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How To Reconcile a Bank Statement:

Instructions

How To Read the Harry-Anna Trust Fund Report

Instructions

How To Read An Income Statement

Instructions Coming Soon!

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A

accrual basis accounting - A method of accounting where income is recognized when earned, even if not yet received, and expenses are recognized when incurred, even if not yet paid. This method should be implemented by every lodge. 

APR - Annual Percentage Rate — How lenders state the interest rate on a loan. The lower the APR, the lower the amount of interest you'll pay.

APY - Annual Percentage Yield — How credit unions and banks tell you how much money you'll earn on your savings if you leave a lump sum in your account for one full year. Use it to compare what institution gives you the best return on your money.

assets - The items on a balance sheet showing the book value of property owned. 

audit - A review of the operating, administrative, and financial activities of an organization for conformance with all legal and administrative requirements and conformance with the principles of economy and efficiency.

auditing and accouning committee  -  a group of members elected to periodically review the Monthly Financial Report of their lodge and make appropriate recommendations. Please see the Auditing & Accounting Manual for more information.

B

balance - The amount of money you have in a checking or savings account. With a checking account, it is important to figure out (or "balance") exactly how much money you have by comparing your check register to your statement.

balance sheet - A balance sheet is a statement of the book value of a business or other organization or person at a particular date, usually at the end of its "fiscal year," as distinct from an income statement, also known as a statement of profit and loss (P&L), which records revenue and expenses over a specified period of time. A balance sheet is often described as a "snapshot" of the company's financial condition on a given date. Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time, instead of a period of time. The balance sheet has two parts: assets on the left-hand ("debit") side or at the top and liabilities on the right-hand ("credit") side or at the bottom.

baseline budgeting - A method of budgeting that starts with the status quo and then adds to it or subtracts from it based on proposed changes.

bonds - This is a type of investment that represents corporate or government debt. In essence, a bond is a loan from the purchaser to the company or government agency that issued it. Bonds are not federally insured, though bonds issued by the U.S. Government are considered free of repayment risk. 

budget - A budget is a statement of the financial position of the Lodge for a definite period of time (fiscal year) based on estimates of expenditures during the period and proposals for financing them. It also is a plan for the coordination of resources and expenditures and reflects the values and goals of the organization.

budget cycle - The period of time that a budget covers, usually not less than two years and not more than four.

budget principles - A set of statements to provide context for budgeting that communicates the organization's values and priorities.

C

calendar year - An accounting and tax period of one year that ends on December 31. The fiscal year begins April 1 through March 31.

cash basis accounting - A method of accounting where income is recognized when received and expenses are recognized when paid.

certificate - An account where you deposit money for a specific amount of time. The amount that you earn on a certificate is greater than what you earn in other types of saving accounts, but there is a penalty or fee for taking your money out early.

certified audit statement - A statement of assets and liabilities (Balance Sheet) and a statement of receipts and disbursements (Income and Expense Statement) audited by a Certified Public Accountant (CPA).

chart of accounts - These are the names you establish for the different categories of assets, liabilities, income and expenses that you want to group transactions. A chart of accounts may include the following: rent, utilities, telephone, cash, dues income, and accounts payable.

compensation - Wages, bonuses, overtime and certain expense allowances deemed taxable by the Internal Revenue Service.

corporate credit card - This is a card issued by the credit card company in the name of the individual lodge officer or employee and on which the lodge has guaranteed payment.

CPA (Certified Public Accountant) - accounting professional who has passed the Uniform CPA Examination, which was developed and is maintained by the American Institute of Certified Public Accountants (AICPA), and has subsequently met additional state requirements for licensure as a CPA. Only CPAs are professionally licensed to provide to the public, attestation (including auditing) opinions on publicly disseminated financial statements.

D

deficit - An amount by which expenditures exceed income.

defined benefit - Refers to a pension plan where the benefits are formula based rather than related to the contribution rate paid.

Department of Labor (DOL) - The United States Department of Labor administers a variety of Federal labor laws including those that guarantee workers’ rights to safe and healthful working conditions; a minimum hourly wage and overtime pay; freedom from employment discrimination; unemployment insurance.

division method - A method of calculating per capita tax where the amount of money received is divided by the dues rate to determine the number of payments received.

documentation - This refers to the lodge's records that must be kept with respect to every lodge expenditure showing that the expenditure was made, that it was properly authorized, and that it was spent for a proper lodge purpose.

double-entry book-keeping - is the standard accounting practice for recording financial transactions. The system is based on the concept that a business or organization can be described by a number of different variables or accounts, each describing an aspect of the business in monetary terms. Every transaction has a 'dual effect'. For instance: in buying an asset - 1) the amount of fixed assets in the business or organization increases and 2) the amount of cash is reduced.

dues posting - Refers to the practice of recording dues payments by member in order to verify good standing.

E

Employer Identification Number (EIN) - A nine-digit identification number obtained from the Internal Revenue Service. And EIN is required in order to apply for tax-exampt status. An EIN is obtained by filing IRS Form SS-4.

exempt function expenditures - This term relates to the purpose for which the nonprofit organization was formed and are permissible expenditures.

expense voucher - This is a form which the lodge uses to authorize the expenditure of funds for a specific purpose. It sets forth the nature of expenditure and the amount of the expenditure and is signed by the person or persons who are required to authorize the expenditure under the lodges' Bylaws.

expenses directly billed - This term refers to expenses that are incurred by officers or members in conducting business and which are billed directly to the lodge. For example, charges on a lodge credit card or a restaurant tab in the name of the lodge would be considered a directly billed expense.

F

fidelity bond - Protects against loss of funds in the event of theft by officers and staff of a lodge. Lodges that represent members in the private sector are required by Department of Labor regulations to obtain bonding coverage in an amount equal to ten (10) percent of the liquid assets plus one year's gross receipts.

financial management  - Financial Management is planning, organizing, directing and controlling the financial activities, such as procurement and utilization of funds of the lodge. It means applying general management principles to financial resources of the lodge.

financial reporting system (FRS) - The Elks Financial Reporting System (FRS) is designed to both enhance and simplify local lodge financial reporting, and will replace the Annual Financial Report for all participating lodges. The new system will not replace 990 or 990T submissions to the IRS, nor will it replace an audit or review if required by your state based on other factors or circumstances.

fiscal transparency - Fiscal transparency is defined as the public disclosure of all relevant fiscal information on a systematic and timely basis. Lodges can ensure such transparency in numerous ways, including: regular financial reports to the membership; access to financial records; open discussion and debate on decisions involving the use of lodge funds, among others.

fiscal year (FY) - An accounting and tax period of one year that may end on the last day of any month (e.g. March 31, April 30).

G

group tax-exemption number - In order to avoid individual filings for tax exemption status, some organizations file for recognition for a group.

I

income and expense statement - A financial statement whose purpose is to show the results of an organization's operations, i.e., whether or not the business or organization has earned a profit for a specific period of time. The statement of income lists the various revenue and expenses of the business along with related net income.

Internal Revenue Code - This is the law that imposes federal taxes on individuals, corporations and organizations. 

invoice - An invoice is a written record of a transaction, often submitted to a customer or client when requesting payment. Invoices are sometimes called bills or statements.

IRS - The United States Internal Revenue Service. Lodges have to file with the IRS to obtain an Employer Identification Number (EIN) and for tax exempt status.

IRS Form 8718 - An Internal Revenue Service user fee form filed with the application for determination as a tax exempt organization.

IRS Form SS-4 - This is an Internal Revenue Service form that is an application for an Employer Identification Number (EIN).

L

liabilities - The items on a balance sheet showing debts or pecuniary obligations.

licensed tax professional  - Any tax professional with an IRS Preparer Tax Identification Number (PTIN) is authorized to prepare federal tax returns. 

ledger - A ledger is a physical collection of related financial information, such as revenues, expenditures, accounts receivable, and accounts payable. Ledgers used to be kept in books preprinted with lined ledger paper -- which explains why a business's financial info is often referred to as the "books" -- but are now commonly kept in computer files that can be printed out.

lodge funds - lodge funds are funds derived from Dining Room, Bar and other services. 

M

modified cash basis accounting - A method of accounting that incorporates some aspects of Cash Basis accounting and some aspects of Accrual Basis accounting.

multiplier - Refers to a factor by which the number of payments is multiplied in order to determine the number of full dues equivalents.

mutual fund - A mutual fund is a type of investment where a group of investors collectively own shares of stocks or bonds. You buy shares of a mutual fund as you would stock. Mutual funds are not federally insured.

N

National Change of Address Service (NCOA) - A service provided by the Post Office to identify bad addresses and provide you with new ones.

negative or reverse check-off - A negative or reverse check-off is a check-off system or payroll deduction which is mandatory for the employees but where the employee may request a refund of the amounts checked-off. It is sometimes used as a means of raising political money. Receipts from a negative check-off for political funds do not qualify as voluntary political funds.

non-exempt function expenditures - This is a term used by the federal Internal Revenue Code for expenditures by a nonprofit organization for non-political activities.  Non-Exempt expenditures include normal expenses for representing or organizing members, as well as expenditures for legislative activities, lobbying, and ballot initiatives.

O

P

payroll 940 - IRS form 940 is an annual form that needs to be filed by any business that has employees. This form reports the business’s federal unemployment taxes pursuant to the Federal Unemployment Tax Act (FUTA).  The business is responsible for the tax and does not come from employee wages.  This tax along with state unemployment programs pay for unemployment compensation to those worker who have lost their jobs.

payroll 941 -  IRS form 941 is the Employer’s Quarterly Federal Tax Returns.  All employers are required to withhold federal taxes from their employees compensation, which includes, Federal Income tax, Social Security tax and Medicare tax.   The IRS form 941 is the form used for reporting and paying these taxes to the United States Government.

per capita tax - A per-member charge required to be paid to Grand Lodge and the State Association based on membership as of April 1^st of each year. A pro-rated rate will be due on new members joining after April 1^st.

petty cash - A petty cash fund is defined as a small working cash fund maintained by an organization for use in purchasing incidental supplies of an unpredictable nature. Establishment of petty cash funds is not encouraged and approved only when it is deemed essential for daily operations of the lodge. The lodge's Bylaws usually will define and limit the cash amount available in a petty cash fund. Expenditures beyond such amount would be subject to the internal approval processes outlined in the Bylaws.

profit and loss statement - A profit and loss statement, also known as an income statement, is a financial report that displays your total income, total costs (what you pay to produce or perform), total expenses (what you pay in overhead), and net income for any given time period.

R

receipt - This refers to the documentation for a lodge expenditure produced by an outside vendor showing that a certain amount was spent by the lodge for a particular item or service.

reconciliation -When you "reconcile" or "balance" your checking account, you are using your monthly statement to determine the exact amount you have available in your account. It's important to do this each month to prevent overdrafts (and any resulting fees).

reimbursed expenses - This refers to expenses incurred by a lodge employee or officer in conducting business and for which he or she is authorized to receive reimbursement from the lodge.

Request for Proposal (RFP) - An RFP is a document that describes products or services in sufficient detail to solicit competitive bids.

RT-6 Form - This is the Employer's Quarterly Report.  The RT-6 Form is mailed each quarter to employers who are not required to file electronically. Employers who voluntarily file electronically for at least two consecutive quarters will not receive a paper Form RT-6.

S

sales tax - When a Lodge collects state or local sales tax on sales of food, beverages, etc., normally it is acting as trustee for the applicable taxing authority. The money collected is not “income” but is merely held in trust for later payment to the tax authorities. Click here for the sales tax calculator.

spreadsheet - A computer program such as Microsoft Excel that performs mathematical and financial functions.

standardization - standardization refers to a level of uniformity and consistency in accounting operations. 

statement - This is a paper record of your account transactions over a set period of time. Your statement is an essential tool in reconciling your account balances.

stock - Stock is a type of investment. A share of stock represents a share of ownership in a company. You can make money on stock in two ways — dividends and increases in the price. Stock dividends represent the method companies may use to distribute earnings to their owners (the shareholders). Stocks that don't pay dividends are often called growth stocks — earnings come solely from price growth. Most Internet technology company stock is considered growth stock.

surplus - An amount by which income exceeds expenditures.

T

treasurer's check - Also can be called Bank Checks or Cashier's Checks. The difference between a Treasurer's Check and a regular check is that a Treasurer's Check is a guaranteed check.

treasurer's report - The treasurer's report is the Monthly Financial Report prepared by the Treasurer. 

W

W-2 - An annual IRS form that is used to report taxable wages and withholding taxes to an employee.

Y

year to date - YTD often appears on financial statements indicating income and expenses for a certain point in the year in a budget cycle. It is a very useful tool to measure actual numbers against those projected.

The FSEA has put together a Manual of Statutes & Responsibilities for Lodge Treasurers. It includes detailed information pertaining to the Treasurer's responsbilities, statutues, and applicable laws.

Download the Statutes & Responsibilities Manual for Treasurers

Budgeting

The Business Practices Committee created a guide that encompasses all you need for preparing and operating within a budget, as well as QuickBooks* budgeting information:

Download the Ultimate Budgeting Guide

Click Here For a Budget Template**

**Account numbers are subject to change, please check the Uniform Chart of Accounts for updated information. 

Click Here For a Voucher Example

Click Here For Reporting on a Special Event - Template

 

*QuickBooks is the preferred accounting system by the Grand Lodge. 

QuickBooks

Exporting Mapping File From QuickBooks - Watch Video

Exporting GL Activity From QuickBooks - Watch Video

Sales Tax Calculator

Disclaimer

The Florida State Elks Association and its affiliates do not provide tax, legal or accounting advice.

The material herein has been prepared for informational purposes only, and it is not intended to provide, and should not be relied on for tax, legal or accounting advice.

You should always consult your Lodge’s tax, legal and accounting advisors before engaging in any endeavors or transactions.