Does ExpensePlus support deferred income?
This article is for churches and charities that account on an accruals basis.
Yes, ExpensePlus will allow you to account for deferred income in the Adjustments Module.
You can view deferred income via the Creditors and Debtors report through the Finance Reports screen. The total of any income which is deferred will show on your Balance Sheet, under Current Liabilities, Deferred income.
You only need to record deferred income transactions at year-end for income transactions you want to defer into the next financial year. For example, if you have received deposits in advance for a ticketed Weekend Away happening in the next financial year.
Top Tip: You should consult your Independent Examiner or Auditor around which income is appropriate to accrue - they will advise you on the Income Recognition Principle.
How to record deferred income
Click on Deferred Income (money we received in advance) in the Creditors & Debtors table at the top of the Adjustments Screen.
Using the 'Add Manual Deferred Income Adjustment' button, record the details of the income to be deferred.
The deferral will then appear in the deferred income table on the Adjustments screen.
You can reverse it out when the income needs to be accounted for in a subsequent financial year, using the reverse button to the right-hand side of the table.
To help you better understand the Adjustments module as a whole, please visit the module overview page here.