Contact Brad@rpfin.org is you have questions
TO: Interested Ministries RE: If Brad was the Volunteer Board Treasurer Originated: January 2008
Below is a transcript of another hypothetical Online conversation, or DIALOG between Brad@rpfin.org and TAYLOR the Volunteer Board Treasurer plus FRAN. the Ministry Computer Bookkeeper.
SEE LAST ITEM BELOW for list of " FREQUENTLY USED VOCATIONAL TERMS"
Fr: Taylor
Brad, I am the Voluntary Board Treasurer of a Bible believing church with two pastors and three other paid staffers. We have a general fund annual budget of over $500,000 and we handle probably $75,000 more per year with about a dozen different special church funds. One of these funds is money for a new building project within the next six to nine months.
Basically I would be interested in what you would do if you were in my place, or what would you do if you were the Voluntary Board Treasurer of a church like this.
But, please first share with me your church finance background.FR: Brad@rpfin.org
Thank you for mentioning that you handle some $575,000 annually. For smaller Churches that handle less than some $200,000 annually, I suggest that you "farm out", or outsource, your bookkeeping via something like INTERNET CHURCH FINANCIAL SERVICES as detailed within This Link. See also the content of when you Go Here. and Here for more info about Ministry Finance Applications. After July 2006 please especially consider the "Spending Control" resources found when you Click Here.
W H A T is "INTERNET CHURCH FINANCIAL SERVICES" ?
- This service provides a straight-forward computerized Church Fund Accounting and Reporting system.
- The key accounting software product is Quickbooks (QBs). -- go to eBay for very usable earlier editions, etc.
- As serviced by qualified personnel via the Internet. Click here for a possible source.
- The results include: 1> Report of who belongs to the money on deposit - Go Here for sample 2> "Actual to Budget" General Fund expense reporting - see Go Here for a sample, and 3> electronically handling clergy and all payroll.
- It could include the use of Excel spreadsheet software
- The service might include some ASSUROR aspects - please see Click Here for more info.
W H O needs this service ?
- Smaller Evangelical Churches
- Whose staff/volunteers have limited Church Fund Accounting experience and are comfortable using Computers and the Internet
- The Church has less than some $200,000 annual income
- The Church is located anywhere in the USA or Canada
H O W does it work ?:
- A Church Finance savvy HOMER is retained; or a Mom or a Keenager who works via the Internet from their home. Please Go Here for more details.
- The service would include use of inexpensive older versions of the desktop QBs software as obtained via eBay or other sources. Or the QuickBooks Online Edition (QBOE) as explained at www.quickbooks.com
- The desktop QBs file content is assured and moved weekly by email to/from a CHURCH volunteer's home computer (usually) and the HOMER (and possible a Ministry savvy CPA-Auditor). Please Click Here for some info about the QBOE.
- The service has a weekly finance emphasis;
- Please link to Internet Financial Services for more specifics
FR: Brad
Yes, I have some 21st Century computer and electronic thoughts. But let me share also my views per the "link-able topic list" below. Please Click Here to view a list of Church resources.
From the following "link-able topic list", please click on those of interest to you.
- Reporting and Understanding Church Finances - also GAAP at Churches
- Current Finance Activity Accounting Emphasis
- Make full use of Internet and Computer System Tools
- Church Finance Policies
- Meeting re Church Finance
- Budget and/or Spending Management
- Maximize Internal Financial Controls
- Manage Bank Balances and Investments
- Righteous Personal Finance
- Management of Amounts due to the Church/School
- 21st Century Church Revenue Issues
- Pay Bills Electronically
- Payroll - Retain Someone Else to do it
- Auditor Matters
- Church Weekly Counting Information
REPORTING AND UNDERSTANDING CHURCH FINANCES - Also GAAP at Churches.
Effective communication re finances at a Church must take place. Those that need to know MUST understand the financial information so timely decisions can be made. I would require full or complete, not cash only, ministry financial information so that we know immediately who belongs to the monies on deposit and where we are financially.
With regard to General Accepted Accounting Principles (GAAP), please Click Here and Here for some views on their "end of year" and "during the year" application, etc.Building Fund Q & A via Brad Pendable -
Self Funding Activities Q & A --- 02-14-08
CURRENT FINANCE ACTIVITY ACCOUNTING EMPHASIS
We would segment our financial records so we can concentrate on current financial events. See information below re such options of having a separate set of books for your Land, Building and Equipments (LB&E) non cash assets and liabilities, etc --- plus, probably, your Building/Facility construction effort..
Church /Fixed Assets Acctg Issues - 2007-07 ZZeod
Construction and LB&E Equipt matters - 0124-02 ZZall
Current-Dormant Sets of Books - 0127-02 ZZall
Depreciation at a Ministries - 0125-02 ZZall
Fixed Asset (LB&E) Accountability - 0033-01 ZZall
Fixed Asset & Debt Retirement Acctg - 2011-07 ZZeod
Fixed Asset and LB&E Issues - 0018-09 ZZall
MAKE FULL USE OF INTERNET AND COMPUTER SYSTEM TOOLS
We would make full use of software products such as QuickBooks (TM) (QB) for Church fund accounting. Please Click Here and view a list via the specific search group 05> QB resources. Also we would make full use of applicable Internet "Application Service Providers - ASP" resources.
(1) Church Giving DataBase - 2016-07 ZZeod
Church Internet Acctg System - 5888-01 ZZchu
Finances Electronically - 0035-01 ZZall
Finances Electronically; Church - 5016-02 ZZchu
Fund Acctg via QB Method One - 0622-02 ZZqbb
HOMERS & Church - 5777-07 ZZchu
HOMERS & MFTeams - 0905-03 ZZfwi
Internet Application Service Provides - 904-03 ZZfwi
Non BCIDOT QB Web Sites - 0640-77 ZZqbb
Online (Web) Ministry Finance Applications 0175-99/all
Online Bill Payment, etc. 0926-03 ZZfwi
QB Church Samples - 5900-01 ZZchu
QB and Fund Accounting FAQ - 0601-06 ZZqbb
QB in a Church setting - 2021-07 ZZeod
QB Sample Reports - 0799-07 ZZqbb
QB Self Exam - 0603-09 ZZqbb
QB Tips - 0699-07 ZZqbb
WEBrec - 0165-01 ZZall
CHURCH FINANCE POLICIES
We would fully document and index our authorized Finance policies; and we would regularly review them to insure relevancy.
Church Financial Polices Q & A - 5005-01 ZZchu
Finance Policy resources - 0081-01 ZZall
Fund Raising Philosophy - 0036-01 ZZall
Manual: Finance and Admin - 0054-01 ZZall
Record Retention Guide - 0082-01 ZZall
Short Term Mission Trips - 0007-01 ZZall
Ten Commandments re Ministry Finance - 0032-01 ZZall
MEETINGS RE CHURCH FINANCE
We would do our best to have quality Finance Committee (Ministry Finance Team) meetings. To include a regular and "written down" monthly expression of the group's view of what is most important.
Chairperson, Suggestions to - 0085-01 ZZall
Finance Committee (FinCom) Helps - 0028-01 ZZall
Finance Committee Perspective - 0029-01 ZZall
Finance Meetings - 0027-01 ZZall
MIFI (Most Important Financial Issues) - 0122-02 ZZall
BUDGET AND/OR SPENDING MANAGEMENT
The church needs to make full and effective use of a Budget effort (see content of 0053-01 re PlanJecting below) and "A to B, Actual to Budget" information at least weekly, or as needed.. It is not practical to control our buying via Purchase Orders, so we control our buyer purchases by the prudent use of Plastic ( see the content of 0014-02 below.)
Annual Budget comments - 0910-03
Budget Policies - 5005-08
Budgeting at a Ministry - 0010-01 l
Budgets or PlanJecting - 0053-01
Buying Cycle - 0013-01 l
Church Budget Comments - 5008-77
Church Budgets - 5013-02 }
Church Budgets and Accounting - 5009-02
Church Buying Protocol - 5014-06
Debt and Ministry - 0126-02 l
Glossary of mostly Budget Terms - 0062-07
Goals and Budgeting - 0011-01 l
Plastic Buying and Vendors - 0114-02
MAXIMIZE INTERNAL FINANCIAL CONTROLS
We will structure the finance assignments for maximum internal control; this would include retaining a non-auditor (ASSUROR) that independently corroborates the veracity of primarily our own cash transactions.
ASSUROR Services - 0676-09 ZZqbb
Check Signing - 0066-02 ZZall
Ideal Internal Controls - 0039-01 ZZall
QB and Internal Financial Controls - 0647-02 ZZqbb
MANAGE BANK BALANCES & INVESTMENTS
We will invest our pooled monies prudently. This includes the need to earn the maximum amount of Interest Income by leaving as little in the Checking Bank Account as possible; with the balance in special Savings Account that daily earns interest for us. When available, we will make full use of a Bank's provided Sweep process.
Imprest; Petty and Bank Accts - 0112-01 ZZall
Investment and Cash Management - 0043-01 ZZall
Investments & "Double Duty" - 0044-01 ZZall
Electronic Bank Statements 0165-01 ZZall
Replicating Ministries - 0083- 01 ZZall
Sweep/Float Management System - 0006-01 ZZall
RIGHTEOUS PERSONAL FINANCE ISSUES
We especially will provide Righteous Personal Finance - RPFin - assistance and needed resources to our people at the Church. Our people need to biblically manage their personal funds and we need to be a resource to them.
Church Perspective - 4011-02 ZZrpf
Resources - 4999-99 ZZrpf
RPFin; define - 4007-01 ZZrpf
RPFin Precepts/Principles - 4015-01 ZZrpf
Self Exam - 4001-01 ZZrpf
MANAGEMENT OF AMOUNTS DUE TO THE CHURCH/SCHOOL
Our Church does not have a School Ministry, but if it did, we would insist on collecting all amounts due us; or tolerate no bad debts. We would fully utilize the Schar (School Acct Receivable) tools/resources shown Here
21ST CENTURY CHURCH REVENUE ISSUES
See the many Church revenue issues below. Our Counters would be trained to complete their deposit process as a by product of making batch entries into our connected Laptop. We would continue to use Plastic (Credit Card) receipts for Donations and/or Church payments as these are 21st Century financial tools and vehicles.
(1)Church Counting Issues - 5001-77 ZZchu
Church Donations systems - 2020-07 ZZeod
Credit Card Receipts - 0050-01 ZZall
DonaMail & Integrated Software - 0021-02 ZZall
Donations - Calendar Year End Issues - 0023-01 ZZall
Electronic Funds Transfer - repetitive gifts - 0035-01
Fund Gathering/Raising Perspective - 0123-02 ZZall
Fund Raising Philosophy - 0036-01 ZZall
Gifts in Kind Accounting - 0055-02 ZZall
Personalized Giving Issues - 0020-01 ZZall
Phiscal Philosophy - 0052-01 ZZall
Pledge Accounting - 0061-01 ZZall
Pledge Accounting via QB - 0631-02 ZZqbb
SCRIP Store Issues - 0064-01 ZZall
SCRIP Fund Raising - 0101-02 ZZall
(3) Online (1) Cash or (2) Online via PDF Check via Plastic Check Church Dollar Receipt - Purpose: Donations types: Repetitive - like a Bldg Fund Pledge xxx xxx xxx Repetitive - Same amt each wk or month xxx xxx xxx Overseas or Mission Trip Fund Raising via People in Church (4) DonaMail xxx xxx xxx Those not in DonaMail xxx xxx xxx Approved (5) "Special Purpose Fund" xxx xxx xxx Scrip Order Online - pay when picked up xxx Order and pay Online xxx xxx Order & Pay at Church xxx Events - Samples Camps - Church collects and Camp receives one check for all Campers, etc. xxx xxx xxx AWANA xxx xxx xxx VBS xxx xxx xxx Men or Women's Activities xxx xxx xxx (1) The usual process Make full use of Church Website resources (2) Credit or Debit Card (3) Church receives Online a PDF doc and handles like a check (4) People Emphasis DataBase (5) Limited use - must be approved in advance , etc.
PAY BILLS ELECTRONICALLY
As to selected regular/repetitive bills, an agent sees that your vendor gets their money and integrates it within your accounting system as if you had produced a check, and then signed and mailed it to the vendor. We will utilize QuickBooks (TM) (QB) resources for this purpose. See information shared when you Click Here
PAYROLL - RETAIN SOMEONE ELSE TO DO IT
We would outsource this to QuickBooks (TM) (QB)-Intuit as they care for the entire payroll process .... that would include:
1> From info the Church provides, they compute the pay check;
2> It is integrated within our accounting system as if we had produced the payroll transactions;
3> The pay checks are deposited electronically to our employee's personal bank account;
4> They care for the needed Depositary Receipt processing;
5> Plus, they report and file required quarterly and annual payroll tax returns and employee reporting forms.
All of our clergy get appropriate W-2s after consideration for Clergy Housing Allowances and applicable tax free fringe benefits.Clergy Finance and Tax Issues - 0016-01 ZZall
Clergy Stipends and Allowances - 0037-02 ZZall
Employee vs Sub-Contractor Issues - 0024-01 ZZall
Forms 1099 - who must file - 0048-01 ZZall
QB and Clergy Payroll - 0607-07 ZZqbb
AUDITOR MATTERS
The Church has a specific AUDITOR strategy (in compliance with By-Law requirements) that includes ongoing use of trained Internal Auditors and periodic use of External Auditors (CPA Firms). Now the CPA firm provides an Opinion Audit every three years and a Review for the other years. At the time of the Opinion Audit they supplement their Management Letter with a Grade report ... see sample below:
Audits; Types of - 0003-01 ZZall
Audits & Volunteer Helps - 0057-77 ZZall
Exam Grades; Sample - 0128-77 ZZall
Remote CPA-Auditor firm and the use of Internet Hyperlinks - 5432-10 ZZall
Church Counting Matters
Below are some links to information about ways and means of doing the weekly Church Counting.
Suggested Policies - 5005-08 ZZchu
Specific Issues at a church - 5001-77 ZZchu
Internal Control Issues - 0039-01 ZZall
Fr: TAYLOR
All right ---- exactly what I had in mind. Our Ministry Finance Team will digest this information and then relate it to what we are doing.
" FREQUENTLY USED VOCATIONAL TERMS" ABOVE INCLUDE:
A to B = Actual to Budget reporting
ASSUROR = An Online means of getting validity of your QB maintained financial records.
ASP = Web based application, or Internet Application Service Provider
Big Pix = Big Picture report - snap shot or overview
CPA = Certified Public Accountant ..... Auditor
DIBS - Daily Interest Bearing Savings account
DONAMAIL = Dona)tion and Mail)ing systems
ECCU = Evangelical Christian Credit Union
FAQ = Frequently Asked Questions
FinCom = Finance Committees
Fixed Assets = Land, Building, Equipment, Furniture, Vehicles
GAAP = Generally Accepted Accounting Principles
GPFund = General Purpose Fund; or single GPF
HOMERS = Those like "stay at home" Moms or retired people who prefer to work from their home, etc.
KITS = Key Item Trend Statements; also see Big Pix above
LB&E = Land, Building and Equipment - Fixed Assets
MFTeam = MFT, or Ministry Finance Team
NPO = Non Profit Organizations
PHOTO = Ministry Balance Sheet or 'Point in Time' financial report
PlanJecting = Planning and projecting in around budgets.
Plastic = Credit or Debit Cards
Q & A = Questions and Answers
QBs =Quickbooks, not necessarily the the latest version
QVE = Quite Virtual Envelopes as used in personal finance acctg.
Schar = School Accounts Receivable.
Scrip = Type of fund raising
SetASide = GPFund assessments for future purposes
SPFunds = Special Purpose Funds; plural SPFs
TRUISMS = Ministry financial principles as set forth by Jim Bramer
VIDEO = Ministry Income Statements that cover a "Period of Time" of financial reporting.
The bulk of this Publication originated in January 2008 CONTACT: Brad Pendable at
Brad@rpfin.org
UPTD: December 10, 2009