Have you been considering your church’s accounting options?
The words ministry and accounting can seem like a bit of a paradox. As a not-for-profit organization, churches often think of financials as that which we, “render unto Caesar,” rather than a part of ministry. However, it is critical for all churches and ministries to have a solid handle on their financials. Without it, questions like, “Do we have enough money for this program?” quickly become murky. For many churches in this financial climate, hiring another staff member to handle bookkeeping is not feasible, but there is another solution. Consider outsourcing your accounting to an experienced accountant. Bookkeeping can be overwhelming and having a professional on your team can save you time, money, and stress in the long run, Not sure? Here are ten reasons why every church should look at outsourcing their accounting.
Skills and Experience
Hiring an accountant means you get a professional whose experience is now working to help build your ministry. They can ensure you are following best practices and can answer complicated questions. You will also have an unbiased opinion to rely on. It is easy for internal bookkeepers and others on staff to be emotionally invested. With an outside accountant, you are getting an expert who can provide objective analysis, years of financial experience, and peace of mind to your ministry.
Accounting Accuracy
Whether you are a local congregation or a multi-campus ministry, every dollar given has been entrusted to you. You must make sure you are keeping accurate and up-to-date records that follow generally accepted accounting principles (GAAP). With an accountant, you are less likely to miss deadlines or make mistakes.
Save Time
Every church leader wishes they had more time in the day. Do not spend valuable hours worrying about tracking finances. An outsourced bookkeeper means you can focus on what you are called for, the day-to-day work of ministry!
Save Money
Many churches simply cannot afford to have a full or even part-time bookkeeper on staff. This could lead to a staff member juggling multiple roles without the necessary expertise or the understanding of church financials. Hiring an accountant gives you a higher quality of work at an affordable price, with packages designed to fit your church’s exact needs.
Improve Financial Processes
Hiring an accountant also allows you to improve your financial process. All churches need regular financial statements, but accountants can generate a variety of reports, tracking purchases, sales, payroll, assets, liabilities, and any other transactions you have in your church. A professional will also bring their online tools to your ministry, allowing you to be included in the process and be able to check on financials 24/7.
Protect Church Assets
Church assets can vary from physical property to designated funds, but all of them need careful monitoring. You need to be able to make sure you have money to pay rent or mortgage (as well as other expenses) and ensure that any ministry giving that is earmarked for a specific purpose is allocated correctly and tracked.
Consistency
Having a dedicated accountant working with your church means you will not have to worry if your church treasurer or volunteers retire or move. While waiting to find a new bookkeeper or train volunteers, costly mistakes can pile up. Make sure your ministry has stability so you don’t have gaps in knowing where you are financially.
Compliance and Tax Liabilities
Churches and ministries may operate as tax-exempt entities, but that does not preclude them from a variety of issues that accountants handle. Payroll taxes, workers’ compensation, and excess benefit transactions all require careful attention. An outsourced accountant will help you prepare for tax season and make sure your tax returns do not lead to a costly tax penalty or IRS audit.
Secure Church Grants and/or Loans
Many donors want to make sure that they are donating to a reputable organization. At the same time, if your church is looking for a loan to expand, you will be required to have Financial Statements. Make sure your ministry is ready to grow with professionally prepared Financial Statements. An accountant’s expertise may not only be required, it can help your church be more attractive to potential lenders.
Internal Controls
Perhaps one of the most important reasons for a church to consider external accounting help is stewardship. An accountant is not only a second set of eyes checking for mistakes, but they can also prevent willful fraud. This is of course a sensitive topic. No one believes that their ministry would ever have such an issue. Churches, however, are a unique target for fraud since there is a high degree of trust. A professional accountant will show that you are protecting your members’ contributions. Transparent processes will also help protect staff from false allegations.
Choose the Right Church Accountant
No two churches are the same, but there is a compelling reason for each of them to consider outsourcing their accounting to a trusted, experienced church accountant. Whether it is letting you focus on your ministry, helping your ministry grow, or providing protection from fraud, adding an accountant to your team makes your job easier and less stressful.
Want more information including
packages and options for your church? LDG Accounting Services would be happy to discuss your options.
Contact us today.
