2020-10-26 Hypha Worker Co-op: Setting Up Financial Books

Location: https://link.hypha.coop/calls
Attending: bl, hema, rodica

Agenda

OC is a liability account
- when amounts reach about 10k we should set up a separate bank (savings) account bc we are holding money that don’t belong to us
- for now, we can manage this through QB accounts
In QB, no class, no subaccount
- Credit and debit a OC account under Chart of Accounts as transactions come in
Use memo line to indicate “for who”
Are vendors “Hypha vendors” or not?
- when a vendor invoices an OC Collective, are they a Hypha vendor in QB?
  - for now, no, try this for a quarter
  - this means we don’t keep OC invoices in QB
  - finances don’t get mixed into our accounts payable
  - invoices are not “Hypha vendors”, but those of the Collectives

grant vs. retainer?
- retainer is not income (unearned money), but a grant is (earned money) even if work has not been carried out
can use Class to show in income statement, but we decided to use Projects
how much of wages went to grant?
- change payroll to per person per project (in Wagepoint syncs)
when to use Class vs. Projects?
- Class
  - for internal projects, year-over-year ledgers
  - more versatile, multiple income sources
  - line-item level association
- Projects
  - durational one-off projects, tied to single client
  - tied to single client per project
  - per-invoice level association

technical term is internally restricted account
allocation by board decision
ben to create reserve account as subaccount of Chequing under Chart of Accounts
report expenses into a “Reserve Funds” class, so it shows up in P/L

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