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 … [Read more...]
Creating The Annual Budget
The Annual Process Of Developing The Budget, Along With A Few Pointers
As an Executive Pastor, one of the things I could never avoid was doing the budget for the church each year. The budget was due to the eldership in early December, and it took a bunch of work to get it together. I typically started working on it in mid to late September. I wanted to share the process I went through each year and a few pointers. I’ll assume your church uses QuickBooks or some other application that … [Read more...]
How Much Is Enough When It Comes To Cash Reserves?
Determining The Amount Of Reserve Cash To Keep On Hand In The Church
I've been asked more than once over the years ... "How much does your church keep in reserve?" My answer? "It depends." I haven’t come across a “standard” for cash reserves that works for everyone. As church leaders, we know that having a reserve is good, but we’re not in the money-saving business. We’re in the money-spending business (for the good of the Kingdom, of course). We have to spend money to accomplish … [Read more...]
Help With The Annual Budget
A List Of Executive Pastor Online Budgeting Resources
I hear it all the time, "Sunday comes with amazing regularity, every 7 days." As an executive pastor, I would say that financial planning comes with amazing regularity. Knowing that many of you are now working on your church's 2022 budget, I thought I would post a list of Executive Pastor Online resources that will help you get it done. Take a look ... Developing An Income Model Creating A Chart Of … [Read more...]