Why Financial Documentation Is a “Must” for Your Ministry
Why Financial Documentation Is a “Must” for Your Ministry
Keeping track of paperwork and processes is vital for your church.

One saying that’s been used in our organization for years is “If it’s not documented, it’s not done.”

Documenting your processes and procedures is important for efficiency and effectiveness. From a risk-management standpoint, it is also imperative. Consider what would happen if your key financial person was suddenly out for three months—a realistic possibility that has affected many ministries in the past. Would your ministry be prepared to have someone step in and continue providing the same level of financial service without significant difficulty?

The Sarbanes-Oxley Act of 2002 is commonly thought to only impact for-profit companies. However, it contains two provisions that apply to all corporations, including nonprofits: (1) whistleblower policies and (2) document retention and destruction policies. This reflects the importance that should be placed on documentation—not only what you document, but how long you keep documentation and how you dispose of it when an appropriate amount of time has passed.

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Posted: June 16, 2016
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