Improve the financial management of your department

No matter where you are or what your financial management skills are, here are some tips to help you manage your ministry finances with confidence.

Finances are one of the most valuable resources you hold within your ministry. Now, God is the one who opens the way and provides, but with the gift of finances given to the churches, you are charged with the task of managing your finances well. Managing your department’s finances can be overwhelming. Not everyone is good at handling the digital side of ministry.

No matter where you are or what your financial management skills are, here are some tips to help you manage your ministry finances with confidence.

Track your donations

One of the main ways to manage your finances is to track what comes into your ministry. You’ll want a clear picture of the amount of donations received, and to do that you need a tool that will tell you exactly what you’re receiving.

There are many tools to help you manage your donations. Do a search and see which tool best suits your organization’s needs.

You will want a tool that includes:

  • Donor management
  • Contribution management and reporting
  • Donation report
  • Ability to send contribution statements and receipts

You’ll want a tool that gives you vital information about your giving so you know what’s going into your funds and from whom.

Once you have a clearer picture of how much to donate, you can then create budgets, plans, and more to grow your finances.

Hire the right accountant

To fuel your ministry’s finances, you need to have a clear idea of ​​where your finances are today.

Not only does this take into account the donations received, but all the expenses of your ministry. You will not be able to build and grow on the basis of “guesswork” about the financial situation of your ministry. You must have complete clarity on what you are receiving and where you are spending.

Having a ministry-minded accountant will be essential for the growth of your ministry finances. While it may seem counterintuitive to pay someone to manage your money (even on a tight budget), having a ministry-minded accountant will be a game-changer for the health of your finances.

All of those questions you have about your finances’ compliance with the IRS can be answered by a knowledgeable accountant. Financial best practices are put at the forefront of your ministry when you have an accountant who understands your church but knows how to keep your finances in line.

keep learning

There is always something new to learn in managing your department’s finances. Whether it’s best practices to execute or a new law implemented by the IRS, you’ll always want to keep learning and growing with your finances.

One of the best ways to keep learning is to take online courses! Online courses are a great way to keep learning, but learn at your own pace. There are so many sensible courses to help you improve your finances.

When looking for a course, look for these specific topics:

  • Church and ministry budgeting
  • How to manage church donations
  • How to pay your staff
  • Understanding Credit and Refunds

First published on Used with permission.