A fundamental first step in completing a financial plan is creating a Chart Of Accounts. I’ve had more than a few conversations with church leaders on this topic.
In my experience, reporting is the primary thing to consider when creating a Chart Of Accounts. I’ve run into more than a few financial types who want to break everything down into its category and subcategory to the point of uselessness. Those in the organization having to choose an account for their expenditure begin to wonder, “What’s the point?”
So, think in terms of reporting. What will you be required to submit to whomever you present the church’s financial performance? Keep it simple. For example, suppose it’s unnecessary to separate lawn mowing from weed pulling or some other form of site maintenance. In that case, you only need a site maintenance account, not a lawn mowing sub-account or weed-pulling sub-account.
Over the years, we’ve tweaked ours a bit, but it has worked well for us overall. Download a PDF version of it HERE.