However, every church must manage its finances. Every week there are tithes to be paid and offerings to be made. There are bills that need to be paid, income to meet, as well as salaries to be earned. It's all a lot of work to keep track. Accounting software for churches can help you navigate these waters, even if Excel is not your forte and you don’t know the difference between a debit or a credit.
In order to be able to manage the finances of a church, the bookkeeper may also need to act as an accountant or treasurer. They are responsible for all financial aspects of the church. These are their responsibilities, but not only.
We believe that everyone should be able make financial decisions with confidence. Our site does not feature every company or product on the financial market. However, we are proud of the fact that the advice we provide, the information we provide, and the tools and resources we create are objective, independent and straightforward.
We know. You didn’t enter ministry to become an accounting professional. You are a church leader because you want to make disciples and share Jesus Christ's good news.
This is the ideal time to utilize our church bookkeeping services in order to ensure that all financial records and policies are correctly set up. Because you may only have one person to do your bookkeeping, outsourcing your bookkeeping allows you to concentrate on the growth of your organization.
When reconciling your bank statements and your credit card statements, you'll find errors such duplicates and missing transactions, bank errors in rare instances, and amount discrepancies.
The tip to avoid this church bookkeeping error is to thoroughly look at each individual you are paying for a service they do for the church and using the IRS guidelines (link in the Misclassification article) to determine if they should be classified as an employee with all proper payroll tax withholding and matching or could be classified as an independent contractor.
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.”
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.
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.)
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.