Even small churches have budgets of over $200,000.
If you're looking after the finances of your church, there's a lot of work to be done.
Church bookkeeping doesn't have to be taxing, however, provided you do it right.
Read on for some basic but essential church bookkeeping tips.
1. Assign Transactions Correctly
It's very important that all transactions are correctly assigned. Using the incorrect assignments can make a real mess of your books.
For example, a classic bookkeeping mistake is to assign any refunds to miscellaneous income. Refunds should instead be assigned back to the expense account that they came from.
You need to assign correctly so that you'll always know where to find specific transactions within your books.
2. Classify Workers Correctly
You may have a number of people who work at your church. Some of these people may be employees, and others may be independent contractors.
Knowing which is which is vitally important. If you pay someone as an independent contractor when they're an employee, you could be fined by the IRS. Most churches simply don't have the budgets to be able to pay unnecessary fines.
3. Make Use of Technology
You might enjoy doing the books by hand, but technology can make your life so much easier.
There is a huge choice of bookkeeping software available, all of which is designed to make keeping on top your books quick and easy. You can automate a lot of your regular processes, helping to speed things up and minimize any errors.
If you're thinking about trying out some church finance software, and aren't sure where to start, then check out the following link for some tips: https://www.iconcmo.com/blog/best-church-finance-software/
4. Reconcile Your Books Regularly
Keep on top of your books means setting aside time to regularly reconcile them.
Letting your accounts pile up without working on them not only means you have more work waiting for you when you finally get round to it, but can also lead to mistakes or even missed payments.
You should aim to reconcile your books at least once a month to keep things ticking over smoothly.
5. Keep Your Documents Organized
A simple but effective way to make your church bookkeeping simple is to have all of your documents well organized.
The last thing you want is to have to spend an hour searching for a document when you could be spending that time getting some proper work done! By keeping all of your documents properly organized, you can ensure that when it comes time to do the books, the job takes no longer than it needs to.
Good Church Bookkeeping Means Keeping Good Books!
If you get your church bookkeeping right, it means your bibles won't be the only good books at your place of work and worship.
By following these tips, you should be able to keep on top of your church accounts. If you're still finding things a struggle, then it may be time to consider hiring a professional to help.
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