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Home Finance Creating A Chart Of Accounts

Creating A Chart Of Accounts

Creating The "Backbone" Of The Church's Financial Infrastructure

September 28, 2021

Chart Of Accounts Post

A fundamental first step in completing a financial plan is the creation of a Chart Of Accounts. I’ve had more than a few conversations with church leaders on this topic.

In my experience, the primary thing to consider when creating a Chart Of Accounts is reporting. 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, all you need is a site maintenance account, not a lawn mowing sub-account and a weed pulling sub-account. Make sense?

Over the years, we’ve tweaked ours a bit, but it has worked well for us overall. Download a PDF version of it HERE.

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