Jump directly to the Content

4 Expense Ratios and Measurements Your Church Should Monitor

These key calculations will help you measure the financial costs of doing ministry.

4 Expense Ratios and Measurements Your Church Should Monitor

Does your church track its expense ratios? This can help you identify key trends in the outflow of resources between years. It also provides the opportunity to compare with other churches and check the reasonableness of your expenses. These ratios represent important indicators every church should understand.

1. Personnel and Mandatory Debt Service Payments to Total Expenses (Excluding Depreciation Expenses)

The ratio of “Personnel (Salaries + Benefits)+ Mandatory Debt Service Payments(Principal + Interest Expense)” to “Total Expenses - Depreciation Expense

The largest expense on the financial statements of most churches is salaries and benefits. This is understandable, as a church is not in the business of selling products or manufacturing items. It provides services performed by individuals, paid and volunteer. Debt service payments—which are a reduction of ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • October 1, 2015

Related ResourcesVisit Store

How Churches Spend Their Money: 2019 Executive Report
How Churches Spend Their Money: 2019 Executive Report
This report will give you an inside look at how churches nationwide spend their money.
Church Finance
Church Finance
Learn about budgeting, financial reporting, tax compliance, insurance coverage, and more.
12 Steps for Sound Ministry Budgeting
12 Steps for Sound Ministry Budgeting
The steps to better plan, organize and allocate your organization’s financial resources
2021 Church & Clergy Tax Guide (Book)
2021 Church & Clergy Tax Guide (Book)
The most comprehensive and authoritative tax guide available.