Why Churches choose to Outsource Accounting Services:
1. Expertise and Experience:
By engaging the services of a seasoned accountant, your church gains access to a professional who brings a wealth of experience to bolster the growth of your ministry. These experts ensure that your organization adheres to best practices and can offer guidance on intricate financial matters. Unlike internal bookkeepers and staff members who may have emotional attachments focus on ministry, an external accountant offers an impartial perspective and years of financial expertise, providing peace of mind to your ministry.
2. Financial Accuracy:
Whether your church is a local congregation or a sprawling multi-campus ministry, every donated dollar is a sacred trust. Maintaining precise and up-to-date records in line with generally accepted accounting principles (GAAP) is paramount. Employing an accountant significantly reduces the chances of missing deadlines or making costly errors.
3. Time Savings:
Every church leader yearns for more hours in a day. Outsourcing your own bookkeeping services eliminates spending valuable time worrying about financial tracking. Instead of worry, it enables you to focus on your ministry’s core mission, knowing that the financial aspect is in capable hands.
4. Cost Savings:
Due to budget constraints, many churches find it impractical to employ a full-time or even part-time bookkeeper. This often results in staff members juggling multiple job roles without the requisite expertise in church finances. Hiring an accountant provides access to higher-quality work at an affordable price, with customized packages designed to meet your church’s specific needs and schedule.
5. Enhanced Financial Processes:
Engaging an accountant empowers your church to streamline its financial processes and save time. While all churches necessitate regular financial statements, accountants can generate various reports that track purchases, sales, payroll, assets, liabilities, and other transactions within your church. Moreover, professionals bring cutting-edge online tools to your ministry, enabling you to actively participate in the process and access financial information around the clock.
6. Insurance Services:
In addition to accounting expertise, our professionals are well-versed in optimizing your employees’ health insurance coverage while safeguarding your financial bottom line. Our specialization in tax planning allows us to maximize health savings accounts, explore and manage high-deductible health plans, and implement accountable reimbursement plans.
Insurance expenses often represent a significant portion of a church’s budget, making decisions about insurance plans a source of stress for church leaders.
7. Preserving Church Assets:
Church assets encompass a range of items, from physical properties to designated funds, all requiring vigilant oversight. Ensuring that you and other churches have sufficient funds to cover rent or mortgage payments and other expenses is essential. Equally crucial is the accurate allocation and tracking of ministry donations earmarked for specific purposes.
A dedicated accountant working with your church eliminates money concerns when church treasurers or volunteers retire or move on. During transitional periods, such as finding a new bookkeeper or training volunteers to manage it, costly mistakes can accumulate. A dedicated accountant ensures that your ministry maintains stability and avoids financial disruptions.
9. Compliance and Tax Obligations:
While churches and ministries may operate as tax-exempt entities, they still encounter various accounting-related challenges. Payroll taxes, workers’ compensation, and excess benefit transactions require meticulous attention. An outsourced accountant helps you prepare for tax season and ensures that your tax returns are accurately filed, preventing costly tax penalties or IRS audits.
Church accounting services acts as a specialized method of financial management, affording church professionals such as yourself the unique advantage of gaining profound insights into your organization’s financial health. This deeper understanding equips you with the ability to craft strategic plans that not only fit within your financial constraints but also maximize the positive impact of your church’s mission and activities.
We earnestly recommend that churches, especially those of moderate size, engage in thoughtful deliberation when selecting the most suitable candidate to oversee their accounting functions. In the vast majority of scenarios, the path of outsourcing your accounting needs emerges as the most advantageous option. This approach opens the door to a wealth of expertise and experience, which are pivotal in fostering a robust and secure financial environment within your church.