As I talk with seasoned pastors and leaders, almost all of them tell me it is increasingly harder to be a pastor due to the variety of demands. They need to know more, do more, and be more in the church while being an excellent spouse, parent, and … [Continue reading]
Monthly Financial Statements
Posted on March 31, 2015 Written by
My “Intro to Accounting” professor taught me some basic concepts which have guided me ever since. They are simple principles but vitally important to any and every organization. Always release a complete balance sheet and revenue & … [Continue reading]
Cost Accounting – Pros & Cons
Posted on March 24, 2015 Written by
Cost accounting is the practice of determining how to divide an expense between various budget line accounts. There are some expenses which are easy to cost account because it can be tracked without much effort: Postage Photocopies Special … [Continue reading]
Designated Funds and UPMIFA (part 2)
Posted on March 17, 2015 Written by
Every church I’ve worked with has designated funds which are dormant. The long-standing rule of thumb was that to re-purpose the money in these funds was that each donor needed to be contacted to request permission to alter the use of their gifts. … [Continue reading]
Designated Funds and UPMIFA (part 1)
Posted on March 10, 2015 Written by
Churches are the beneficiaries of designated gifts – people who give to specific causes that touch their heart. This can be scholarships for students to go on mission trips or to college, to pay for children’s supplies and events, and scores of other … [Continue reading]
Chart of Accounts (part 4 of 4)
Posted on March 3, 2015 Written by
Large churches can have a complicated accounting structure but I strongly recommend a simple one. Fortunately all good accounting software allows for flexibility. The greatest area which needs flexibility is in expenses. For instance, some churches … [Continue reading]
Chart of Accounts (part 3 of 4)
Posted on February 24, 2015 Written by
A chart of accounts must start with the end in mind. The end is always the reports that you want to generate and use for decision-making. What data do you need and how should that info be presented? That determines the format of the chart of … [Continue reading]
Chart of Accounts (part 2 of 4)
Posted on February 17, 2015 Written by
In part one, I talked in generalities about financial statements. This post is description of each of the major areas. Balance Sheet (no other name for this doc) Assets Cash on hand in bank and investment accounts Petty … [Continue reading]