Don’t put your organization’s bookkeeping in the hands of an inexperienced individual
Staying up-to-date on the latest happenings in the accounting world is extremely important for every non-profit organization. Rules and regulations constantly change and various publications exist that offer tips for your bookkeeping staff.
We stay current with the church-related accounting environment by reading articles describing the experience of others. Recently we read this article from Christian Computing Magazine regarding accounting controls.
In our experience, in many small non-profit organizations, and especially in houses of worship, people with inadequate skills are often trusted too much with the financial affairs of the organization. They may be good people, but when untested individuals, who are inadequately trained, work in an organization with weak—or nonexistent—controls are tempted to take inappropriate actions, bad things can happen.
If the assets lost are small, the breach may never be discovered. Nevertheless, leaders are expected to be good stewards of these assets, whether it’s the widow’s mite or a multimillion dollar pension plan. The confidence of the donors depends upon it.
Real financial losses happen, and frequently. We recommend that you carefully read Christian Computing Magazine’s article. While you may not have any connection to the Catholic Church, the concepts still apply. Certainly, well-designed software with thoughtful implementation can go a long way toward securing an organization’s assets.
We have not used the software recommended and have no opinion as to the representations. There are many good vendors of similar systems. A computer system may not be essential to have a solid structure for your accounting, but it does provide the best foundation for effective reporting, budgeting and interfaces with online banking.
Whatever system you use, good accounting principles, including regular and comprehensive reports to leadership, are fundamental. Those steps and processes should not be sidestepped regardless of your circumstances. Further, a separation of responsibilities between bookkeeping tasks is essential even in the smallest church or non-profit.
After reading the article, give some serious thought to your operations. If you see anything that seems amiss, start immediately in improving your financial processes and controls. Your good people should welcome it and those you may compromise probably should be replaced anyway.
Should you have any questions or need any assistance in evaluating your internal controls or any other accounting or tax matter, let us know. We have the experience, training and depth of staff to help. We can be reached at 904-398-4747 or through our Contact page.
