Wednesday, February 13, 2019

Tips for Preparing Accurate Church Financial Reports

Many larger churches have their own accountants that they keep on staff. Even if you work at a small church or are just in charge of the reports of your committee or department, you may prepare financial statements for accounting purposes, even if the ultimate responsibility lies with someone else. Here are some goals to aim for in order to create accurate reports.

Timely

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Recording income and expenses as they happen is crucial to making sure your records reflect your true finances. Whether you are preparing individual contribution statements for tax purposes, a statement of financial activities for the year or a statement of financial position at the end of the month, these reports all depend on consistent data entry that happens in a timely manner.

 

 

Complete

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You can master your church bookkeeping software and be able to answer complicated questions about church taxes. If you don't enter complete data into your program, however, your balance sheet is not going to come out right. In order to make all the numbers match up the way they're supposed to, you have to include every donation, expense, and asset.

 

 

Concise

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Church finances can get complicated. If the people reading your report don't understand what they're looking at, it can be especially confusing. Report the information as succinctly as possible so that no one gets bogged down in too many extraneous details. Your report should read simply enough that anyone who pays attention to them can get a clear picture of how the church's finances stand.
It is important that everyone who handles any part of the church finances understands how to report the numbers so that the church's records are correct. By making sure you have all the information you need and reporting it in a timely, concise manner, you can generate accurate reports.

Joyfully,

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