For a church to be financially healthy, accuracy and expertise are essential. A qualified and trained bookkeeper is an expert who understands the best way to enter, complies with federal and local requirements, and makes sure your reporting is accurate.
Our clients benefit from our in-depth knowledge of the unique challenges faced by religious organizations. Each year, we spend hours researching the latest tax laws and regulations that will impact our non-profit clients, including churches, synagogues and mosques, church schools and church daycares, and other religious-based organisations.
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.
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:
FT Walton Church Bookkeeping LLC makes it super simple to get up and running. Our general ledger is perfectly structured and you don't need an accounting to degree to understand.
Our experienced not-for-profit tax advisers have many years of experience working with churches, synagogues, church schools and other faith-based organizations to help minimized their taxes and protect their tax exempt status.
So why consider outsourcing? For some smaller to medium-sized churches, having an outsourced bookkeeper can increase expertise & accuracy, lower bookkeeping costs, and provide a missing link in internal controls. Let’s take a look at these one-by-one:
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.
seven years
Financial Records are traditionally kept for seven years. This relates to the laws of tax audits and the number of years back the IRS is allowed to look when determining an organization's tax liability.
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.)