The Powell River Money Society is a member of the Powell River Chamber of Commerce
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The Chamber accepts PR$ at their regular lunch meetings.

Accounting and Bookkeeping with PR$

While the information in this article is true to the best of our knowledge, you should always consult your accountant and/or bookkeeper to make sure that it is correct and applies to your organisation.

Adding Accounts to your GL

To handle PR$ in your accounting system, you’ll need to add at least one account, probably two, with maybe another for non-profits. While this information assumes that you are using some kind of accounting software with a General Ledger, it also applies if you are doing your accounts in a spreadsheet (where an account corresponds to a spreadsheet column) or a manual ledger.

First, you’ll need a GL account to track your online PR$ account. This should be the same type of account as you use for your regular Canadian bank account. You can view your online PR$ account easily and update your bookkeeping account to match, just the same as you would a bank account.

Second, if you use PR$ as cash, you’ll need to account for it the same way you do CN$ cash. That may mean adding a PR$ petty cash GL account. It may also mean adding an account to handle PR$ in the till, if you do so for CN$ in the till. 

Non-profits may want to make a special effort to handle what happens when someone buys PR$ from them at a cash point. In this case, the PR$ are removed from their online account immediately, but the CN$ wait at the cash point for pickup. There may be a time delay before that CN$ cash is picked up from the cash point and arrives in the petty cash box or is deposited in a CN$ bank account. One way to handle that is to add a GL account for “pending PR$ trades”: the trade amount is debited from the PR$ online account and credited to the Pending Trades account immediately, then when the CN$ cash is picked up, the Pending Trades account is debited and the petty cash or bank account is credited.

Printing a PR$ Online Account Statement

There is no automatic monthly statement issued, but it’s very easy to create and print one yourself.

  1. Log in to your PR$ online account at http://powellrivermoney.ca/cyclos-access/
  2. Click on the “Account(s)” icon
  3. Click on the “Advanced” button at the top of the account listing
  4. Enter the beginning and end dates for the period you want to see in the From Date and To Date boxes
  5. Click on Search

You’ll see all the transactions that occurred during the date range you entered. At the top right of the listing there are icons for Download (a floppy disc), Print (a printer) and Help (?).

The Print icon will show you a formatted page with all your transactions, which you can then print. The Download icon allows you to download a CSV file of the transactions which you can import into a spreadsheet. (You might also be able to import the file into accounting software with some tweaking and massaging.)

General Accounting Info

PR$ are treated just like CN$ from the point of view of tax liability. If you manage your use of PR$ just as you use CN$ then you will have no problems with the tax authorities.  See Canada Revenue Agency – IT490 for more detail.

Draw by owners – Whatever procedures you follow to draw CN$ cash from the till or petty cash apply exactly to PR$.

Payments to staff – It is neither legal nor useful to offer staff payment in PR$ rather than in legal tender. It is legal to pay bonuses in PR$ – but this MUST be by staff consent. Note that such payments increase the tax liabilities of staff, and so should always be provided with enough CN$ to meet the tax and other deductions incurred.

The issuance of PR$ results in having your online trading account in the negative. While your account is negative – in “commitment” – you are obliged to honour PR$ presented by customers, in accordance with the terms of acceptance you have offered.