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13. Record Keeping and Reporting

A. Financial Software

The church uses two types of financial software; one for membership and contributions, and another for bookkeeping. Currently we are using Planning Center Online (PCO) for our membership database and contribution software. QuickBooks Non-Profit, distributed by Intuit, Inc. (http://www.intuit.com), is used for bookkeeping. The Bookkeeper is the primary user of QuickBooks, and it resides on the bookkeeping computer.

B. Financial Reports

A standard financial report comprises (1) a balance sheet, (2) a net income statement (i.e., profit and loss or P&L), (3) a cash flow statement, and (4) “disclosures” to provide any necessary commentary or explanation. The chart of accounts is available on Quickbooks.

I. Balance Sheet

The balance sheet is produced monthly by the bookkeeper with the QuickBooks software. It outlines all assets and liabilities and is currently configured to accurately reflect the financial position of the church.  The bookkeeper provides a copy of the balance sheet to the finance team each month, and a year-end version by July 31st following the close of a fiscal year.

II. Net Income Statement

QuickBooks automatically produces profit and loss (net income) statements, which reflect the activity in the operating fund. These may cover any period and may be compared with the budget that is entered into QuickBooks at the beginning of the fiscal year.  The bookkeeper provides a copy of the net income statement to the finance team each month, and a year-end version by July 31st following the close of a fiscal year. Additionally, The bookkeeper provides a P&L with the year-end reports.

III. Team Reports

At the end of each quarter (i.e., in October, January, April, and July) staff members will receive a budget report for their programs and any team budgets they are responsible for.  This allows them to compare actual activity with their budget and plan for the future.

IV. Board Report

The senior minister will provide to the Board a monthly financial statement as well as quarterly statement that includes a balance sheet, cash flow and stewardship reports.

V. End of Year Report

At the end of the fiscal year, the finance ministry team provides a year-end report to the senior minister. The year-end closing procedure includes the following:

  1. Discussion of the church’s current financial condition with comparison of the final income and expenses to the congregationally approved budget and any recommendations for the financial well being of the church.
  2. Determination of whether the operating fund is in surplus or deficit and the year-end impact on the reserve fund.
  3. After the books are closed for the year net income is transferred to the reserve fund and designated funds should be reviewed and revised as necessary.
Updated on September 12, 2018

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