That We Love to Fix!
At MinistryCFO, we look at these poor business practices as opportunities. Our mission is to help churches. There really is no denying that we regularly see these less than desirable business practices, which we often remedy at the start of the engagement with our clients:
1. Too Many Checking Accounts
You don’t have to have a separate checking account for each one of your designated fund accounts. As a matter of fact, with the right accounting architecture, you should be capable of retaining the cash in all of your designated fund accounts in one checking account.
Incidentally, fewer checking accounts will save on bookkeeping time.
2. Too Many Designated Fund Accounts
In our opinion, a church should have no more than two designated fund accounts. Each additional designated fund account creates exponential complexity. At MinistryCFO, we are experts in helping you get your designated fund accounts consolidated and thus manageable.
Again, fewer Designated Funds saves on bookkeeping time.
3. Too Many Expense Accounts
The more bookkeepers a church has had in the past, the more expense accounts we tend to see. That’s because when the next bookkeeper doesn’t know where to record a transaction, he or she will create a new account. As a result, we often inherit expense reports that run many, many pages long.
Again, fewer expense accounts saves on bookkeeping time.
4. Unrecorded Fixed Assets
Fixed assets include land, buildings, renovations, automobiles, and office equipment. The recording of these transactions is often complex and beyond the understanding and scope of a bookkeeper. As such, bookkeepers tend to record these transactions in the Profit & Loss Statement, when, in fact, most of these transactions belong in the Balance Sheet.
5. Profit & Loss Statements Lacking Departmental Breakdown
Remember #3 above, where the expense reports run for pages on end? In addition, we often find Profit & Loss Statements lacking proper departmental breakdowns. As such, we strongly recommend that our clients establish Departments within their Profit & Loss Statement. This way, each staff leader within the church becomes instantly accountable for his or her monthly spending.