Churches need accountants, too. They need to protect their tax-exempt status, file taxes, get financing for projects and charitable initiatives, keep track of incoming funds, pay workers and stay compliant with government regulations. Even though they are tax-exempt, faith-based organizations still have financial and regulatory obligations to meet.
So churches and any faith-based organizations should also consider outsourcing accounting to an experienced accountant. Still not sure? Here are main five reasons why every church should look at outsourcing their accounting.
Every church leader wishes they had more time in the day. Do not spend valuable hours worrying about tracking finances. An outsourced bookkeeper means you can focus on what you are called for, the day-to-day work of ministry!
Accuracy and expertise
These are critical for good financial health in any church. Having a trained and qualified bookkeeper means having an expert who knows the right way to make entries, understands and complies with local and federal requirements, and ensures your reporting is accurate.
Protect Church Assets
Church assets can vary from the physical property to designated funds, but all of them need careful monitoring. You need to be able to make sure you have money to pay rent or mortgage (as well as other expenses) and ensure that any ministry giving that is earmarked for a specific purpose is allocated correctly and tracked.
This is a key area where churches are at risk. Having someone outside of the financial system reconciling your bank accounts, tracking, and verifying your deposits and checks means there is a second set of eyes going over all of your systems, increasing the safeguarding of your congregation’s resources.
Churches and ministries may operate as tax-exempt entities, but that does not preclude them from a variety of issues that accountants handle. Payroll taxes, workers’ compensation, and excess benefit transactions all require careful attention. An outsourced accountant will help you prepare for tax season and make sure your tax returns do not lead to a costly tax penalty or IRS audit.
Choose the Right Outsourcing Provider for Your Church
JCSN CORP offers several options to help churches with exactly what they need from managing their financial system to coming alongside and helping the one that is in place. Our Ministry and Churches Accounting & Bookkeeping Services You can contact us to have one customized for your congregation.