THE Church Accounting Guide for your growing church!
Accounting for churches is not the same as accounting for businesses. A church bookkeeper must be aware of the special tax codes that govern the church's unique tax standing. But it's often hard for overworked or volunteer administrators to know every aspect of tax code that affects their church's ability to accept donations, oversee a benevolence fund, file church payroll, and offer a compensation package for their minister.
Lisa London, The Accountant Beside You who brought you QuickBooks for Churches & QuickBooks for Nonprofits, explains the specialized needs of church accounting in an easy-to-understand manner for church administrators and volunteers. A CPA with decades of experience working with businesses as well as churches and other nonprofits, Lisa explains complex concepts in a reader-friendly, engaging manner. She is joined by Vickey Boatright, an accountant who runs THE online site for free church accounting, www.freechurchaccounting.com. Together, Lisa and Vickey guide you through every essential aspect of church bookkeeping, including the specifics of small church accounting. Joining them is Terressa Pierce of freechurchforms.com as she steps the reader through how to organize the church office.
Church Accounting: The How-To Guide for Small & Growing Churches is a must-have reference for all the nuts and bolts of church accounting no matter what your accounting system. Lisa and Vickey help you set up accounting spreadsheets and explain the different types of accounting packages. If you are already using QuickBooks, it's also a perfect compliment to QuickBooks for Churches and Other Religious Organizations.
Additionally, The Accountant Beside You will show you how to:
- calculate and file employee payroll without paying for an outside service,
- design and implement a compensation package for your minister, including a housing allowance,
- set up and administer a benevolence fund,
- track church contributions,
- acknowledge donations per IRS guidelines, including vehicle donations,
- prepare for an annual audit,
- budget and forecast to provide for future church growth,
- reimburse employees' expenses per IRS guidelines,
- set up proper internal controls to guard against fraud or error, and
- implement the basic steps of starting a church.
The Accountant Beside You series of accounting books for churches and nonprofits have been sold in all 50 states and every inhabitable continent. Besides the detailed, step-by-step instructions provided in the guides, both e-book and print, Lisa London offers supplemental and often free information online at www.accountantbesideyou.com and through her popular YouTube videos and webinars. Church accounting will be less worrisome with The Accountant Beside You every step of the way.
Shipping costs are a flat rate of $3.95 for media mail or $7.95 for 2-3 day USPS Priority Mail, no matter how many books you purchase. E-Books have no shipping costs and are available for immediate download.
ISNI 0000 0004 5059 7909 Lisa London, Author
Table of Contents
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I. Proper Procedures and Internal Accounting Controls
A. The Need for Strong Internal Controls V. Contributions—Part II: Acknowledging VII. Benevolence Fund VIII. Paying the Bills IX. Reimbursement Policies and Procedures |
X. Payroll—Part I: Basic Steps XI. Payroll—Part II: Calculating & Filing |
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Index B C |
J job-related expenses 131, 133 job-related reimbursements 135 journal entry 24, 105 L labels 169, 170 leftover funds 86, 87 legal counsel 73 legally-binding 168 liabilities 19, 20, 21, 23, 25, 151 licensed minister 117 living expenses 132 love offerings 116, 125 M materially improve 57, 176 mileage rates 82 mileage reimbursement form 84 minister 130 compensation package 131 definition of 116 exemption for self-employment 126 income to be reported 124 love offering 125, 135 minister's business expenses 125 ministers payroll 116 retired ministers' housing 124 self-employment taxes quarterly 127 tax filings for ministers 126 W-2 for the minister 127 modified cash method 20 modified fund accounting 15 money received during services 5 money received through the mail 6 month-end financial requirements 147 month-end checklist 156, 183 monthly processes 147 N naming the accounts 22, 23 national disaster 67 net assets 16, 19, 151 non-cash contributions 50, 61,163 disagreement with the estimate of the donation 50 non-consumables 81 non-deductible amount 46 non-deductible gift 61 non-publicly traded stock 52 non-reimbursed expenses 116 nondeductible contribution 60 O off-the-shelf accounting software 32, 74 online accounting packages 32 ordained minister 117, 126 organize 83, 166, 169 P parsonage allowance (see: housing allowance) pass-through 59, 64 pastor-administered discretionary fund paypal 6, 7, 40 payroll calculating 100 Circular E 91, 100, 105 filing 100, 111 ministers 116 payroll records 99 payroll tax 105, 106, 108, 111, 164 payroll tax deposits 106 tax filings 108, 126 tax table method 100, 115 year-end filings 112 penalties 1, 58, 87, 106, 127, 137 per diem 87, 113 percentage method 100, 101 permanently restricted net assets 17 petty cash fund 11, 12, 70, 76 petty cash replenishment 76 Pierce, Terressa 167, 168, 169, 171 postdated check 36 postmarked contribution 39 private benefit regulations 135 private inurement regulations 135, 137 procedures 1, 2, 8, 12, 35, 65, 68, 77, 165, 167 purchases 9, 48, 49, 50, 146 Q quarterly tax return 108 Quickbooks® 20, 22, 27, 28, 32, 73, 74, 143, 151, 153, 156 Quickbooks® for Churches & Other Religious Organizations 22, 28, 74 quid pro quo donations 45, 46 R ramifications of not policy 87 receivables-tithing 155, 164 record retention 166, 171 reimbursement policy 78 reimbursement policy resolution 79 related party transactions 3 replenishing the petty cash fund 77 reporting differences 25 reports accounts receivable report 155 balance sheet 25, 151, 163 profit & loss comparison to budget 154 profit & loss statement 25, 29 statement of activities 25 statement of financial position 25, 28 resolutions 6, 78, 79, 86, 119, 121, 122, 178 restricted funds 15, 17, 25, 171 retired ministers 116, 124 S sales tax 163, 167 sales tax exemption 167 scams 71 scanner 5, 6, 39 schedule c 81, 117, 129 schedule se (see: minister) selecting an accounting package 29 self-employment taxes 90, 116, 117 separation of duties 2, 4, 35 SFAS (Statement of Financial Accounting Standards) 16 software 27, 32, 34 sold donated vehicles 56 spreadsheet package 32 spreadsheets 29, 34, 86 state website list 187 start a new church 166 statement of activities 25 stock donations 44 T tax exempt status 135, 137, 141 taxable wages 90, 99, 101, 102 taxpayer identification number 56, 57, 96 temporarily restricted net asset 15, 17 terminology 20, 27, 70, 89 timesheets 14 timing of contributions 44, 86, 140, 148 title 73, 77, 79, 114, 123, 157, 161 transfer stock 44 transmittal forms 91, 112, 161 transposition 150 two percent floor 125 U un-reimbursed expenses 61, 118 unemployment taxes 90, 106 unrealized gain or loss 151 unreimbursed employee 62, 125 V vehicles donated 54, 55, 56, 57 vendor invoices 9 volunteer mileage 85 volunteer tracking 32 volunteers travel advances 86 voucher-style check 10 W waivers 72 web addresses for irs forms 184 web addresses for state departments 187 website donations 40 withholding 89, 90, 98, 100 withholding allowances 98, 100, 101 www.accountantbesideyou.com 28, 86, 92, 163, 173 www.ftc.gov 72 www.gsa.gov 87 www.irs.gov 82, 96, 108, 127, 130 Y year-end donor acknowledgments 157, 162, 165 year-end filings for ministers 129 |