Weekly Church Acctg System Issues 0912-03 ZZfwi

                                 TO:   All Interested Church Onliners                                                     FROM: Jim Bramer. Retired CPA-Auditor
                                                                                                                                                         FILE:  0912-03/fwi

                                  RE:  Weekly Church Accounting System                                           Originated in August 2001


    Today's "Ax to Grind" topic has to do with a Church having an overall Weekly Accounting System for financial reporting.  

    Fact:       A Church has a weekly, or Sunday, "Income" emphasis but it usually has a monthly "Expense"
                    emphasis. 
    Thrust:
    A Church should have a weekly accounting emphasis for both "Income" and "Expense." 
    Why:    
 These two important Church Finance measurement features are now more compatible. Your financial
                   reports would, therefore, be more meaningful because you are weekly comparing "Apples with
                  
Apples", not "Apples with Grapes"  etc.

       Please look at the financial statement below in an Expense Component Analysis  worksheet format.  Please note how we have placed each of the proposed July to June 2xxx "Expenses"   into one of the following expense timing categories: "When Needed", "Monthly Only" and "Maybe Weekly".  The "Maybe Weekly" items mean that they could be changed to occur each week.  Or almost Two Thirds (65%) of the total Expenses could be changed to Weekly transactions. 

      
Salaries and Benefits make up 47% of the total Expenses.  One approach is to have payroll every other week (bi-weekly) rather than semi-monthly (15th and last day of month) like at present.  Or payroll could be weekly, and the staff could receive their pay each Wednesday, rather than on the present 15th and last day of a month.  Of course, there would be more payroll transaction processing, but not likely too much of a problem since 90% of the staff is paid Online.  The Church, of course, would double their Online Payroll processing costs for a weekly payroll effort. 

      The Church could continue its year end as of the end of that month,  but it could have a June 2xxx fiscal year with a weekly emphasis.  It is my understanding that the Grocery Store business has a weekly financial accounting emphasis.  My thinking is that the weekly cycle for a Church would be from Thursday through the next Wednesday.  This way all of the week end activity (offerings counted and recorded, bills incurred and checks reflected) would be consistently updated Monday through Wednesday, etc.  Or the Church fiscal year for the following three years would be as of a weekly Wednesday, or June 28, 2000, June 27, 2001 and June 26, 2002 - and not at a June 30th month end per se. Years would have 52 weeks with an occasional 53 week year.   

        Let me know your thoughts at  Jim@bcidot.org on this topic after you Go Here  and see a sample of a Church's
Actual to Budget periodic report (under this weekly system it would be produced each Thursday, etc.) flowing via the QuickBooks system.  
 

Expense Component Analysis (1)

Total(5)

July-June 2xxx (2)

When Needed(3)

Only
Monthly

Maybe
Weekly

5000 � Sal/Benefits

5501 � Salaries & Wages

$ 482,572

$ 482,572

5509 � Benefits

$ 48,662

$ 25,223

$ 23,439

5515 � Workman's Comp

$ 3,450

$ 3,450

Total 5000 � Sal/Benefits

 47%

$ 534,684

6000 � Office & Admin

6621 � Communications

$ 12,250

$ 12,250

6622 � Printing Supplies

$ 5,950

$ 5,950

6623 � Office supp/exp

$ 23,000

$ 23,000

6624 � Postage

$ 5,600

$ 5,600

6625 � Postage Meter

$ 3,000

$ 3,000

6626 � Rep/Maintenance

$ 500

$ 500

6627 � Software

$ 1,500

$ 1,500

6628 � Equipt Lease

$ 6,000

$ 6,000

6629 � Prof Services

$ 8,500

$ 8,500

6668 � Advertising

$ 500

$ 500

6670 � Staff Develop

$ 3,300

$ 3,300

6672 � Liability Insurance

$ 7,600

$ 7,600

6908 � Office Equipment Purchased

$ 13,000

$ 13,000

6000 Off & Adm 7%                                 

$ 90,700

6500 � Property Expenses

6541 � Services Rendered

$ 900

$ 900

6542 � Bldg  Maint

$ 14,500

$ 14,500

6543 � Property Lease

$ 5,272

$ 5,272

6544 � Custodial

$ 3,080

$ 3,080

6545 � Custodial Svcs

$ 35,640

$ 35,640

6546 � Grounds Maint

$ 9,000

$ 9,000

6548 � Htg/Air Condition

$ 6,000

$ 6,000

6550 � Property Tax

$ 214

$ 214

6551 � Special Supplies

$ 264

$ 264

6552 � Security

$ 2,500

$ 2,500

6553 � Maint Exp

$ 800

$ 800

6555 � Utilities

$ 53,400

$ 53,400

6561 � AllElse exp

$ 350

$ 350

6580 � Vehicle fuel/lic

$ 600

$ 600

6582 � Vehicle payments

$ 3,600

$ 3,600

6599 � Voluntary SetASides

$ 9,996

$ 9,996

Total 6500 � Prop Exp

12%

$ 146,116

7000 � Mission Support

7701 � Grants Expense

$ 90,200

$ 90,200

7750 � Scholarships

$ 10,000

$ 10,000

7799 � Voluntary SetASides

$ 25,800

$ 25,800

Total 7000 � Missions 

11%

$ 126,000

8000 � Ministry Prog Exp

8600 � Services Rendered

$ 780

$ 780

8642 � Class Room Exp

$ 2,400

$ 2,400

8661 � Prog Supp/Exp

$ 43,226

$ 43,226

8662 � Staff Min Exp.

$ 7,050

$ 7,050

8663 � Curriculum

$ 17,470

$ 17,470

8664 � Books � Seminars

$ 7,668

$ 7,668

8665 � Self Funding Help

$ 17,750

$ 17,750

8667 � Teacher Apprec

$ 4,125

$ 4,125

8669 � Refresh and Toys

$ 296

$ 296

8670 � Event Costs

$ 2,000

$ 2,000

8671 � Office Supplies

$ 3,580

$ 3,580

8675 � Confer/Leaders

$ 15,000

$ 15,000

8676 � Outreach/Evangel

$ 4,870

$ 4,870

8678 � Special Projects

$ 4,000

$ 4,000

8699 � Other Expenses

$ 13,788

$ 13,788

8702 � Scholarships

$ 4,900

$ 4,900

8908 � Equip. Purchase

$ 12,900

$ 12,900

Total 8000 � Ministry   Expense

$ 161,803

9698 � Debt Service-

$ 91,260

$ 91,260

Total Expenses

100%

$ 1,150,563

$ 255,581

$ 136,075

$ 758,907

%  or Total Expense Dollars

 

100%

23%

12%

65%

K E E P   L O O K I N G   U P !!

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UPTD: June 08, 2012

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