Accounting for Churches

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There are several important differences between accounting for nonprofit organizations (such as churches) and business accounting. One of the main differences is how income and expenses are recognized and recorded. Congregations usually work on a cash basis. This means income is recognized and recorded when the money is received. Expenses are recognized and recorded when the money is spent.

Congregations tend to use “cash accounting” because it is much simpler. This method makes it easier for the treasurer to track the money going into and coming out of one or more bank accounts, and it’s easier to explain to the congregation. Shepherd’s Staff is designed for churches utilizing cash accounting or fund accounting.

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