Outsourcing your Church Bookkeeping & Accounting Function
The church treasurer is the critical person responsible to the church for it’s financial management.
Overall the Wardens, Deacons, Parish Council or management committee that is responsible for the financial management of its church, however the treasurer is responsible to these groups to provide accurate & timely financial information and assurance that the church has complied with all it’s tax and other obligations.
The treasurer’s responsibility is large and often under appreciated! Congregation members rarely have an understanding of all the facets and tasks involved in managing church finances.
At a minimum, the treasurer’s role is responsible to ensure that:
- an effective budget is in place (see previous article on developing an effective church budget),
- financial policies and procedures are in place and are adhered to,
- Income is collected & banked (donations, offerings, rent, funds, ministry activities fees etc etc),
- Bills are paid after proper approvals and documentation gathered,
- All the above transactions & information are entered correctly into the accounting system,
- Bank & other accounts are properly reconciled
- Accurate & understandable Financial Reports are presented at various leaders meeting,
- The auditors agree that the reports and processes are correct,
- Employees are paid properly and the FairWork is complied with,
- the church complies with it’s ATO responsibilities,
- there is adequate insurance in place
- The list goes on!!
The Problem is:
Often the treasurer is too “time-poor” to perform the role effectively.
Often this role is a voluntary position. The treasurer has a full-time profession and is too time poor to perform the role effectively. Thereby putting the church at potential significant risk
It is hard to find someone to do the treasurer job
The skill set required to do the job properly is very broad. Some tasks involve detailed data entry and others require high level Tax compliance and financial analysis.
It is hard to find someone with sufficient skills, time, desire to take on the job.
Often, willing under skilled volunteers are given the job – but this can result in errors and more trouble & risk
The compliance demands are growing and it is critical that the job is done properly!!
There are many Benefits of outsourcing the church Bookkeeping & Accounting Function with an experienced firm
- Takes away the detailed work & burden so that the treasurer can focus on more effective management
- Easier to find people to fulfil the treasurer role as the detailed work is done and processes are in place
- No need to develop procedures – these are already developed and proven
- Critical Compliance work is dealt with
- No need to continually learn new compliance requirements
- Reliable & structured environment is in place
- Accurate, pre-determined Financial Reports are provided at the agreed time
- They can prepare the accounts for and liaise with Auditors
- Training can be provided
- Additional advice & support is available
- Long term consistency in the accounts regardless of the particular treasurer availability
- No replacement & re-training of staff – If the work is done inhouse.
- No downtime for sickness & holidays
Benkorp has been helping churches with their financial management for over 25 years.
Benkorp has been providing bookkeeping and accounting services for churches since 2012
Please see more details about Benkorp’s Bookkeeping & Accounting services: http://www.benkorp.com/churches/bookkeeping/
Please contact us if you would like to discuss outsourcing your church bookkeeping services or anything else to do with the financial management of your church at [email protected] or 1300 138 627
© Benkorp Management Services Pty Ltd 2018