This book explains the process to follow when selecting small church accounting software. It includes guidance on:
- How to assemble a software selection team
- Perform a needs assessment
- Review and evaluate the package
- Select and implement the system
One of the issues that make the search for software so tricky is the inherent complexity of fund accounting. I have included a discussion of the mechanics of fund accounting in the book.
This information is invaluable for ministers, church treasurers, financial secretaries, and the entire church finance committee. It targets small to medium-sized churches with less than ten staff members.
Keep a copy of it in the church office so that you can refer to it when those accounting and tax questions arise (and you know they do).
This question and answer book address the following church accounting topics:
- Classification of ministers, employees, and contractors
- Minister’s housing allowance
- Minister’s self-employment tax
- Employee expense reimbursements
- Church employee benefits
- Structuring minister’s compensation package
- Withholding and paying church payroll taxes
- Preparation of Forms 941, W-2, and W-3
- Preparation of Forms 1099 and 1096
- Tax-exempt status for churches
- Church contribution records and year-end statements
- Preparation of monthly church treasurer’s reports
Small Church accounting can be an intimidating task. However, armed with the proper information, church accounting can be a source of stability and blessing within your church.
It is clear from Jesus’ teaching that he intends Christians to obey national laws. Therefore, churches need to comply with the United States Internal Revenue Code while providing the maximum tax benefits to their ministers and employees. Church accounting is not easy. It is different from business accounting in several key areas.
This site also contains free information regarding church accounting software and fund accounting.