More and more, America is becoming a cashless society. Noncash transactions, in the form of checks, credit cards, debit cards, and other electronic transactions, like ACH and wire transfers, continue to increase year over year. According to a recent study by the...
Signing a blank check is a fast and convenient way to allow an employee to make a purchase. However, signed, blank checks can be easily abused. Not only can the checks be written for more than the approved amounts, the checks can be used for entirely different...
In accounting circles, there is a lot of discussion about segregation of duties. This phrase may sound complex or technical, but segregating duties is simply the process of having more than one person involved in a task or process. We often talk about segregating...
Q: Our church wants to send our pastor to Hawaii for a sabbatical. If the board authorizes the trip for “rest and renewal,” can this be characterized as a business expense, or will it result in taxable income for the pastor? Can church members receive charitable...
Many churches want to help students in their congregation attend a college or university, so church leaders establish scholarship funds and seek donations from their congregations. While most donors expect to receive charitable giving credit for tax purposes,...
Q: Many of our ministry departments, such as the Women’s department, Men’s department, and Youth department have separate bank accounts. The financial activity of each department is managed solely by the department leader, while the church’s General Fund activity...
In most states, churches are exempt from paying sales tax. However, some states do not give this benefit to all nonprofits. In this particular case, the state has decided that a not-for-profit food pantry will not be exempt from paying sales tax. While the...
Q: Who should be check signers on the church checking account? A: There are a few key guidelines to keep in mind when determining who should sign church checks, what they should look for, and how many signatures should be required on the checks. Key...
Pastors spend countless hours preparing sermons, ministering to the needs of their congregations, and organizing the various programs of their churches. All of this valuable investment of time is made in an effort to realize the ministry goals established by the...