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June 21, 2011

Show Me the Money

The most important financial report your church needs each month.

showmethemoney.jpg

Church board members are charged with fiscal oversight of the church coffers. But not every board member or finance committee member is a CPA and schooled in finance. Many treasurers and bookkeepers make the mistake of providing too much information and detail to board members. This only muddies the waters and leaves your committee members feeling less equipped to make good decisions. In order to get an accurate picture of the church's financial standing and make good decisions based on this information, your church board and finance committee need the right information presented in the right way.

The single-most important report you can bring into a finance meeting is the cash availability report.

showmethemoney.jpg

Church board members are charged with fiscal oversight of the church coffers. But not every board member or finance committee member is a CPA and schooled in finance. Many treasurers and bookkeepers make the mistake of providing too much information and detail to board members. This only muddies the waters and leaves your committee members feeling less equipped to make good decisions. In order to get an accurate picture of the church's financial standing and make good decisions based on this information, your church board and finance committee need the right information presented in the right way.

The single-most important report you can bring into a finance meeting is the cash availability report.

Related Tags: church budget, finance, finances, money, planning, tithes

Comments

Vonna, while I appreciate the importance of the available cash report, I have found in the church world that reporting available cash as you have calculated it simply leads to spending more money. Most pastors see "money available" as money to spend now. Major future expenses that need money set aside each month are robbed of funds under your calculation. Cash available can't be based upon only short term (current) issues.

This is an interesting point. The reason I believe this calculation is so important is that oftentimes board members will look at the cash balance on the balance sheet and make decisions from that information. That can lead to serious consequences. You could certainly modify the calculation I provided to include budgeting for future needs or title it something different.

Do you have an example of the church availability report for sale or disbursement?

Clinton--Our soon-to-be-released (early 2014) eBook on church financial reporting will include examples. Feel free to check back periodically at this site: http://store.churchlawtodaystore.com/ebook.html

Also, sign up for our free Church Law & Tax Group e-newsletters, which will announce this eBook's release, too: http://www.christianitytoday.com/myaccount/?page=newsletters

Blessings,

Matt

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