Funds are used like "buckets" to track how your assets and liabilities are allocated. When used correctly, you are able to easily see how much you have in each bucket. This allows you to know how much you have allotted to your Building fund, Youth fund, or New Carpet fund, even if all this money is deposited into and spent out of the same bank account. The General Fund is used for general, undesignated deposits and expenses. For most churches, this is the main operational fund. In ChurchTrac Online, the General fund can be renamed, but it cannot be deleted.
Let's say that you need a Building fund in addition to the General fund. As contributions are made, some amounts are allocated for the general use (tithes, offerings, etc.), and some are designated specifically for your building program. Even though all the money is deposited into the same checking account, by designating a fund you can easily track how much money has been designated for a specific purpose. To create a fund, click on "Funds" under the Config option on the Accounting toolbar. Type in the name of your new fund in the "Create New Fund" field, the fund name will appear in the list on the left side of the screen and the information about the fund will appear on the right side of the screen.
The current fund balance is calculated based on the deposits and expenses attributed to that fund on the Account Register screens. The fund balance cannot be entered or changed on Fund screen. Once you have created your funds, you can click on the fund name in the list to view the fund balance, make changes to the fund name or delete the fund.