Tracking Mortgage Payments and Balance

This guide will walk you through how to set up and record mortgage payments in ChurchTrac.

What You Need To Know

In ChurchTrac, an "Untracked Account" is recommended to track what your church owes on a long-term loan, like a Mortgage. An Untracked Account allows you to "track" a balance, but the entries on that Account do not appear on your Balance Sheet or your Budget. In addition, it is ideal for tracking the value of fixed assets (pews, building, sound equipment, etc.).

Step-by-Step Instructions

Follow the steps below to add your Mortgage and begin tracking payments in ChurchTrac.

Step 1. Add Your Mortgage Account

Go to Accounting -> Accounts and select the "Add Bank Account" button.

The panel will prompt you with a question of whether this is a financial account that holds a balance you want to track. Select "Yes," since this is a Mortgage Account.

Type a "Descriptive Name" for the Account, like "Mortgage Account," and from the list of Account Types, select "Untracked."

Choose "Untracked Liability" for mortgages (or money you owe). Choose "Untracked Assets" for Fixed Assets that have a value (vehicles, property, etc.) Then, enter the Start Date and the balance of your mortgage as of that date. We recommend that you use a statement that's dated when you want to begin tracking this balance in ChurchTrac.

Then, select "Save" to save the Account on your Accounts page.

Step 2. Create Categories for your Mortgage Payments

Go to Accounting -> Categories, and create categories for "Mortgage Principal" and "Mortgage Interest" if you do not have them already. These categories will be used when you record your Mortgage payments.

Next, return to Accounting -> Accounts and select the "pencil icon" next to your Mortgage Account, to edit the Account.

In the "Auto Adjustment Category" dropdown, select your "Mortgage Principal" Category created in the previous step. When you use this Category in your Checking (or any other Bank Account), the corresponding Mortgage Account will update automatically, reducing its Principal balance accordingly.

Step 3. Record Your Mortgage Payment

Go to Accounting -> Accounts and select your main Checking Account. Then, choose "Add Transaction."

Enter "Mortgage Payment" as the payee or description (1). Then, choose your "Mortgage Principle" Category and enter the amount (2). Followed by your "Mortgage Interest" Category and the amount (3). Enter any other line items that apply to your payment. Then, "Save" the transaction (4).

ChurchTrac will automatically update the Mortgage Principal in your Untracked Account (no extra entries needed).

If you enter this incorrectly, editing it later will not sync to the Untracked Account. You’ll need to manually fix it there. This transaction is only sent once when it’s first created.

FAQs

Here are some frequently asked questions about tracking Mortgages in ChurchTrac...

What should I enter for the Beginning Balance?

Use the ending balance from your bank statement for the month prior to starting ChurchTrac Accounting. The Beginning Balance date should match that statement’s ending date. This ensures reports reflect your financials accurately.

How do I fix an incorrect Beginning Balance?

The Beginning Balance transaction is the only reconciled transaction that can be edited. Update it directly to correct your starting balance.

When should I use a Balance Adjustment?

Balance Adjustments are only for Untracked Accounts and are used to adjust the internal balance of a Liability or the value of an Asset. They do not affect your Balance Sheet or Budget.

Why can’t I choose a Category or Fund for a Balance Adjustment?

This transaction type is solely for internal tracking of balances or Asset values in Untracked Accounts. It is not tied to Income, Expenses, or Funds.

How do automatic adjustments work for Untracked Accounts?

When you assign an Auto-Adjustment Category to an Untracked Account, ChurchTrac automatically creates a Balance Adjustment transaction whenever you record a payment from another Bank Account. This keeps the account balance accurate without extra manual entries.