Also, you need to be capable of looking at the bank balance to see at a glance what percentage is designated funds or restricted funds. You will also need to know how much money is remaining to keep the lights on.
Your church will be able manage the accounting tasks that are associated with programs such as preschools and fundraising. This will ensure these programs and your ministry are a success.
As your church grows, you may find that you require more functionality than QuickBooks Premier Plus. You will need to manage volunteers, organize events, facilitate online giving, and perhaps even run email campaign campaigns for your church.
If you're unsure whether to label a worker an employee or an independent contractor, then go ahead and assign and pay your worker an employee classification!
Sometimes congregations get stuck with bookkeeping questions or even need to outsource their bookkeeping. Discover how FT Walton Church Bookkeeping LLC we can help you save time and money with our bookkeeping services designed for churches.
Churches could face serious penalties if they pay workers with 1099s that the IRS determines should be classified as employees.
Laying all that aside....another important reason for keeping books...is to make good financial decisions. You need to be able to pull up a report and see that you are spending more on expenses than you were in prior years.
Working in church accounting, you share the same responsibilities as an accountant in any other organization. You record expenses, track contributions made by the congregation, and monitor spending on various programs. Your duties center around bookkeeping, documenting and controlling finances for a church.
Diocesan Canons state that treasurers and other officers of a church parish, mission or other institution be “bonded” according to Episcopal Church Canons. Episcopal Church Canons require that treasurers be “adequately bonded.”
seven years
Financial Records are traditionally kept for seven years. This relates to the laws of tax audits and the number of years back the IRS is allowed to look when determining an organization's tax liability.