B&J Bookkeeping is a community leader in helping all sorts of businesses and individuals with their bookkeeping. However, many don’t think they qualify as a “traditional business,” especially those in the non-profit sector. One of the areas we see that needs the most help is churches. As a result, below we will share all about bookkeeping services for churches.
1. Why Do Churches Need Bookkeeping?
Just go to any map or search engine and you will find that Houston has hundreds of churches, synagogues, and other houses of worship. In fact, Houston is home to 37 megachurches alone. And from Joel Osteen’s Lakewood Church to the small one on the corner, they all have money coming in and out. It is essential for you to keep accurate books to the penny, not just because it’s the right thing to do, but because your church goers want to know their hard-earned, donated funds are going to the best use possible.
2. Bookkeeping is Complicated
Church bookkeeping is full of complexities, just as it is for business. You must perform many tasks, follow laws, fill out forms, and perform correct calculations. This goes for the owner of the church as well as its treasurer, human resources professional, or whoever is in charge of managing the church’s finances. Unfortunately, mistakes do happen, as does dishonest practices inside and outside of the church.
3. You Still Have to File Taxes
Under federal law, churches need to file a yearly tax return with the IRS if they have Section 501(c)(3) status. Other churches outside this status most likely also have to file regular taxes. Churches considered as a non-profit may file one of several Form 990’s depending on your gross receipts and deductions. You may also have to fill out any or all of Schedules A thru O, or R, depending on your type of organization. However, churches are exempt from federal taxes in most cases. However, some non-profit activities may be designated as taxable income.
4. Which Bookkeeping Services Does My Church Need?
First of all, each church is different in size, amount of revenue raised, and many other factors. However, many common bookkeeping services for churches include:
- Account set up and review.
- Up to the minute accounting/bookkeeping information.
- Payroll services and auditing.
- Bank and other account reconciliation.
- Regular financial statements with details on income and expenditures.
- Tax preparation for Form 990, 1099’s, and others as needed.
- Audit preparation.
5. How to Find a Bookkeeper for Your Church
Be sure to do your research when searching for a potential bookkeeper. You want one in your area who has a brick and mortar operation you can visit. You may turn to your congregation for help, but we don’t recommend that being the only criteria. Read online reviews and any complaints to narrow down your search. Once you have chosen a few be sure to ask the right questions. These include: how long have you been in business? How many churches do you serve now or in the past? Have you performed tax preparation services for churches and/or non-profits? These answers can help you choose the best match for you.
Bookkeeping Services for Churches in Houston
Those of you with a church or other house of worship located in or around Houston are free to contact us. We can help you learn more on how we can provide expert and accurate bookkeeping for your church.
