Need bookkeeping help?
Does your church need the assistance of someone knowledgeable in bookkeeping for churches?
Does your church need help accounting for designated/reserved funds?
Are you concerned about properly handling your pastors’ housing allowance?
Do you know that your financial reports are wrong, you just don’t know why or how to fix them?
If you said yes to any of the questions above, you’re not alone. Accounting for church finances is uniquely different from business finances and many churches have these same issues.
Bookkeeping for Churches
A church’s primary source of income is donations. These donations must be properly accounted for in order to send out accurate contribution statements. There are situations where a donation is not tax deductible, even though the donation is to a church. Donations that are designated or restricted to a particular use must be tracked and managed. Also, non-monetary donations (e.g. gifts of stock) must be handled properly.
When it comes to expenses, these need to be tied to the appropriate ministry. Use of designated funds must be tracked separately to show that the donated funds were used for the purpose they were intended. Payroll also has some unique differences from normal business payroll. A minister is allowed a housing allowance which is considered non-taxable income. However it must be properly set ahead of time and then handled correctly when processing payroll. Also, a minister’s dual-tax status with the IRS and Social Security Administration must be understood.
We Want to Help
Many churches rely on volunteers to perform tasks related to the ministries of the church. Most churches couldn’t survive without the help of those volunteers. However, some areas require a level of expertise that your volunteers may not be able to provide. Manage the Books specializes in providing bookkeeping services to churches and understands the issues that they need to deal with that are different from standard business bookkeeping.
Please call us at 585-454-9408 or email us at firstname.lastname@example.org to find out more about how Manage the Books can help your church meet its bookkeeping needs.