Newsletter and Updates from Orchard Group

Church Finance Considerations for This Season

Church Finance Considerations for This Season

By Robert Tomko, finance director

Three church finance considerations for our current moment:

1.) Maintain accurate and responsible records.

During this time, many of us will have fewer in-person connections with our accountant or bookkeeper. It’s important to ensure that our financial reports are produced with accuracy and integrity, even more so for churches applying for a CARES Act PPP Loan.

2.) Add a new monthly report.

Remember, “cash is king.” You should consider adding a cashflow report to your monthly financial review process. This will help you see exactly where your money is moving across all of your budget and non-budget lines. It is a better tool to track cash movements than a standard income statement.

3.) Create a contingency plan.

Have a contingency plan in place! If your giving goes down by 10%, what will you do? If your giving goes down by 25%, what additional steps will you take? It is prudent to think through next steps now so that when the unexpected happens, you have a plan in place. Further, your team will know what to expect and will not be caught off-guard due to unanticipated changes in revenue.

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Jamie Larson