Each of the funds mentioned previously will probably have specific designations within the fund to identify area where certain monies are to be held or to which certain costs are to be charged. This is especially true in the General Operating Fund of the congregation.

A chart of Accounts, therefore will be required to identify all areas within a fund where income and disbursements will be recorded. While there are many ways to set up a chart of accounts it is important that a bit of logic be used and that the chart of accounts be flexible enough to allow for future expansion, but also easy to use and understand.

Depending upon the type of accounting system you feel will best suit the needs of your congregation, a chart of accounts may use a system whereby each account designation is assigned a number or you may use the actual account name designation. A computerized software system will allow you to use either the alpha numeric or the account name arrangement.

Your chart of accounts will be, for the most part, based upon the annual budget of your congregation. Each of the designated accounts itemized in the budget will be the basis upon which your accounting system will be designed.