Auditing my accounts

Last October I had to set up a Qualified Income Trust (QIT) because I'm on Medicaid, live in a nursing home, and have an income over a certain amount. In order to maintain eligibility certain funds have to pass through the QIT to pay healthcare and other bills. Ohio's 2016 expansion of Medicaid through the Affordable Care Act required this. With the new guidelines Medicaid is less restrictive to those with higher incomes. We also are no longer required to spend down in order to be income eligible for Medicaid.

Last fall, I wondered how much the QIT would change my bookkeeping system. I have been doing some freelance writing since 2009 and I have had to make special arrangements for setting aside, and paying, my self-employment taxes. I also keep track of spending and have those records available for Ohio's Job and Family services, if necessary.

Setting up the QIT was similar to my former bookkeeping system. But, the differences can be confusing. At first, I was very careful, and the money seemed to remain in the QIT, as it was supposed to. But then when I started moving larger amounts of money at different times of the month, I noticed it was difficult to keep up with when money was credited or debited from the QIT..

Then, I decided group similar funds together to cut down on transactions. My bank does not charge me a transaction fee for transfers between my QIT and regular checking accounts. In order not to have too many transactions, and to simplify (I thought), I lumped similar funds together. But, it is more difficult to track the funds that way.

It seemed to me that the account was short on funds. Yet, it appeared all deposits went in. Then I thought credits weren't going in until a later date. So, I started paying bills each month after the 20th, which allows deposits time to be posted.

I also have been auditing the QIT and my personal checking account over the last few months. I want to ensure there are no errors. But, I don't want to be required to put excess funds in the QIT, to assure there are adequate funds in it. I want to just use it has a pass-through four funds due to be paid.

Today, I discovered that I'm going to break my payables into increments that match the bills I pay. That will make it easier to track them.

I only have a couple more hours of auditing to do before I'll know if there are any errors. But it will take more time than I thought.

I realize now that shortcuts do not always make things shorter – in the end.