<h2 style="text-align: start" id="e1909f1c-ed9a-46a6-aceb-2731dc62b68f" data-toc-id="e1909f1c-ed9a-46a6-aceb-2731dc62b68f">Updated and Expanded for 990EZ, UBIT, the Tax Cuts and Jobs Act, and so much more!</h2>Overworked or volunteer administrators may not be equipped with the most up-to-date accounting knowledge that affects their church's ability to accept donations, oversee a benevolence fund, file church payroll, and offer a compensation package for their minister.&nbsp;Lisa London,&nbsp;the accountant who brought you&nbsp;QuickBooks for Churches&nbsp;&amp;&nbsp;Nonprofits, understands and wrote this must-have reference to take the hassle out of church bookkeeping.<h2 style="text-align: start" id="fb5bd7e2-8eab-4e51-b623-e626159a14a7" data-toc-id="fb5bd7e2-8eab-4e51-b623-e626159a14a7">In this book, London delves into the specialized needs of church accounting for church administrators and volunteers, including:</h2><ul><li>Essential steps for starting a church</li><li>Easy to learn internal controls to prevent fraud or error</li><li>How to select church accounting software</li><li>Recording and acknowledging church contributions, including vehicle donations and love offerings</li><li>Benevolence fund management for your congregation's best interest</li><li>Calculating and filing employee payroll&nbsp;</li><li>Bill paying across programs and the impact of Tax Cuts and Jobs Act of 2017 on Accountable Reimbursements Plans.&nbsp;</li><li>How to design and implement a compensation package for your minister, including a housing allowance, pastor payroll, and compensation package</li><li>Understanding accounting and the important financial reports</li><li>Giving your members all the information they need</li><li>Preparation for an annual audit</li><li>Budgets and forecasting future church growth</li><li>Unrelated Business Income Taxes (UBIT) and how to complete a 990EZ.</li></ul>We understand that the church staff needs to support its ministry with strong controls on the assets and a handle on the finance function. Our goal is to make accounting transactions easier with simple instructions, straightforward training and resources, so you can spend less time on the church&nbsp;accounting and more on your ministry.<h2 style="text-align: start" id="7858dd00-5c23-4496-b891-d1166fa972f4" data-toc-id="7858dd00-5c23-4496-b891-d1166fa972f4">Authors Bios</h2>Vickey Boatright, the accountant behind <a target="_blank" rel="noopener noreferrer nofollow" href="http://www.freechurchaccounting.com/">www.freechurchaccounting.com</a>, joins London in helping you set up accounting spreadsheets, explaining different types of accounting packages, and guiding you through every imaginable aspect of church bookkeeping.&nbsp;Terressa Pierce of <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.freechurchforms.com/">freechurchforms.com</a> brings her 30+ years of expertise as she advises you on how to rearrange your church office. Together, this powerful trio will help you master the nuts and bolts of church&nbsp;accounting with ease.Lisa London is a CPA and top-selling author with decades of experience who has helped organizations reduce their accounting time dramatically. The Accountant Beside You&nbsp;series has been sold in all 50 states and every inhabitable continent.&nbsp; In addition to her detailed e- and print books, Lisa London offers supplemental and often free information online at&nbsp;www.accountantbesideyou.com&nbsp;and through her popular YouTube videos and webinars. If you are already using QuickBooks for your church, consider investing in QuickBooks for Nonprofits &amp; Churches or save money by purchasing a church accounting bundle.&nbsp;Whether you're just starting your church accounting journey or if you've been with the same spiritual home for years, The Accountant Beside You will be there every step of the way!<h2 style="text-align: start" id="87276f85-037a-4ce3-b7c9-e102009bbefc" data-toc-id="87276f85-037a-4ce3-b7c9-e102009bbefc">Contents &amp; Features</h2><h5 id="4be6193f-1981-48ef-8e61-21cb038e64ae" data-toc-id="4be6193f-1981-48ef-8e61-21cb038e64ae">1.&nbsp;HOW and the IRS-Administrative Issues 1</h5>A. IRS definition of a Church 1B. Section 501(c)3 Tax-Exempt Status 2C. Basic Steps to Start a New Church 2D. Church By-Laws 4E. Organize the Office 5F. What Needs to be Saved? Record Retention 10G. Summary 12<h5 id="bf72d7e9-31dc-4de3-843d-15b9de57f998" data-toc-id="bf72d7e9-31dc-4de3-843d-15b9de57f998"> 2. Proper Procedures and Internal Accounting Controls 13</h5>A. The Need for Strong Internal Controls 14B. Governing Body's Responsibility 14C. Separation of Duties with a Small Staff 15D. Controls for Receiving Cash &amp; Donations 16E. Donor Acknowledgments 19F. Fundraisers and Controls 19G. Cash Out—Controls for Paying Bills &amp; Credit Cards 20H. Check Signers 21I. Paying Bills 21J. Automatic Drafts 22K. Petty Cash 23L. Gift Cards or Prepaid Store Cards 24M. Credit Cards 24N. Controls Against Duplicate Payments 25O. Payroll 25P. Summary 26<h5 id="56e2cb43-8b57-4a72-babc-66b77677d032" data-toc-id="56e2cb43-8b57-4a72-babc-66b77677d032"> 3. What is Special About Church Accounting? 27</h5>A. Accountant's Speak—Modified Fund Accounting 27B. Accounting 101 30C. Cash vs. Accrual Accounting Methods 31D. Chart of Accounts 32E. Naming the Accounts 33F. Basic Bookkeeping 34G. Reporting Differences 35H. Differences in Terminology 37I. Summary 38<h5 id="6100d9c1-4056-49a0-b117-cc2aa91ac7e4" data-toc-id="6100d9c1-4056-49a0-b117-cc2aa91ac7e4"> 4. How do I Select a Church Accounting System? 39</h5>A. Spreadsheets 39B. Off-The-Shelf Accounting Software 41C. Church-Specific Accounting Software 41D. Online Accounting Packages 41E. How to Evaluate Accounting Software&nbsp;for Your Church 42F. Summary 43<h5 id="a7810a1f-2f8a-4f32-82fa-d4e4d4e35521" data-toc-id="a7810a1f-2f8a-4f32-82fa-d4e4d4e35521"> 5. Contributions—Part I: Receiving and Recording 44</h5>A. Internal Controls and Written Policies 44B. Counting the Weekly Offering 44C. Offering Envelopes 46D. Making the Deposits 47E. Recording Donor's Contributions 47F. Donation Stacking 48G. Credit Card Donations and Online Giving 49H. Stock Donations 51I. Donor-Advised Funds (DAF) 52J. Summary 54<h5 id="5d157c6b-18ee-49d7-820a-e5fc077aab2d" data-toc-id="5d157c6b-18ee-49d7-820a-e5fc077aab2d"> 6. Contributions—Part II: Acknowledging 55</h5>A. Cash Contributions 55B. Quid Pro Quo-Something for Something 57C. When You Do Not Need Disclosure Statements 59D. Non-Cash Contributions 62E. Gifts of Autos, Boats, and Airplanes 67F. Summary 70<h5 id="3f29d042-5fc1-40c9-9270-abee28911111" data-toc-id="3f29d042-5fc1-40c9-9270-abee28911111"> 7. Contributions—Part 3: Other Topics 71</h5>A. Gifts to Specific Individuals 71B. Donated Labor/Services 73C. Recording Donated Items as In-Kind Contributions 74D. Discount Donations 74E. Checks Written to Another Charity 74F. Capital Campaigns 75G. Summary 77<h5 id="0ccb9f9e-0ea1-4cf3-a7b0-8a739f45089c" data-toc-id="0ccb9f9e-0ea1-4cf3-a7b0-8a739f45089c"> 8. Benevolence Policy 78</h5>A. Requirements 79B. Discretionary Benevolence Funds 80C. Benevolence for Employees 80D. Earmarked Benevolence Contributions 81E. Disbursement Procedures 82F. Written Benevolence Policy Example 82G. Summary 83<h5 id="2a5259e3-7b03-4c39-9845-275db67064de" data-toc-id="2a5259e3-7b03-4c39-9845-275db67064de"> 9. Paying the Bills 84</h5>A. Terminology 84B. Approving and Paying the Bills 84C. Scams 85D. Church Insurance and Contracts 86E. Entering Data 87F. Allocation of Expenses 88G. Bills Drafted out of the Bank Account 89H. Credit Card Payments 89I. Petty Cash Replenishment 90J. Recording a Mortgage 91K. Summary 92<h5 id="13dc406b-f1ef-4fdf-bc7e-4afa19f779b7" data-toc-id="13dc406b-f1ef-4fdf-bc7e-4afa19f779b7"> 10. Reimbursement Policies and Procedures 93</h5>A. Setting up a Reimbursement Policy 93B. Example of a Reimbursement Policy Resolution 94C. Employee Business Expenses to be Included 95D. Reimbursing the Expense 97E. Advance Payments 100F. Ticketless Airline Expenses 101G. Ramifications of Not Following the Policy 102H. Inability to Reimburse a Valid Expense 102I. Summary 102<h5 id="71dc51ee-a827-45e7-89da-98c3c1ca617b" data-toc-id="71dc51ee-a827-45e7-89da-98c3c1ca617b"> 11. Payroll—Part I: Basic Steps 103</h5>A. Terminology 103B. Forms &amp; Publications 104C. Setting up the Payroll 105D. Determine Pay Period 110E. Employee Form I-9 110F. Employee Form W-4 111G. New Hire Reporting 112H. Establish Your Payroll Records 113I. Summary 113<h5 id="f1c624fa-e5bd-4c0b-8b62-1569a36d6783" data-toc-id="f1c624fa-e5bd-4c0b-8b62-1569a36d6783"> 12. Payroll—Part II: Calculating &amp; Filing 114</h5>A. Wage Bracket Method 114B. Percentage Method 117C. State Tax Withholding 119D. FICA—Social Security &amp; Medicare Taxes 119E. The Employee's Payroll Check 120F. Posting the Payroll Expense 122G. Other Taxes 122H. Payroll Tax Deposits 123I. Payroll Tax Filings 124J. Year-End Filings 129K. Summary 133<h5 id="acde0fc9-491c-490e-9877-371b89133fd0" data-toc-id="acde0fc9-491c-490e-9877-371b89133fd0"> 13. Payroll—Part III: Ministers and the IRS 134</h5>A. Who is a Minister (for Tax Purposes) 134B. Employee or Independent Contractor 135C. Housing or Parsonage Allowance 136D. Income to be Reported by a Minister 142E. Exemption for Self-Employment Tax 143F. Tax Filings for Ministers 143G. Designing a Minister Compensation Package 148H. Medical Sharing Ministries 153I. Summary 154<h5 id="baf066db-ef86-45b6-8dbd-ef5ff820ed1b" data-toc-id="baf066db-ef86-45b6-8dbd-ef5ff820ed1b"> 14. Budgeting for&nbsp;Religious Organizations 155</h5>A. The Budget Process 155B. Example Budget Spreadsheet 157C. Monthly Budgeting 158D. Forecasts 159E. Cash Flow Analysis 161F. Summary 161<h5 id="742a9be7-a7fa-43d0-80b6-8b6e2db7da1a" data-toc-id="742a9be7-a7fa-43d0-80b6-8b6e2db7da1a"> 15. Month-End Financial Requirements 162</h5>A. Monthly Processes for Complete Financials 162B. Bank Reconciliation 162C. Investment Account Reconciliations 165D. Generate Reports 167E. Summary 171<h5 id="bbf193cb-0c84-47fc-a4e9-e5b33132e814" data-toc-id="bbf193cb-0c84-47fc-a4e9-e5b33132e814"> 16. Year-end and Audit Issues 172</h5>A. Forms W-2 and W-3 172B. Form 944, Employer's ANNUAL Federal Tax Return 172C. Forms 1099-NEC (Nonemployee Compensation) 175D. Form 1099-Misc 176E. Form 1096 178F. Year-end Donor Acknowledgments 179G. State Filings 180H. Audit Needs 180I. Summary 181<h5 id="801f2400-aed4-46bb-91db-ad8af817c01e" data-toc-id="801f2400-aed4-46bb-91db-ad8af817c01e"> 17. Unrelated Business Income Taxes (UBIT) 182</h5>A. What is Unrelated Business Income? 182B. “Trade or Business” 183C. “Regularly Conducted” 184D. “Not Substantially Related” To The Mission 184E. Excluded Trade/Business Activities 186F. Examples 188G. Miscellaneous Excluded Revenues 190H. IRS Form 990-T 191I. Summary 198<h5 id="c96e208d-2326-401d-b3df-092e070afca1" data-toc-id="c96e208d-2326-401d-b3df-092e070afca1"> 18. Form 990 Annual Filings for Exempt Organizations 199</h5>A. Is a Form 990 Required? 199B. Types of 990s 199C. IRS Summary of Forms to File 201D. Completing Form 990-N (e-Postcard) 201E. Completing Form 990-EZ Short Form Return 207F. Schedule A (Public Charity Status &amp; Public Support) 218G. Schedule B (Schedule of Contributors) 220H. Summary 222<h5 id="33166d19-5f0a-4165-a87d-bcf1de4f9256" data-toc-id="33166d19-5f0a-4165-a87d-bcf1de4f9256"> Appendix 223</h5>A. Example Chart of Accounts 223B. Month-End Checklist 232C. IRS Website Addresses 233<h5 id="bdb5c524-1282-4c1e-857c-0e281e7f375a" data-toc-id="bdb5c524-1282-4c1e-857c-0e281e7f375a"> Index 235</h5>Book InformationTitle Church Accounting: The How-To Guide for Small &amp; Growing ChurchesAuthor Lisa London, CPA and Vickey BoatrightISNI&nbsp;0000 0004 5059 7909ISBN 978-1-945561-17-7Library of Congress Number&nbsp;2020920379Published November 2020 by Deep River Press, Inc.Copyright 2020 Deep River Press, Inc.&nbsp;Pages 235Order InformationSetting up an account is not required but is recommended to make it easier to track your shipments and download any digital files.E-Books and any digital files are available immediately. 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Church Accounting for Small and Growing Churches 2nd Edition (Paperback)

Learn what you need to know about church accounting without unnecessary jargon with Lisa London, CPA and Vickey Richardson of FreeChurchAccounting.com.

Church Accounting for Small and Growing Churches 2nd Edition (Paperback)

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