So, are you receiving the right financial support and guidance?
Christmas time is a time for giving. As such, for many churches and not for profit organisations (NFPs), Christmas is a time when charitable donations and tithing increase. While this is fantastic news for those in the community that you can help, it’s also a great time to review how effectively those donations are being managed.
“So don’t begin to ‘build or do anything’ until you count the cost. Don’t you first sit down and figure out the cost so you’ll know if you can complete it? If you only get the foundation laid and then run out of money, you’re going to look pretty foolish . . .”. said Jesus, talking with a large group of people around him. Luke 14:28-30
Conducting the finances with best practice sounds simple enough. Yet so many of us could do better in this area. It’s not necessarily a case of negligence, it’s more to do with our focus. As a church or community leader our focus is always going to be on serving the Lord and the community. That’s a mammoth task that takes a lot of energy, especially during the holidays. So, it is understandable that many of us don’t want to spend a lot of time preoccupied with the finances.
This is especially true of organisations that are still tracking finances on paper or an old accounting system. These are hands-down the most time-consuming methods of all when it comes to managing the books. Also paper and spreadsheets are the most prone to error and misinterpretation. Important things are often overlooked. Not to mention things falling through the cracks each time you induct a new treasurer.
Poorly managed church or NFP finances can mean…
- You may struggle to maintain your facilities
- You may run late or behind on utility bills
- Money may be misused or misspent
- You can’t help everyone in need in your community
- You become embroiled in costly and stressful battles with the ATO
To avoid these pitfalls, you need…
- A budget including all income and expenses
- Accurate, thorough bookkeeping and receipt storage
- Clearly defined financial policies and procedures
- A quick, easy way to generate reports – meaningful and easy to use reports
- A system that’s easy for any treasurer to follow – including the new treasurer starting in 2022
That’s why so many churches and NFPs come to Benkorp for assistance. Benkorp specialises in bookkeeping and accounting for churches and NFPs. As such, the team has expert insight into the unique needs of churches and NFPs and the ATO rules surrounding churches and NFPs. There are best practice methods for receiving the giving and there are best practice processes to manage payments efficiently.
Benkorp offers thorough and accurate bookkeeping services that won’t let anything slip through the cracks. That means potential problems are identified and avoided so you don’t have issues with the ATO or money mismanagement.
It also means that your treasurer (almost always a volunteer) doesn’t have to dedicate so much time to difficult paperwork. When Benkorp sets up Xero accounting for you, they can also provide training and support to your volunteers or staff. This can make any handovers to new treasurers so much easier too.
Benkorp’s services are very affordable. They offer a range of options to suit your needs, so for example, Benkorp can take care of some or all the bookkeeping – it’s up to you. The time, money, and hassle Benkorp can save you allows you and your volunteers to focus more on your mission and achieve more with the tithing and donations you receive.
Do any of these points strike a chord for you?
Does your church or NFP need assistance in responding to the donor giving?
Are you looking for best practice methods to receive donations or processes to manage spending?
If any of these points resonate with you please contact the team at Benkorp now to discuss your situation and consider how Benkorp can assist you Email [email protected] or book a call with one of our team!