Financial Management of Church

What Concerns Do You Need to Deal with While Managing Any Church’s Finances?

At the same time that church is a place of worship, it has to deal with finances and financial management. This is paramount as the church has to provide certain facilities to the worshipers and pay the staff. Without these it will not work or the individuals involved have to suffer greatly or find some other church. This leads to the need for finances and then the need to manage them. There are various other reasons why managing these finances is important such the social pressure and people’s devotion.

Then arises the question of who will manage them. This management can be voluntary work, pastor or one staff’s job, some hired accountant, outsourced option, or other. (If you are looking to outsource it you can contact us. Either way, this article will help to understand some of the primary concerns about managing the church’s finances.

What Constitutes Management of Church’s Finances?

Church like other institutes of a society operates on various factors, individuals, and money flow. Managing all of these constitutes the concerned management. It is up to the appointed or hired individual or church bookkeeping services to carry out the whole thing by including all of them.

Among this management, certain financial aspects are calculated. These include:

  • Budgeting. This process outlines all the expected revenues and expenses of the church. This plays a vital contribution to various decision-making and management
  • Financial recording. This covers reporting and documenting every financial activity regularly or at other intervals. This should be as transparent as possible. 
  • Internal money flows. Money flows in and out of any financial institution, in addition to these it flows internally within the organization. This should be managed.
  • Charity and fundraising. An important source of finances for the church is charity and fundraising. It should be managed, recorded, and ensured according to biblical guidelines
  • Investments. Any church can receive investments. These need to be managed properly and put to good use in the overall budgeting.

You need to look out for these aspects and their concerns while managing finances for any church. These operate differently as per their nature individually. These work as follows:

Budgeting concerns

This is a vital aspect of all sorts of financial institutions; the difference in this regard revolves around the purpose and role of the church. After combing all the factors budgeting concerns for the church include these:

  • Existing debts. Even if it is a religious institution and holds value in people’s eyes, it still has to pay and clear its existing debts. This hinders the overall budget-making, makes it harder to reach breakeven, and pushes you to find the solution.
  • Inflation. Again, this is a common problem for spending and making budgets. Thus, the church has to face this while budgeting. You need to manage the whole thing as per the existing prices of things and services.
  • Money inflows. Budgets include both the inflows and outflows to balance the equation. This can become a problem for you if the inflow is insufficient to provide for the outflow during the budgeting stage.

Financial recording

Financial decisions largely depended on recording every transaction involving inflow and outflow using the latest software like Zohobooks etc. This is particularly important for churches because of the mode of and nature of transactions. For these, the concerns include:

  • Insignificant transactions. Churches like other similar institutions, have to deal with very little transactions. These transactions are hard for you to keep track of while recording all the transactions.
  • Silent donations. Since the concerned institution holds religious attachments, people make donations without making any records. This can create a huge troublesome task to count the amount and include it in the overall recording.

Internal money flows

The internal movement of money too has its own implications in the overall financial management of the institution. For this, the major concerns include:

  • Budgeting restriction. For any institution, the decisions should be made according to the set budget. This creates some restrictions for various activities such as internal money flows. When these restrictions come in conflict with internal money flow it becomes a problem for you to manage both.
  • Unrecorded internal spending. There can be various small internal spending that often goes unrecorded. This can lead to difficulty with financial management for you as you won’t be able to do the math properly.

Charity and fundraising

A particular factor in managing finances for churches and other religious institutions is charity. People who feel close association and devotion pay all sorts of charities. In addition to that, the institutions can go for fundraising. These come with various concerns such as:

  • Recording the quantities. This can be a challenge for you and the ones handling charity and funding to record all the charity and funds due to various reasons. These can affect your financial management and thus you need to arrange for this concern.
  • Slipped amounts. While people feel some devotion and likeness to it, there are people who tend to steal from institutions like churches. These become a good target due to various reasons such as loose regulation. This can create substantial problems for financial management.
  • Possible reasons for donations. This is mainly a concern in the case of major contributions from local businesses. They can have hidden reasons for the overall money flow in churches which can lead to interference in the overall working.


This could be an extension of charity at a mass level. This is particularly important as it includes a large amount of money inflow. These can have concerns such as:

  • Record keeping. While small amounts need proper documentation, the big amounts particularly need documentation. You need to make sure that they are recorded and accounted for during management activities.
  • Proper allocation. Investment mainly provides for the expenditures thus you need to properly ensure the right allocation. This is vital for proper budgeting and if not carried out properly can lead to problems

These are some of the essentials you (whether you are a financial expert, volunteer, one of the staff, or others) need to worry about while managing financial concerns for any church. You can also contact us for assistance. Our experts are available to guide you and help you with management.


Churches need financial management for proper work in addition to other managerial work. This can be carried by various sorts of individuals for various reasons. But no matter the nature, type, or expertise, he needs to go through some set concerns. These concerns are discussed in the article.