So why not consider outsourcing? Outsourcing can provide an additional link in internal controls and increase expertise and accuracy for some small- to medium-sized churches. Let's take an in-depth look at each:
It is not possible to keep a church's books in order by maintaining a check registry.
A bookkeeper might also be required to wear the shoes and treasurer of an accountant or treasurer in the case of a church. They are responsible for all aspects of financial affairs of the church. They are responsible for the following:
By reconciling your accounting with your bank and credit card statements, you will find errors such as duplicates, missing transactions, bank errors on rare occasions, and amount discrepancies.
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.
A church bookkeeping system should be set up that tracks income and expenses as well as assets and liabilities.
Since long, church bookkeepers have been mistaken for accountants. But they have different responsibilities. They maintain financial records for the church, which include income and expense records. They must keep accurate records of each transaction, including the date and amount. It is their responsibility to keep track and verify the accuracy of accounting procedures. Accountants on the other end perform all tasks of bookkeepers, but also provide accounting, tax planning, financial planning and payroll processing.
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.