Five Financial Metrics Every Church Should Track

At Be Missional Finance, we understand that non-profit accounting is a specialized field with unique challenges. Ministries and other non-profit organizations often rely on a mix of donations, grants, and fundraisers, resulting in unpredictable revenue streams that require careful planning. Financial stewardship in these settings is critical—not just for maintaining operations but for upholding trust with donors and meeting regulatory standards.

Managing your organization's finances can present challenges if you don’t keep a close eye. At Be Missional Finance, we provide accounting services for churches and faith-based nonprofits. Here are five common accounting mistakes we see.

Preparing for a financial audit is more than just meeting compliance requirements—it's a valuable opportunity to strengthen your church or nonprofit’s financial practices. An audit can provide key insights, reinforce accountability, and enhance transparency. Here are a few tips to help you prepare: Each year after your audit, begin preparing for the next one! Keep financial documentation organized all year long, both digitally and in paper form, to take off some of the load of the audit preparation process. Evaluate how your church or nonprofit handles donations, expense approvals, and cash management. Strong internal controls demonstrate secure financial processes, which auditors will review during fieldwork. Address any potential obstacles beforehand to ensure a smooth audit experience. Effective communication is crucial—both internally with your staff to gather necessary information and with your auditor to prevent any unnecessary delays. Be sure to designate an individual or team as the primary organizer of the audit to ensure clear expectations.  Keep a detailed record of any advice or recommendations your auditor provides to ensure your organization is continuously making improvements. At Be Missional Finance, we provide outsourced bookkeeping and accounting solutions tailored to churches and nonprofits. If you need support with your finances, contact us today to learn how we can take the financial load off your team so you focus on your mission.

At Be Missional Finance, we know how difficult it can be for your church or faith-based nonprofit when your bookkeeper is transitioning. As a trusted accountant for many teams, here are a few things we recommend when the time comes:  Recognize the Challenge: Volunteers may not have the time or expertise for such detailed work, and hiring a new employee with experience isn’t easy, especially with the current shortage of accountants. Interim Oversight: During the transition, it’s crucial to have someone take charge of the finances. This shouldn’t fall on your senior leader—they have enough on their plate. Documentation: Make sure the bookkeeper documents their processes and procedures. This will be invaluable for the future. Modernize : Evaluate if it’s time to upgrade or transition to new software. Using new tech solutions to help streamline your process can reduce reliance on one individual. Decentralize Responsibilities: Consider spreading the financial duties across a team. This way, you’re not left in the lurch if one person leaves, and it fosters a collaborative environment. Craft a Clear Job Description: Decide whether the role should be part-time, full-time, or outsourced. Recognition: Take time to celebrate the retiree! They’ve carried a heavy load and their contributions deserve recognition. Navigating the retirement of a key team member like a bookkeeper is no small task. Schedule a call with our experts and let us take the load of accounting services off your team!