Every type of organization should have a bookkeeper. Regardless of whether the organization is for-profit or nonprofit, they are completing transactions and need to be able to organize their income and expenses.
This can be for reporting purposes, such as to a board of directors, or for financial reasons, such as to know if what they are spending is exceeding what they are bringing in.
Although there are many benefits to using a bookkeeping service, today we will discuss six important ways your organization can benefit from it.
The Benefits of Outsourcing Your Bookkeeping
These six benefits will have you on the right track to having peace about your organization's finances.
1. Unbiased financial opinion: Having an external bookkeeper can do wonders for your ministry. Internal bookkeepers often get emotionally involved in the church or ministry. By hiring an outsourced bookkeeper, like the ones at StartCHURCH, you can receive crucial insight into your church's financial situation. It may be positive or negative insight, but either way, it is valuable information you'll need to make necessary adjustments and make decisions that will help your ministry grow.
2. Compliance benefits: Good records will help you monitor your church's progress, prepare your financial statements, identify sources of income, keep track of deductible expenses, keep track of your basis in the property, prepare your tax returns and support items reported on your tax returns. Compliance with nonprofit tax laws is a must. When it comes to paying income taxes, payroll taxes, workers' compensation and the like, your bookkeeper will prepare the right documentation and provide the forms needed to ensure that your organization is in perfect IRS compliance. You will have less stress about your bookkeeping records if you find yourself facing an IRS audit.
3. Accurate financial statements: Your bookkeeper understands accounting and knows how to prepare your financial reports. These documents contain information you need to record in your books. The reports include all purchases, sales, payroll, assets, liabilities and any other transactions you have in your church. Financial statements are recommended for every church, but since the format and frequency will vary based on your church's size, an experienced bookkeeper can prepare your financials using generally accepted accounting principles, otherwise known as GAAP.
With StartCHURCH bookkeeping, you will have the power of a ministry-focused bookkeeper who knows you, your ministry and your vision. Sharing your vision with your assigned bookkeeper will help them handle all of your accounting needs, from understanding basic accounting to the preparation of your monthly and yearly financial statement preparation. Give us a call at 833-609-5687 to learn more about our bookkeeping service or schedule a call with a bookkeeper by clicking the link below!
4. Curb tax liabilities: Without the proper training and experience, it's easy to improperly file federal tax returns, which can prove a costly tax liability for your church. The good news here is that with your 501(c)(3) status, your church is exempt from paying federal income taxes; however, other taxes may apply. From payroll taxes to excess benefit transactions, to failure to report taxable benefits, reasonable compensation, housing allowances, and more, tax laws are complex. They require experience to make tax compliance a priority. Bookkeepers know what to look for regarding your ministry or church's tax liabilities.
5. Protecting your financial assets: Your church's bookkeeper is responsible and accountable for all finances, reducing mistakes, oversights and even fraud as any misappropriation of church money will be immediately recognized. Your assets will be tracked and depreciated, reducing any book inflation.
6. Loan qualification: Whether you're expanding a new church ministry or planning for a church building, we all know that big dreams come with hefty price tags. Having a bookkeeper helps you maintain accountability and enables you to secure a loan or grant. To present a clear picture of your church's financial status and ensure the loaner can see exponential growth in your organization, your professionally prepared financial statements can look impressive to any lender considering your loan.
Take Back Your Calling in the New Year
Many leaders feel that handling the finances for their organization drains them. They have trouble tapping into that joy of fulfilling their calling to their organization as a leader. Our bookkeepers are trained and work daily in assisting nonprofit organizations with financial reports and guidance in best practices. Precision and accuracy do matter when it comes to your numbers. It's time to take back your calling and pass your books off to an expert so you can get back to leading your organization.
If you've been on edge about properly managing your church's finances, consider starting the new year off on the right foot by looking to StartCHURCH. Join us for our new bookkeeping webinar, How to be Financially Healthy After a Pandemic Year.
In this webinar, we will cover:
— Three strategies to have a financially healthy year.
— Seven tips you need to follow when planning your budget.
— More benefits of hiring an outsourced bookkeeper.
Plus, get these free benefits!
The 6 Steps to Strengthen Your Church's Financial Health e-book:
— Reimbursement request form.
—Offering count sheet.
—Financial gift thank-you letter.
—Accountable reimbursement policy.
—Tithe and offering collection policy.
We want to see you take your ministry's financial management to the next level in 2021. To sign up for one of our upcoming webinar dates, click the link below or give us a call at 833-609-5687 to learn more about our bookkeeping service.
Kristen Calicott is a bookkeeper at StartCHURCH. She compiles financial reports for pastors, and in turn, helps them make wise decisions for their organizations. Kristen loves knowing that she has helped ministry leaders spread their missions everywhere by keeping them informed of their financial situations.
For the original article, visit startchurch.com.
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