By the end of this lesson you will know the tools you need to track your finances and steer the financial future of your organization. By stewarding your resources of your organization, you can make better decisions based on financial health. To get us started, evaluating your financial health starts with your financial system.
Elements of a Good Financial System
Fund Accounting
An important element of stewardship is making sure that the money you have, receive, and spend is allocated for the proper purpose. To accomplish this you need a solid fund accounting system. Do you have quick access to your finances and ability to run reports? If you rely solely on one person to not only run reports for you but also to interpret them, I would suggest you spend a little time to get a little more knowledge about that so you’re not always waiting around.
Looking for a better accounting system that can rock your church’s fund accounting? That’s why we built Aplos Accounting.
Tip: Want to learn more about implementing fund accounting for your church? Check out our email course on fund accounting for churches.
Financial Reports
Your financial reports are an essential piece of implementing stewardship across your organization. They can tell you if you are spending money wisely. If you are managing your funds appropriately. If you are budgeting accurately. But in order to use your financial reports to answer these questions, you need to be able to read them. When you see reports, do you know what they are telling you? Here are a couple of the most common reports that your accounting system should be able to produce so you can evaluate what is working and if you are financially healthy.
The Balance Sheet by Fund
Pro Tip: To be able to see the balance of your funds, it is essential to use a true fund accounting software such as Aplos.
Income Statement
Other Reports
Homework: Ask for a copy of your financial reports, get a cup of coffee, and dig in! If you aren’t sure what you are looking at, call in a favor and ask someone to walk your through it. Investing the time to get up to speed and confident in reading your financials will absolutely pay off in the long run.