How Long Should We Keep Church Records?

Take care to restrict this information to those authorized to deal with such information. Digital records should be retained on the same schedule as paper records. If minutes are a permanent record of the church, church accounting then minutes created electronically are also a permanent record of the church and a plan should be created to retain them. Despite the importance of transparency, few churches promote it through financial reporting. According to BusinessingMag, 92% of churches create financial reports, but very few share them with their congregation.

Schedule Regular Audits

Continue monitoring your budget by comparing the actual and expected outcomes of your financial activities. You should also consider KPIs like return on investment and rate of return. Choose the system that is best for you based on your church size and financial goals. You may also consult an accountant to determine which is most suited to your needs. This video provides more guidance on how to set up a chart of accounts. These systems often provide secure offsite storage, protecting the data from potential threats like cyber hacks, fires, or floods.

What is Fund Accounting?

Your ministry does not necessarily need to retain every document that comes your way, but this is an area where the saying “Better to be safe than sorry” applies. The smart strategy when it comes to your church record-keeping is to determine what you need to keep. Then devise an organized way to file and maintain the records so they are easily accessible down the road. At our church (New Life Fellowship, in Cambridge, Ontario), as with many I’m sure, we have a combination of physical and electronic records, depending on the nature of the document. Having one or another, or both, isn’t good or bad, so long as your church has a policy in place (see above).

• This is something you should confirm for your state so you understand what you need to keep.
• Here are some other best practices to keep in mind to ensure a smooth church accounting process.
• Regular expenses, such as utility bills and staff salaries, need to be closely monitored and recorded on an ongoing basis.
• Financial record-keeping is an important part of running a successful church.
• The good news is that there are several ways you can make this task more manageable.
• Typically, finances are reviewed monthly for reconciling purposes.

How Long Should We Keep Church Records?

Exercise care to limit access to the computer-based material to responsible church members. This might include the pastor, church secretary, financial secretary and membership chairman, limited by password access. In-house systems require that regular backups of church data be kept in a secure off-site location. If you run a church, this is an important part of ensuring the church meets state and federal legal requirements.

• This can be difficult if you have members paying in person and in cash.
• There are also temporarily restricted funds with donor-imposed restrictions that determine how money is used in the future.
• Save yourself some headaches by setting up an easy to use and clearly labeled file structure.
• A record-keeping policy should include directions on how to dispose of records properly to maintain the confidentiality of sensitive information.
• Fund accounting also helps churches keep an eye on restricted funds since all resources are categorized and allocated accordingly.
• Exercise care to limit access to the computer-based material to responsible church members.

• These records also include employee expense reports and personal records after employment separation.
• In addition to recording the income, it is essential to keep track of any expenses related to fundraising activities.
• Look for platforms that integrate with church management systems and online giving programs.
• This requires that someone act as the church secretary, on a paid or volunteer basis.
• Take the time to research and select a software solution that best suits your church’s needs.
• If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

It is a good idea to make digital records of your physical records just to be safe. If you are using online giving software, you already have a variety of digital records. If you have a secretary, this can be the perfect time for them to update everyone. This keeps everyone on the same page and helps them understand the church’s accounting processes. You also need to keep property records and tax exemption documents. These are very important legal documents that you may Certified Bookkeeper need at some point.

Types of Records That Should Be Retained

Now that you know how to keep church financial records, how do you make this easier? The good news is that there are several ways you can make this task more manageable. It is important to have a financial records organization when you have so many documents. retained earnings Take the time to do your research so that you make the best decision for your church. We’ve done the legwork to help you choose the ‘just right’ church management software. Use calendar reminders and alerts to prompt staff and volunteers to update records.