Church Accounting: The How To Guide for Small & Growing Churches

The best-selling, must-have reference for small and growing churches has been updated and expanded!

Learn what you need to know to manage the finances and keep your religious organization out of trouble with the IRS.

Topics include how to:

• Determine whether to file for a 501c3 or not
• Establish controls to keep the money safe and guard against errors
• Record and acknowledge donations of cash, stock, vehicles, in-kind, and more
• Setup and maintain a benevolence fund
• Calculate and file payroll
• Structure pastor payroll and housing allowances
• Budget for the next year
• Recognize if you owe Unrelated Business Income Tax (UBIT)
• How to fill out the 990N and 990EZ,
• And so much more.

Lisa London CPA is the author of The Accountant Beside You series of resources for the non-accountants in nonprofits, churches, and small businesses to understand their accounting needs. She has decades of experience in auditing and consulting large and small organizations.

Vickey Richardson is the founder and manager of Vickey's Bookkeeping, Inc., an accounting firm specializing in assisting churches. She is best known for her popular website, FreeChurchAccounting.com.

Contents

Churches and the IRS-Administrative Issues

IIRS definition of a church, basic steps for starting a church, by-laws, office organization, and how long to keep the accounting records.

Proper Procedures and Internal Accounting Controls

Establish strong internal controls with even the smallest staff with specific policies for money coming in and going out.

What is Special About Accounting for Churches?

Nonprofit accounting is different and how to set up your chart of accounts.

How do I Select an Accounting System?

Different types of accounting systems and how to decide which is best for your organization.

Contributions-- Receiving and Recording, Acknowledging, and Special Topics

Record donations, including specific controls for the various ways they are received. Discover how to acknowledge donations including Quid Pro Quo, non-cash, and vehicle donations. Also covers gifts to specific individuals, donated labor/services, in-kind contributions, discount donations, pass-throughs, and capital campaign contributions

Benevolence Policy

Set up a discretionary fund that keeps the donor's deductibility.

Paying the Bills and Reimbursement Policies

Establish controls on the money going out and design an accountable reimbursement policy.

Payroll--Basic Steps, Calculating & Filing, Part III: Ministers

How to calculate and file payroll, including special minister requirements and housing allowances.

Budgeting

Easy approach to planning and cash flow.

Month-End and Year Issues

Processes, reconciliations, reporting, and audit preparation

Unrelated Business Income Taxes (UBIT) Form 990N & 990EZ

Examples and line by line instructions

Appendix with sample chart of accounts, month-end checklist and list of IRS sites.