This is the second of a three-part series. In this blog we’re going to review the order of the chart of accounts, account numbering, how the order of accounts translates to reports, some do’s and don’ts, and finally the two main methods of accounting – accrual and cash-based. In the third article, we’ll review why… ⪼ Continue Reading…
church accounting software
Accounting For Churches — Avoid These Mistakes
Let’s start out this topic of accounting for churches with two quotes. The first is from Charlie Munger, Warren Buffett’s business partner for over four decades. Charlie once said, Proper accounting is like engineering. You need a margin of safety. Thank God we don’t design bridges and airplanes the way we do accounting. Charlie Munger.… ⪼ Continue Reading…
Quickbooks For Church Accounting
When choosing a church accounting package, the first question that should be asked of any package is — does it obey the Financial Accounting Standard Boards (FASB) Topic 958 and other rules set forth by GAAP and the IRS? If the software doesn’t enforce strict guidelines to follow these rules, then it really doesn’t matter… ⪼ Continue Reading…
A Church Chart of Accounts Explanation – Part 1
The church’s chart of accounts (CoA) is the building block for your entire church accounting system. In a proper church accounting system, the CoA works in conjunction with funds, to create a robust church fund accounting system that answers the question of accountability. Funds working with the CoA, provide a multiple tier reporting structure that… ⪼ Continue Reading…
Church Budgets Aren’t Financial Statements
Church financial statements are the reports churches should be reviewing on a monthly basis. While church budgets may be important, this is only a best guess as to what will happen throughout the year. More time each month should be dedicated to reading through financial statements of what has happened rather than the budget. Many… ⪼ Continue Reading…
Choosing a Church Accounting Software
Deciding which church accounting software to purchase is a difficult decision to make. Selecting the financial team that carries out the day-to-day operations of the church is equally as difficult. Both need to be reliable to ensure the church has the best available information to make financial decisions. Accurate financial statements reflect assets, liabilities, and… ⪼ Continue Reading…