As the leader of a church, you have more important things to do than to keep your own books. We take care of your books for you, so you can get back to helping others!
Each month or quarter we'll do the following things for you:
- Reconcile your bank account
- Generate income statements and balance sheets
- Clean up your general ledger
- Provide unlimited consultations
These tasks form the solid foundation of your church’s accounting system. You can also customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of our other services.
Reconciling your church’s checking account each month allow us to keep your bank account, accounting, and taxes up-to-date.
Having us reconcile your account each month allows you to:
- Identify lost checks, lost deposits and unauthorized wire transactions.
- Detect and prevent excess/unjustified bank charges and ensure transactions are posted correctly by your bank.
- Detect and prevent embezzlement of funds from within your church.
- Know how your church is doing. You can't really know unless all accounts are reconciled and properly accounted for on your financial statement.
- Manage your cash more effectively. Proper management of funds not only saves money, but also makes money for you.
- Protect yourself. By timely reconciling and promptly notifying your bank about any unauthorized, fraudulent or forged checks presented to your bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. Crime happens, and it’s much better to be proactive than reactive if it happens to you!
- Sleep Better. You will sleep more peacefully at night knowing that your bank accounts are reconciled and in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.
Income Statements and Balance Sheets
An income statement, otherwise known as a profit and loss (P&L) statement, provides you with information about how well your ministry performed over a given accounting period.
An income statement allows you to:
- Track revenues and expenses so that you can determine the operating performance of your ministry.
- Determine what areas of your ministry are over-budget or under-budget.
- Identify specific items that are causing unexpected expenditures (i.e. phone, fax, mail, or supply expenses).
- Track dramatic increases in product returns or cost of goods sold as a percentage of sales.
- Determine your income tax liability.
A balance sheet gives you a snapshot of your church’s financial condition at a specific moment in time.
A balance sheet helps you to:
- Quickly get a handle on the financial strength and capabilities of your ministry.
- Identify and analyze trends, particularly in the area of revenues ie. (donations and contributions), and payables.
- Determine if your church is in a position to expand.
- Determine if your church can easily handle the normal financial ebbs and flows of revenues and expenses.
- Determine if you need to take immediate steps to bolster cash reserves.
- Determine if your church has been slowing down payables to forestall an inevitable cash shortage.
Balance sheets and income statements are fundamental elements in financial reporting for potential lenders (i.e. banks) and vendors who are considering how much credit to grant you.
Maintaining a Clean General Ledger
The general ledger is the core of your church’s financial records. These records constitute the central "books" of your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off your entire reporting system.
Having us review your general ledger system each month allows us to track down any discrepancies such as inaccurate recordings of contributions or any unrecorded payments. We will fix the discrepancies so your books are always in top shape!
We are always available to help you fully understand how to interpret and utilize the financial information we provide. Our consultations are included in our price, so please feel free to contact us whenever you have a question or concern.