The Advantages of Using Church Bookkeeping Software
Posted by: Brad
Tags: bookkeeping programs for churches, church bookkeeping, church bookkeeping software
Almost every business or organization requires some kind of software accounting program to help them keep track of their financial activities. However, churches and other non-profit organizations usually have some specialized needs and requirements, which can be most easily met by using software that is specifically designed for this purpose. Church bookkeeping software can help churches keep track of their donations, tithes, fundraising efforts and other financial activities. This software also makes it easy for churches to provide their members with a statement at the end of the year, summarizing their donations, so that they can use this information when filing their taxes.
There are a number of reasons why using software specifically designed for churches is preferable to other kinds of bookkeeping packages. Church accounting has many differences when compared to the accounting needs of a for-profit business. A package must be able to adequately handle “fund accounting,” which is something that most business accounting packages do not handle, at least easily. It is also important to select a package that will provide a good accounting audit trail. Although some packages may make it easy to move money between the various accounts, this can make it difficult to keep proper records, and can cause auditing difficulties. Good financial records can be important to a church, especially if the time comes when you need to apply for a loan or borrow money from the bank for any reason.
These software packages are also very useful for other purposes besides income and expense accounting. Church accounting packages often include features that allow the tracking of actual donations against pledges that were made. These packages can also be used to help keep track of different kinds of funds, such as segregating and tracking designated and non-designated funds separately.
Many church bookkeeping packages also offer features that allow membership tracking, such as keeping track of Sunday school attendance. Features that allow the entry of church member names, address, phone numbers, e-mail addresses and other kinds of contact information make it easy to do mailings and other kinds of communication campaigns. It can also be helpful for tracking any training programs, or member participation in specific groups or ministries. The ability to keep better track of membership can greatly streamline many church processes, saving time, effort and money. By using these packages, you will have the peace of mind of knowing that your church’s finances and membership information are both in good order.