What is a Statement of Activity?
A Statement of Activity (also known as an Income Statement or Profit and Loss Statement) for a church is a financial report that shows the church’s income and expenses for a specific period of time,…
Financial Reports & Budgeting
It’s That Time of Year: Budget Season
As we approach Q4 of 2022 many churches have already begun the budgeting process. This can be quite daunting and time-consuming. Where do we begin? How do we budget for each category? How can we…
Accountability and Budgeting – “Budgeting” the Statement of Financial Position (Balance Sheet)
“Budgeting” the Statement of Financial Position (Balance Sheet) Now, for those bookkeepers and accountants who might be reading this, don’t panic. I know we don’t create a budget for the Statement of Financial Position (Balance…
Accountability and Budgeting – You Have A Budget, Now What?
You Have A Budget, Now What? Budgeting is such an important tool for so many reasons. In his book, Essential Guide to Church Finances, Richard Vargo lists 10 important reasons: Formalizes planning Reduces emotion-charged discussions…
Accountability and Budgeting – Operations Budget Process
Operations Budget Process As discussed in a previous blog, there are a variety of types of budgets that your church may need to develop. The Operations Budget is the forecast of your day to day…
Accountability and Budgeting – Accounting vs Accountability
Every organization has a limited amount of resources. Just like a family, a church must be aware and wise about how and when they spend their funds. Unfortunately, there will always be more need than…
Financial Dashboard
What is it? A dashboard is a financial reporting tool used for quick visual comparative analysis of key performance indicator data, often in the form of a series of side-by-side trend diagrams. Dashboards can distill…
The Statement of Financial Position (Balance Sheet)
The Statement of Financial Position (Balance Sheet)(and those Pesky Designated Accounts) What is it? This report is a listing of your “permanent” accounts: assets, liabilities and equity. It is a “snapshot” of the financial health…
Actual vs Budget Report
What is it? The Actual vs. Budget report is probably the most useful financial report for leadership to review on a consistent basis. On this report you will find the same information as reported on…
The Statement of Financial Activity (Profit & Loss)
What is it? The most fundamental report that church leadership will want to review on a consistent basis is the Statement of Financial Activity. Businesses refer to this report as the Profit & Loss Statement.…