Good financial health is dependent on accuracy and experience. A trained and qualified bookkeeper ensures that you have an expert who can make accurate entries, understand and comply with all local and federal regulations, and is able to report accurately.
Congregants will feel more secure knowing that their donations and tithes are being used in the right way. Congregants will be more inclined to give if they know that their donations have been used well.
Still, every church has to deal with finances. There are tithes and offerings coming in weekly. Meanwhile, there are bills to pay, needs to meet, and (often) salaries to be paid. It’s a lot to keep track of. Accounting church software programs can help you navigate this terrain, even if you’re not a whiz in Excel and don’t know a debit from a credit.
There are ways to avoid making mistakes in church bookkeeping.
A bookkeeper who is "experienced" is not something that they need to do is not high on their priority list. So, the Pastor either handles the bookkeeping by himself or finds a member with organizational or financial skills that they can then turn over to the pastor.
Sometimes, congregations need to outsource bookkeeping or get stuck in bookkeeping questions. FT Walton Church Bookkeeping LLC can help you save money and time with our bookkeeping services for churches.
You will discover errors like duplicates or missing transactions, bank errors on rare occasions and amount discrepancies by reconciling your accounts with your bank, credit card, and bank statements.
All organizations should follow generally accepted accounting principles (GAAP), using an accrual basis to record income and expenses when they are earned and incurred. However, many churches use a cash basis—recording income and expenses when they are received and paid—or a combination of both approaches.
How To Manage Church Records
Identify The Church Records That You're Going To Manage. Based on your local state laws you will need to figure out what records are imperative to keep. ...
Implement A Retention Schedule. ...
Establish Retention And Destruction Policies.
In a non-profit organization, such as a church, the board is the bearer of this fiduciary responsibility and therefore should properly oversee all operations, including finances, to protect the members of the church.
Common Church Budget Categories
Personnel (salaries, benefits, etc.)
Administration (operating expenses)
Facilities and Equipment (utilities, insurance on property, maintenance)
Outreach (missions, evangelism, social events, etc.)