Outsourcing Accounting and Financial Functions

Outsourcing accounting and financial functions remains a hot topic for churches.

And we understand why.

As churches confront tighter budgets in the face of complex IRS guidelines governing religious not-for-profits, the need for outsourcing accounting and financial functions for bookkeeping support, compliance, and basic tax literacy is paramount.

Whether it’s understanding the ever-changing dynamics of the church treasurer role, to making a wise choice in third-party software, the below resources will go a long way in asking—and answering—questions you may not have known to ask.

As XPastor founder and longtime Church Law & Tax Advisor-At-Large David Fletcher suggests, cost, banking data security, and savings all come into play when considering whether to send accounting and financial services to a third-party.

Senior Editorial Advisor Mike Batts explains that outsourcing can be an effective way of bringing costs in line with reality.

This is especially true when coupled with a zero-based budgeting approach. Batts outlines how in in chapter 1 of Church Finance: The Church Leader’s Guide to Financial Operations.

Meanwhile, outsourcing your church’s specific accounting work begins with a sound understanding of the accounting role within your church.

Choosing the right accounting software can be—and probably is—every bit as important as answering whether to outsource your accounting function.

Though there are no perfect solutions, there are many important considerations, as Glenn Wood at SeaCoast Church in Charleston, South Carolina, explains.

Sometimes churches need to quickly hire a CPA, either because of unforeseen circumstances or a shift in roles. These six, timeless tips will help inform that crucial hiring decision.