Churches may often put bookkeeping and accounting on the back burner, especially when they are busy and thriving. However, that is precisely when you need a bookkeeper the most. Church bookkeepers can provide an array of services for churches that will make their day-to-day and long-term planning much easier.
So, what can a bookkeeper do for a church?
Provide Detailed Monthly Reports
Churches need to know where their money is coming from and where it is going. A bookkeeper can provide a detailed monthly report that will show exactly that. This information is critical for churches to make informed decisions about their budget and spending.
Help Prepare for an Audit
If a church is ever audited, a bookkeeper can help prepare for it. They will have all of the necessary documentation and records in order, which will make the audit process much smoother.
Provide a Cashflow Analysis
A cash flow analysis is a report that shows how much money a church has coming in and going out. This is important for churches to track so that they can budget accordingly. A bookkeeper can prepare this report for a church on a monthly or quarterly basis.
Provide a Budget Forecast
Without a budget forecast, you will not be able to have a path to meeting your long-term goals. For instance, if your church is interested in creating a food bank to expand community outreach, you can create a forecast to show how you will finance this goal. Without these types of plans, you will not be able to instill confidence in your donors that you will be able to accomplish your goals.
A Bookkeeper will help you create this forecast to help you better plan for the future.
Help With Clarity
Churches who set aside money to designated funds without a bookkeeper may have confusion as different leaders may be unclear about what the money is for and why it can’t be used for other purposes. The funds may end up in a general account where the money is drained for other purposes. They may even designate too much money for a particular designated fund and find themselves restricted when they need to use it for another purpose other than the one it is intended for.
There are many reasons why a church needs a bookkeeper. These are just a few of the most important ones. If your church does not have a bookkeeper, now is the time to hire one. You will be glad you did!