Fund accounting is the term used to describe the type of accounting that is appropriate for most churches. It tracks designated moneys and reports on them by fund. Your church management system should provide this option. If the Balance Sheet is set up correctly, it should clearly articulate three things.
- The money you have in the bank or other investments (defined as Assets).
- The payables or other obligations that you owe to third parties (Liabilities).
- The equity (Funds) that identify who the money belongs to.
The Income Statement provides information on the total receipts and total expenditures over a specific time period and includes year-to-date totals. A Fund Activity Report allows you to see the changes to the various fund balances and ties to the Balance Sheet.
Balance Sheet Changes
Steeple Accounting can educate your church management and staff on a variety of financial/accounting topics such as:
- “How to Read Church Financial Statements”
- “Church Payroll Obligations”
- “Internal Controls for your Church”
Contact us to set up a customized information session addressing your unique church administration challenges and compliance questions.