Since churches rely heavily on their donors, they must maintain the trust of their supporters. Churches rely on donations to support their goal of benefiting their congregation and community, and any revenue generated goes back into the church to further the cause. Here are some tips to make managing the church accounting system easier. Different levels of access and permissions can be set for each user so sensitive financial data is protected.
Poor financial tracking can lead to mismanagement, distrust, or even legal complications. Bookkeeping in a church might not sound as urgent as writing a sermon or planning a community event—but it is one of the most essential aspects of church management. Church Training Center is devoted to Church accounting and are far more familiar with the polity, structure and needs of church leadership. We offer a variety of training and support options based on your ministry’s needs.
She is an asset to the company, and that makes it easy to recommend StartCHURCH services for bookkeeping. I feel when she does the bookkeeping, I do not have to be concerned as to if she has accurately performed the services. Working with StartCHURCH feels more like an extension of my church and less like a third-party company. That’s why we guarantee your data will be protected on our secure server.
- They exist to support a mission and programs for the community, so their accounting is a little different.
- A church with 20 or 30 members may feel “too small” to need a formal system.
- Following best practices for church bookkeeping is essential for maintaining financial transparency, accountability, and good stewardship.
- Xero is a cloud-based accounting platform that offers strong automation, collaboration, and scalability.
- Accountability and transparency are the keywords when it comes to church bookkeeping.
Wave Accounting
- Ensure the software has templates for the unique reports used by churches, such as statements of financial position, functional expenses, and activities.
- Receipts are stored in a format accepted by the IRS, so tax prep is smoother and audit-proof.
- It combines accounting, membership, and event management features in one system, giving ministries a practical way to manage both people and finances.
- Here are some tips to make managing the church accounting system easier.
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We will provide an individualized proposal with the options that will best support your mission. It’s time to change the way we talk about giving in church! Receive practical church finance, management and growth tips delivered right to your inbox! “I was impressed with their heart for the Church and the way that Simplify Church helps local ministers focus more on ministry and less on the business of the church.” You say goodbye to the weight of managing church finances and hello to peace of mind. We want to partner with you and give you the confidence and peace of mind that your church finances are being handled correctly.
Specialized church accounting software simplifies compliance by using nonprofit chart of accounts, automated receipts, and preformatted financial statements. Unlike business tools, specialized church accounting software supports true financial stewardship and transparency. Find the 8 best church bookkeeping software of 2025 to manage donations, finances, and ensure smooth church accounting. Aplos focuses on fund current portion of long term debt cpltd accounting and donor management, two key aspects of church bookkeeping. Aplos is a popular choice for churches that want software built specifically for nonprofit and faith-based financial management.
Divide Financial Responsibilities
You are most effective when you spend your time focused on people and growing your church, not crunching numbers. You need a foolproof system to manage your church finances and give you the insights you need to lead your church well. The amount of stress that I don’t have as a church planter is all because of their amazing support. Say goodbye to the stress and overwhelm of managing church finances and hello to peace of mind. We’ll help you manage your church finances so you can focus on growing your church.
We’ll pay your employees and handle all payroll-related taxes.
Shoeboxed is the only receipt scanner app that will handle both your paper receipts and your digital receipts—saving customers up to 9.2 hours per week from manual data entry! Church staff can send a batch of receipts in a pre-paid Shoeboxed envelope for scanning and digitization and save time on processing. To digitize documents, church staff can take a photo of the receipt or document with their mobile device, and the app will scan and upload the data to your Shoeboxed account. Shoeboxed automatically extracts critical information from receipts, eliminating clutter, manual data entry, and reducing errors. Churches can simplify their bookkeeping by automating or outsourcing their receipt and document management.
Our Services
Outsource receipt scanning to Shoeboxed’s scanning service and free up your time for good. Receipts and documents become part of a searchable database so you can find information quickly. All receipts and documents are stored in the cloud, so they are accessible anywhere, which reduces the risk of losing important paperwork. Save my name, email, and website in this browser for the next time I comment. Some versions, like QuickBooks Nonprofit, are better suited for church needs.
The Real Cost of Bad Bookkeeping (and How to Fix It Before Tax Season)
This means more accurate bookkeeping, better financial management, and a more efficient and transparent operation so staff can focus on their mission and community outreach. Shoeboxed can help with church bookkeeping by automating receipt management, expense tracking, and financial reporting. Shoeboxed generates fund accounting reports, such as expense reports, showing where the funds are coming from and being allocated. Fund accounting is a powerful tool that helps churches maintain transparency and accountability to their supporters and congregation. This is why they employ fund accounting, which divides revenue into various categories based on designations, needs, uses, and church allocation.
In many small churches, ministry takes center stage—and rightfully so. Join over 1 million businesses saving on taxes by scanning receipts, creating expense reports, and reclaiming multiple hours every week—with Shoeboxed. Turn your receipts into data and deductibles with our expense reports, including IRS-accepted receipt images. Many smaller churches still use cash accounting since income and expenses are recorded when received and paid. A for-profit accounting system uses an income statement to show revenue what you need to know about controller salaries and jobs earned during a specific period, while church accounting uses a statement of activities.
Accountability Matters
Since no one owns churches, there is no equity among stakeholders. For-profit balance sheets look similar to nonprofit statements of financial position. To keep this revenue stream, supporters must know their donations are being used correctly or as requested. Having a multi-year plan ensures financial stability for the church. An annual budget is a roadmap for the church to stay on track, meet goals, and stay financially healthy.
In short, embracing best practices in church bookkeeping is not just a technical necessity – it’s a reflection of the church’s commitment to responsible stewardship and faithful service. These controls minimize the risk of fraud, errors, or mismanagement, and demonstrate that the church is accountable for every dollar received and spent. Transparent financial reporting also fosters trust among church members and donors, helping to build a financially sustainable and ethically grounded organization. Churches are entrusted with managing donations, tithes, and grants—often from generous, faith-driven congregants—and it’s critical to ensure those funds are handled with care and integrity. Its all-in-one functionality and affordability make it particularly valuable for small to mid-sized churches seeking simplicity without sacrificing essential features.
In-House Bookkeeper Gets Necessary Support
It delivers a strong foundation for financial management while maintaining the flexibility to adapt as ministries grow. It combines strong accounting tools with flexibility, making it suitable for ministries of different sizes. Churches and other nonprofits must follow specific legal and tax rules, including IRS reporting and contribution acknowledgment. When financial reports show exactly where money was received and how it was spent, it builds confidence among members and leadership alike. Donations often come with specific restrictions, and specialized software keeps those funds separate and traceable.
It brings together accounting, member management, and communication tools in one lightweight platform. ChurchTrac is an affordable and easy-to-use option designed specifically for small and mid-sized churches that need clear bookkeeping without the complexity of enterprise systems. It covers the essential bookkeeping needs while offering added tools for congregation and event management. PowerChurch Plus is well-suited for smaller or traditional churches that prefer a straightforward, church-centered accounting system. It combines accounting, membership, and event management features in one system, giving ministries a practical way to manage both people and finances. PowerChurch is a long-established software platform developed with churches in mind.
These features save time and reduce the risk of errors during audits or end-of-year reporting. They can generate annual giving statements, track pledges, and manage recurring donations in one place. If you’re ready to turn your financial chaos into clarity, consider how SteepleMate can help. It protects your mission, builds trust, and ensures what is an accrual you’re ready for whatever God brings next.
Avoid burnout and risk by assigning more than one person to financial roles and using board oversight. Avoid giving one person total control over finances. Monthly or quarterly financial statements, budgets, and contribution summaries allow for proactive planning and increased transparency.
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