Bookkeeping for Churches

If you’re new to bookkeeping and just getting started with your church, we’re going to share the bookkeeping basics and your first steps to staying compliant.

Bookkeeping for churches is the process of maintaining a church’s financial records. This process includes recording all details of the church’s transactions, income, expenses, assets, and liabilities.

Everything your church owns and spends, whether monetary or nonmonetary, must be tracked and recorded. While each church’s bookkeeping is unique, use these bookkeeping steps to get started.

Where to start?

Establish your bookkeeping system

Determine the system and process of how your church will handle bookkeeping. Will you record financial data using a digital tool or a physical ledger? Who will be responsible for bookkeeping?

Record all transactions

As financial transactions take place, everything must be recorded in thorough detail. That way, you can stay compliant and prepared and avoid having to go back and add records after the fact.

Reconcile your books

Everything must be reconciled on a monthly basis. Look for any errors or mistakes and address them quickly to keep your books accurate and up-to-date.

Produce financial statements

Summarize your financial information in a report detailing your revenue, expenses, and net asset change. To comply with the IRS’s accounting standards for churches, you must produce a Statement of Financial Position, Statement of Activities, Statement of Cash Flow, and Statement of Functional Expenses.

A great reason to hire out bookkeeping for your church is that it sets up accountability for the protection of staff and the Lord's funds. HarQuin was founded for the glory of God. Learn more about our services for churches and ministries and get a free estimate!