Bank Deposits

Tracking Donor Details in Xero

While many churches maintain a separate Donor Database, smaller churches sometimes need to keep track of the donors details in Xero. Yes, you can do that! This means that you will have to record each donor’s weekly donations as a unique transaction into a “holding bucket” and then transfer the total in the holding bucket as one deposit to your bank account. It’s not hard.

Start at your Dashboard by clicking on your Quick Transaction Menu, the “+” sign and scrolling down to Receive Money.

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Next, you will have the opportunity to choose which bank account to use. In this case, we are going to choose our “holding bucket” which is faux bank account called “Undeposited Funds”. If you need to set up this faux bank account on your chart of accounts, click here.

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Select the UNDEPOSITED FUNDS account and click Next.

You will now have the opportunity to enter all of the checks and cash donations received from your Sunday offering. You will need to transact one of these receipts or “New Receive Money” transactions for each donor.

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  1. 1. Enter the Donor Name. You should have your donor’s set up already. See our “Contact” video or you can add a new donor right here.
    2. Enter the check number or note “cash”.
    3. Choose the Item or Category they wish to donate to (i.e. General Tithes, Missions, Youth, etc.) Click here for information on creating items.
    4. Enter the amount
    5. Click Save & Add Another if you have more donations to record.

Most churches also receive some miscellaneous cash donations. Set up a generic donor called “Cash Donations”

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Select your “Cash Donations” payee and note “cash” in the reference. These funds are normally credited to the General Tithes & Offerings income account. Enter the amount and click SAVE.

You have completed all of the donation transactions that need to be recorded to keep donor detail data for your Sunday offering. Now you want to take all those funds that you have recorded in your “holding bucket” or Undeposited Funds account and create one deposit slip and transfer that total amount to your real bank account in Xero.

When you clicked SAVE, you went to the bank register for your Undeposited Funds Account.

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    You can see in this Undeposited Funds account:
    1. The individual transactions you recorded and the TOTAL of those transactions under Balance.
    2. Click on MANAGE ACCOUNT.
    3. Click on TRANSFER MONEY.
    Your Transfer Money screen will appear.

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Complete this template by entering:
1. From the dropdown menu, the true bank account where you are depositing the funds.
2. The date of the deposit
3. The amount to be deposited
4. Reference the Sunday Offering Date
5. Click TRANSFER
This will take you to the bank register for your true checking account.

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You can see the account name, ABC Checking. The date and amount transferred to this account.

It’s always a good idea here to click on the dropdown menu at the account name and choose the UNDEPOSITED ACCOUNT and review that register after the transfer to ensure the balance is $0. You want to clear your Undeposited Account each week as you make that transfer to your real bank account.

You’re done! If you go now to CONTACTS and choose one of your member’s names that made a donation this week, you will see the amount they donated recorded in their contact account! You will have a record for the year of all of their transactions.


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