This will prevent you from making an error in your church bookkeeping. Make sure to carefully review every individual paying for a particular service. Use the IRS guidelines (link at the Misclassification article), to determine whether or not they should be classified with the proper payroll tax and matching.
Religious and faith-based entities need the expertise, guidance, and support of a Certified Public Accountant.
Our church bookkeeping services are available now to help you ensure that your policies and financial records are in order. You may have a small team so it is a good idea to outsource your bookkeeping services. This will allow you to focus on your growth and not get behind.
Our clients have access to our deep knowledge about the unique challenges facing religious organisations today. We spend hours each year staying current on the tax laws and new regulations that affect our non-profit clients. This includes churches, synagogues. mosques. Church schools. Daycares.
Your church will be able to manage the accounting tasks associated with programs like preschools and fundraising, ensuring these programs — and your ministry, are a success.
....Another good reason to keep financial records is to make informed financial decisions. If you can pull up a report, you will be able see that your expenses are higher than they were in previous years.
Your church's administration staff and leadership team can now focus on the church’s mission and not on the bookkeeping.
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.
Churches And Transparency
The standards of the Evangelical Council on Financial Accountability require that member organizations provide audited financial statements on request.
Churches and religious nonprofits must maintain highly accurate accounting and bookkeeping records in order to maintain their nonprofit status, budget accurately, and provide reporting to government entities and their parishoners or members.