Arranging the accounting system for the congregation will be based upon a method that best serves the financial position of the church and how this system best provides for the financial reports that the church council will require.

A cash-based accounting system, which is considered a basic check book system, is adequate when the monthly expenses are small and easily handled by means of the familiar check book.

However, in this day and age, when it is required that financial conditions are verified, disbursements to budget accounts be confirmed, and payroll accounts for Workers’ Compensation Insurance are audited, the double entry, accrual accounting system is the method to use.

In order to be in conformity with General Accepted Accounting Principals, a not-for-profit organization should use the accrual method of accounting. The accrual method provides a more accurate record of an organization’s financial picture than does the cash-basis method.

The availability of the computer provides the means to establish an accounting system that offers everything that a congregation may require in the recording and processing of their financial information.

The software programming for this accounting process should be a double entry system similar to "QuickBooks" available in computer stores. It should provide for check writing and a monthly reconciliation of deposits and withdrawals (canceled checks). Due to the fact that this type of accounting software automatically records deposits and disbursements as posted to the congregation’s chart of accounts, the ability to create reports of financial activity is relatively easy and can provide informative details of the congregation’s financial status as related to it’s annual budget program.

Also, you may want to look into Augsburg Fortress Publishing Co.’s software program called "Revelations Church Management Software" providing record keeping programs related to membership, baptism, weddings, contributions, etc. This software also provides a fully integrated direct link to "QuickBooks."