You might have been keeping track of your church's budget by yourself or with the help of church staff. However, outsourcing that work to a third-party virtual bookkeeping service can actually make it easier for your church to know what it really has in reserve. Bookkeeping for churches should track the number of funds and expenses separately so that you get a more detailed look at how the church is doing financially. Your method may have worked very well, but if your church is expanding, it's time for your bookkeeping services to expand as well.
Basic Operational Expenses and Pay
You've got to get a handle on how much is being spent on basic operational expenses and pay. Those are really going to be your biggest costs, and you have to be sure you're both paying reasonable amounts and conserving money well. Tracking these in one specific category (instead of mixing them in with other expenditures, such as snacks for a holiday fair) is essential for ensuring you always have enough to keep the lights on and your staff paid.
Campaign/Fundraising Results and Expenditures
A great way to see how your fundraising methods are working out and to show church members that you're tracking everything carefully is to have a virtual bookkeeping service track campaign and fundraising income and outgo. Keeping these separate from general funds ensures you don't go overboard with planning and that no incoming funds get mixed up with other money.
Sometimes donations to the church are earmarked for a specific purpose but deposited into one account. Bookkeeping for the church needs to keep track of how much of that fund is meant for which purpose, and which expenses fall under which category. While it might not seem so bad at first if you mistakenly take money from one fund for another purpose and you replace the funds, it looks strange to someone who wasn't aware of why you did it. Tracking those funds closely is the best way to keep them all straight.
Third-party virtual bookkeeping for your church also adds a layer of security. No one wants to think about someone from the church misusing funds in any way, but it does happen. And in those cases, additional accusations can fly as people who are unhappy with the penalties accuse church leadership of being too lenient or too harsh. Separating the bookkeeping services from the church personnel themselves eliminates those potential problems and leads to everyone being happier overall. Virtual bookkeeping for churches is very helpful and worth arranging for.
For more information on church bookkeeping services, contact a company like Dennison's CPA, PC.Share
18 March 2022
As I see it, one problem with most budgeting programs is that they don't account for the "real life" factor. Anyone can tell you not to spend anything and to save everything, but when it comes to feeding your kids or dealing with a medical emergency, most budgets get thrown out the window. I realized that this was a problem, so I decided to start focusing on budgeting for real life. I decided to forget everything that I knew about budgeting and started working with a clean slate. This blog is all about budgeting for real life and knowing how to spend your money the smart way.