Maintaining a check register is not a reliable church bookkeeping system.
We are aware. You didn't go into ministry to become an accountant. You were called to be a leader in your church and make disciples.
The IRS can impose severe penalties on churches for failing to classify and pay a worker with a 1099...which the IRS considers an employee.
We offer our clients an in depth knowledge of the unique challenges facing religious organizations today. We spend many hours every year continuing to stay abreast of the new regulations and current tax laws that will affect our non-profit clients including churches, synagogues, mosques, church schools, church daycares and other religious-based organizations.
FT Walton Church Bookkeeping LLC is a worthy choice for churches with lots of staff and volunteers. One of its primary benefits is the ability to have lots of users in different roles. If your church doesn’t have a dedicated administrator or accountant, FT Walton Church Bookkeeping LLC allows you to let everyone on your staff play a unique role in tracking your organization’s finances and budgets.
Create a church bookkeeping program that not only tracks expenses or income but also tracks assets and liabilities.
For a church to be financially healthy, accuracy and expertise are essential. A qualified and trained bookkeeper is an expert who understands the best way to enter, complies with federal and local requirements, and makes sure your reporting is accurate.
Here is a quick breakdown of some of the most common tasks you will need to accomplish when doing your church bookkeeping.
Enter Income And Expenses. ...
Track Contributions And Prepare Bank Deposits. ...
Pay Bills. ...
Journal Entries. ...
Complete A Bank Reconciliation.
The IRS may begin a church tax inquiry only if an appropriate high-level Treasury official reasonably believes, based on a written statement of the facts and circumstances, that the organization: (a) may not qualify for the exemption; or (b) may not be paying tax on unrelated business or other taxable activity.
The biblical pattern shows without question that the pastor should be involved in the oversight of the church's finances, however, Scripture also prescribes the attitude and actions of the pastor to avoid disqualification of influence and trust.
Churches call the traditional balance sheet a statement of financial position. It uses the accounting equation “Assets = Liabilities + Equity” to show a snapshot of your organization's financial health. It also shows the current balance of each of your funds if you've been implementing fund accounting for your church.