A lot of people grow up going to church, synagogue, the mosque, you name it. Religion can often be a foundation for your belief system and ethical code. While the church may seem like a place you go to get inspiration and peace from on Sunday mornings, there’s a lot of work happening behind the scenes to bring you a meaningful experience.
Even though churches are qualified differently than businesses, they still have basic operating needs. You still have to keep the lights on and the bathrooms working and the staff paid, etc. There’s nuance to the business of churches, and this can often require outside help. Laws have been written specifically to aid churches within the structure of our government. And once you reach a certain size, these may be hard to navigate alone. This is when the aid of a certified public accountant (CPA) is necessary.
CPAs understand the ins and outs of accounting and bookkeeping and can help you keep up with the needs of your church. Asking for outside help allows you to focus on the needs of your congregation rather than spending excessive time on paperwork. If you still need convincing, read along for four simple reasons why hiring a CPA is right for your church.
1. Rules are different for churches.
Churches operate as businesses, but with different rules than businesses like Walmart or Starbucks. First and foremost, churches qualify as religious organizations and therefore do not own the government any money in income taxes, property taxes, and they can collect tax-exempt donations. There has been much debate over these rules, but that is a discussion for another day.
Because churches operate with different rules, forms, and tax codes, chances are a church volunteer won’t be familiar with all the specifics. A CPA has experience working with the bookkeeping of all different venues. They go to school to understand how all of these codes and rules apply to church organizations. The rules for finances are different for churches, so having a professional who can handle these more complicated aspects is advisable.
2. CPAs maintain accountability.
Operating budgets for bigger churches can reach large amounts, sometimes over a million dollars. Without specific training, there’s a chance you could bungle something and end up filing wrong or missing an important step with payroll. Keeping a CPA maintains accountability and lowers your liability for tax fraud or costly mistakes.
While your in-house bookkeeper may have the basics under control, professionals bring years of experience in organization and guaranteeing nothing gets skipped over or missed. Think of an office with custom folders for all the important details. Accountants have mastered the art of business cards, templates, marketing materials, and pocket folders all so they can help assist you with your needs in a professional, organized, and stylish way. Trust the experts and trust their tools.
3. Help your church grow.
The goal of many churches is to gain followers. Growth should be a top priority. And as your congregation grows, your financial responsibilities do as well. Expanding will mean more donations, a bigger payroll, and extended events. These are things to celebrate and focus on rather than worry about how a greater income affects your bookkeeping. A CPA can give you the tools to grow and take care of the expanding financial situation when it arises. That will leave the pastors and staff to focus on the new people in the seats rather than stressing over numbers.
4. It can be too much for just a volunteer.
Churches rely heavily on volunteers. Deacons, elders, and members of the congregation are often asked to serve on teams to help with everything from maintenance to event planning to financial records to helping find the best clearance clergy robes. While people are often eager to donate their time and talents to their church, some jobs are too much responsibility for a volunteer. Churches have business needs and a qualified CPA should be responsible for making sure those are taken care of.
