or manually entered in accounting software (e.g. Gnucash) for all accounts, and categorized correctly:
 +
## Checking
 +
## Savings
 +
## Paypal
 +
## Square
 +
 
 +
* Renew Business Registration (Business License) with the city of San Francisco.
 +
As of 2022, our business registration is renewing automatically. The city should send out the new license automatically every May and we need to post it visibly at our shop. Due to the fact that the Bike Kitchen is a 501(c)3, we are exempt from paying registration renewal fees. However, it is imperative that we complete the registration renewal process in order to maintain our business license, which can be required by some of our vendors (QBP, Chris King, etc) and it came come in handy in other situations. When the time comes to renew the business license, the Office of the Treasurer and Tax Collector for the City and County of San Francisco should mail a notice to the Bike Kitchen containing instructions on how to complete the renewal. You will need our [[Non-Profit_and_Tax_ID_info|Business Account Number]], the last four digits of our [[Non-Profit_and_Tax_ID_info|Tax Identification Number]] and an eight character PIN supplied in the registration renewal notice, which, at the time of this writing, could be requested on the [https://www.sftreasurer.org/registrationrenewal SF Treasurer's website].
 +
 
 +
=== Bi-Annual Duties ===
 +
The SI-100 Form needs to be sent in to the California Secretary of State every odd year by December 31st.  Filing is accepted starting 5 months prior to the deadline. https://businessfilings.sos.ca.gov/
 +
 
 +
== Specific Protocols ==
 +
 
 +
=== Receipts ===
 +
 
 +
'''In all cases....'''
 +
* If you can't tell from the receipt, write down what it was for.  Also say what 'department' it's for - shop supplies, fundraising, etc
 +
* If you can't read the dollar amount, write that down too.
 +
 +
'''If you took cash out of the register....'''
 +
* Put the receipt and the change in the register.  If you took out $20, the change + the receipt amount should = $20. 
 +
 +
'''If you need to get reimbursed....'''
 +
* Write your name and that you need to get reimbursed on the receipt.
 +
* Put the receipt in the Accounting In Box folder (the first file in the top left drawer in the office).
 +
 +
'''If you used a BK card....'''
 +
* Write that you used a BK card on the receipt.
 +
* Put the receipt in the Accounting In Box folder.
 +
 
 +
For other financial-related information, see the [[Financial Cluster]] page.
 +
 
 +
=== The Register ===
 +
 
 +
'''Closing the Register'''
 +
 
 +
At the end of each shift, 
 +
 
 +
# Leave $100 in small bills in the register.
 +
# Fill out the register report, noting anything unusual.
 +
# Put it in an envelope with the rest of the cash, any change, and any receipts (if there are any under the change drawer).  Drop it in the safe.
 +
 
 +
=== Gift Cards / Certificates ===
 +
 
 +
See the [[Financial Cluster:Gift Card Protocol|Gift Card Protocol]] page.
 +
 
 +
== Additional Resources ==
 +
Reports:
 +
* [[media:FY_2008_Annual_Report.doc|2008 Annual Report]]
 +
* [[media:FY_2008_numbers.xls|2008 spreadsheet of accounting data]]
 +
* [[media:BK2010AnnualReport.xlsx|2010 Annual Report]]

Latest revision as of 12:52, 19 January 2023

General Financial Responsibilities

All duties are coordinated by the Financial Cluster Coordinator. Ultimately the Board and specifically the Treasurer / CFO are responsible.

Useful Links

Incidental Duties

This is the category that requires the most creativity and responsiveness. The person fulfilling these duties needs ample flexibility to spend BK money and legally sign on behalf of the BK. So this person should be the Treasurer in the corporate sense. The sorts of things that this person does is included in the following list. For more information, see the Financial Cluster Coordinator.

  • Being familiar with how the weekly/monthly/yearly jobs work and ensuring that they get done.
  • Checking the mail at least weekly and paying the bills.
  • Main contact for vendors (i.e., PG&E, Golden Gate Disposal, etc.)
  • Sniffing through the Accounting Inbox weekly and writing any reimbursement checks.
  • Fixing and developing systems like special order protocol, earmarked fund management, cash money allocation, etc.
  • Migrating incidental tasks to the Weekly, Monthly, and Yearly categories as possible.
  • Being responsive on email
  • Managing PayPal and EventBrite ticket money
  • Speak up about spending proposals
  • Having a solid opinion about the BK financial situation, and promoting that opinion in meetings and on the mailing list.

Daily Duties

Each shift has some financial duties which they must handle. The main daily duties are:

  • Pick up the bills and mail and put in the office in-box.
  • Get petty cash for urgent, minor purchases.
  • Close the register at the end of each shift.

Weekly Duties

Every week, the daily closing reports are reconciled and the weekly deposit is prepared. This incorporates determining how many sales in each category of sales (membership, day use, parts, etc), recording special order payments, recording petty cash spent for Saturday lunch and other items, determining if the register is short and why. It also involves recording all of this in GnuCash and preparing the deposit slip and taking the money to Chase.

Checks written to pay bills, reimbursement checks, and any other transactions are also recorded in GnuCash on a weekly basis.

Monthly Duties

Monthly duties include:

  • Reconciling the ledger
  • Entering the monthly QBP order in to GnuCash
  • Reconciling EventBrite ticket sales with PayPal and entering class sales and EB/PP fees into GnuCash
  • Reconciling QBP orders with Special Order payments
  • Sales tax is due to the California Franchise Tax Board on a quarterly basis, at the end of the month following the last month of the quarter (EG April 30, July 31, October 31, and January 31)

Quarterly Duties

These are filed with the California Department of Tax and Fee Administration.

Yearly Duties

  • File Income Taxes with the IRS before May 15th

The big one here is reporting to the IRS. This is just the usual bureaucratic game of filling out forms, keeping records, etc. The IRS stuff is due on the 15th day of the 5th month after the end of our fiscal year (December 31 -> May 15 each year). As a non profit, we do not pay income tax, but are required to file taxes

We can file a [postcard] as long as our annual gross receipts (all income including sales, donations, interest, etc.) are less than $50,000. "Tax-exempt organizations with annual gross receipts that are normally greater than $50,000 must file Form 990 or Form 990-EZ."

If our gross receipts continue to exceed $50,000, we can submit a 990-EZ here: https://efile.form990.org/Default.asp.

  • File Income Taxes with the State of California before May 15th

State Taxes are also due May 15th and also have a postcard version for their form called the 199N.

  • File RRF-1 form with California Attorney General before May 15th

This needs to be done yearly as well. If 990EZ form filed, include with RRF-1 form, otherwise you need to fill out another CA AG form and include it instead.

  • Fiscal year end annual report.

The Fiscal year ends December 31st and the annual report should be presented to the board. The annual report is useful for preparing the taxes and other financial documents. Create a copy of the previous year's annual report, update with the current year's information. In GnuCash, the Income Statement report (Reports > Income & Expense > Income Statement), and the Balance Sheet report (Reports > Assets & Liabilities > Balance Sheet) are useful. Upload the report to The_Board#Annual Reports

  • Renew Liability Insurance.

Our landlord requires us to carry insurance and list them as the co-insured. After renewal, a COI (Certificate of Insurance) should be sent to the landlord for their records. Check the lease for details. We are currently getting insurance through CJ Abad at Barbary Insurance.

  • Ensure the following are recorded and safely stored (e.g. saved in the Accounting Dropbox folder):
  1. Monthly and Year end statements for accounts:
    1. Checking
    2. Savings
    3. Square
    4. Paypal
    5. All QBP Orders
  2. Transactions imported or manually entered in accounting software (e.g. Gnucash) for all accounts, and categorized correctly:
    1. Checking
    2. Savings
    3. Paypal
    4. Square
  • Renew Business Registration (Business License) with the city of San Francisco.

As of 2022, our business registration is renewing automatically. The city should send out the new license automatically every May and we need to post it visibly at our shop. Due to the fact that the Bike Kitchen is a 501(c)3, we are exempt from paying registration renewal fees. However, it is imperative that we complete the registration renewal process in order to maintain our business license, which can be required by some of our vendors (QBP, Chris King, etc) and it came come in handy in other situations. When the time comes to renew the business license, the Office of the Treasurer and Tax Collector for the City and County of San Francisco should mail a notice to the Bike Kitchen containing instructions on how to complete the renewal. You will need our Business Account Number, the last four digits of our Tax Identification Number and an eight character PIN supplied in the registration renewal notice, which, at the time of this writing, could be requested on the SF Treasurer's website.

Bi-Annual Duties

The SI-100 Form needs to be sent in to the California Secretary of State every odd year by December 31st. Filing is accepted starting 5 months prior to the deadline. https://businessfilings.sos.ca.gov/

Specific Protocols

Receipts

In all cases....

  • If you can't tell from the receipt, write down what it was for. Also say what 'department' it's for - shop supplies, fundraising, etc
  • If you can't read the dollar amount, write that down too.

If you took cash out of the register....

  • Put the receipt and the change in the register. If you took out $20, the change + the receipt amount should = $20.

If you need to get reimbursed....

  • Write your name and that you need to get reimbursed on the receipt.
  • Put the receipt in the Accounting In Box folder (the first file in the top left drawer in the office).

If you used a BK card....

  • Write that you used a BK card on the receipt.
  • Put the receipt in the Accounting In Box folder.

For other financial-related information, see the Financial Cluster page.

The Register

Closing the Register

At the end of each shift,

  1. Leave $100 in small bills in the register.
  2. Fill out the register report, noting anything unusual.
  3. Put it in an envelope with the rest of the cash, any change, and any receipts (if there are any under the change drawer). Drop it in the safe.

Gift Cards / Certificates

See the Gift Card Protocol page.

Additional Resources

Reports:

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