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, usually a month or a year. The statement of activity provides a summary of the church’s financial performance, showing how much money was received, how much was spent, and what the net income or loss was for the period.
A typical Statement of Activity for a church will include the following categories:
- Income: This section will list all the sources of income for the church, such as tithes, offerings, donations, and grants.
- Expenses: This section will list all the expenses incurred by the church, such as salaries, rent or mortgage payments, utilities, supplies, and outreach or mission expenses.
- Net Income or Loss: This section will show the difference between the income and expenses for the period, resulting in either a net income or a net loss.
The Statement of Activity is an important tool for church leaders and members to understand the financial health of the church and make informed decisions about budgeting and spending. It can also be used to communicate with donors and supporters about the impact of their contributions and the financial needs of the church.
When was the last time your church had an up-to-date and accurate Statement of Activity at your stewardship meeting? What would it mean for your church to have this information monthly? Contact us to find out more about the virtual bookkeeping services we provide for clients all over the country including monthly financial reports.