Show Me the Money
The most important financial report your church needs each month.

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.

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.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is published with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations

Comments

Displaying 1–4 of 4 comments

Matt

December 16, 2013  12:23pm

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

Report Abuse

Clinton Jenkins

December 11, 2013  6:21am

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

Report Abuse

Vonna

July 22, 2011  2:39pm

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.

Report Abuse

Barry Hines

July 22, 2011  1:37pm

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.

Report Abuse
Recent Posts
Subscribe to Church, Law & Tax

Resources

Safe Mentoring Relationships

Safe Mentoring Relationships

Examine risks involved in youth ministy and learn ways to safeguard your ministry.
Internal Controls for Church Finances

Internal Controls for Church Finances

Learn how to protect your church's money.