Avoiding this error in church bookkeeping is by taking the time to look at every person you pay for a service. You can then use the IRS guidelines (link below) to determine if they should classify themselves as employees with payroll tax withholding, matching or independent contractors.
It will make it easier to assure your congregation that their tithes, donations, and taxes are being used correctly. Congregants who know their donations will be used wisely are more likely than not to donate again.
The Pastor may not consider hiring an "experienced" bookkeeper as a top priority. The Pastor may do the bookkeeping himself or hire a "financial" or organizational member to handle it and turn it over.
Security Procedures As the Bookkeeper,I do enter the accounting data, write the checks, and reconcile the monthly bank statements for a church thrift store that is a start-up. �
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.
A key area that churches are at greatest risk is internal controls. It is important that someone outside your financial system reconciles your bank accounts, tracks and verifies your deposits and checks, which increases your congregation�s security.
Your church is a vital part of the mission. It's important that your bookkeeping doesn't get in your way. The best church accounting software can help you quickly and accurately do your church bookkeeping so that your administrative staff can concentrate on what is most important for your ministry.
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.
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.
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.