The church business has grown, and it is now an industry that controls billions. It is important to manage this money wisely. Accounting or bookkeeping is the process at which organizations collect record and analyze financial information in a format that is easy to understand for the stakeholders. Since a church is a non-profit organization, people generally assume that accounting is no important. But it is extremely important to have sound policies when it comes to Bookkeeping for Churches. If you do not see the need to have accounting policies in your church, the article will elaborate on the benefits accrued by having a functional accounting system in your church.
The property and asset of the church can be easily mishandled. This is because unlike other organizations, there are very few measures that have been set to safeguard the assets, and people are rarely alert. But when you have sound accounting doctrines, you will notice that you are able to safeguard the assets and properties of the church.
Just like any other organization, a church has projects which need to be carried out. These projects need financial resources. The church stakeholders need to know how much money the different projects require before they start them. Accounting records help the stakeholders to know this information. With this, the projects are carried out successfully, and hence, the church is able to progress.
A huge percentage of church money comes from donors and church members. As much they are not interested in day to day running of the church, they need reassurance that their money is being properly utilized. If they do not get any sense of accountability from the church, they might not donate money in the future. Having books of accounts creates a sense of accountability and transparency, which helps in securing donations.
If you want to approach a financial institution, you need to have financial records. You cannot approach a bank without showing how you receive income. So you will be required to prepare your books of accounts. This is particularly so when you want to get credit from these institutions.
The operations of all organizations are monitored by the government. Since a church is also an organization, it is included here. The government requires all business owners to provide detailed financial information of their organizations. Therefore, the church needs to have financial records for them to be able to provide such information. Therefore, keeping the books which have financial information is important.
As a church, you need to know when you are growing and declining. You can know this by evaluating your financial records. You will need an accountant to create your books of accounts so that they can be used to determine your growth.
Bookkeeping is very important but it is neglected by a lot of churches. It is assumed that a church may not require maintaining their books because it is not considered a profit-making organization, but, this is not the case. As a church leader or manager, you should insist on having good financial records. The advantages of having these records have been highlighted to offer informative information when you are discussing whether to hire a bookkeeper or not.
The property and asset of the church can be easily mishandled. This is because unlike other organizations, there are very few measures that have been set to safeguard the assets, and people are rarely alert. But when you have sound accounting doctrines, you will notice that you are able to safeguard the assets and properties of the church.
Just like any other organization, a church has projects which need to be carried out. These projects need financial resources. The church stakeholders need to know how much money the different projects require before they start them. Accounting records help the stakeholders to know this information. With this, the projects are carried out successfully, and hence, the church is able to progress.
A huge percentage of church money comes from donors and church members. As much they are not interested in day to day running of the church, they need reassurance that their money is being properly utilized. If they do not get any sense of accountability from the church, they might not donate money in the future. Having books of accounts creates a sense of accountability and transparency, which helps in securing donations.
If you want to approach a financial institution, you need to have financial records. You cannot approach a bank without showing how you receive income. So you will be required to prepare your books of accounts. This is particularly so when you want to get credit from these institutions.
The operations of all organizations are monitored by the government. Since a church is also an organization, it is included here. The government requires all business owners to provide detailed financial information of their organizations. Therefore, the church needs to have financial records for them to be able to provide such information. Therefore, keeping the books which have financial information is important.
As a church, you need to know when you are growing and declining. You can know this by evaluating your financial records. You will need an accountant to create your books of accounts so that they can be used to determine your growth.
Bookkeeping is very important but it is neglected by a lot of churches. It is assumed that a church may not require maintaining their books because it is not considered a profit-making organization, but, this is not the case. As a church leader or manager, you should insist on having good financial records. The advantages of having these records have been highlighted to offer informative information when you are discussing whether to hire a bookkeeper or not.
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