When one imagines a church, they likely picture a congregation singing hymns and praying. Any work performed within the building is mission-driven. Very few, if any, people think about church accounting software.

But behind the scenes, church accounting software plays an outsize role in its day-to-day operations. Whether it’s used for planning the payroll for the upcoming fiscal year or monitoring income, a good church accounting software system can help set up a church or religious governing body for growth over the long term. 

We just told you the “why’ behind the value of a solid church accounting system, but what about the “how”? Keep reading to learn more!

  1. It Greatly Improves Your Reporting and Compliance Abilities

As 501 (c) (3) tax exempt entities, churches avoid many of the headaches associated with tax filing other organizations face. Unfortunately, this doesn’t mean they are completely free from IRS scrutiny.

Under certain circumstances, churches and other religious organizations can be forced to pay taxes on what is called Unrelated Business Income. This can occur if a stream of income to the church if it meets the following three conditions

  • the activity constitutes a trade or business;
  • the organization regularly carries on this trade or business; and
  • the trade or business is not substantially related to the organization’s exempt purpose.

You can avoid a lot of stress here simply by carefully documenting income and spending. And luckily, the best accounting software systems offer this along with the ability to quickly and easily pull a report demonstrating compliance. 

  1. It Can Keep Your IT Spending Down

Believe it or not, the cloud isn’t just for Silicon Valley tech companies anymore. 

Top church accounting software companies now often deploy their software on the cloud. Much as been made about the mobility this offers your accounting team—no longer do they need to be in the office to access the software. But it goes well beyond that. 

Renting servers and then paying the fees associated with maintaining them can prove costly over time. It also forces your congregation to dedicate valuable space within your building to housing the servers. None of this is necessary with cloud servers.

Instead of having the physical servers on your premises, you now can rely on local hosts who handle most, if not all, of the IT infrastructure maintenance, allowing you to focus on advancing your church’s mission. 

  1. It Can Integrate with the Other Applications Your Church Uses

If anything, this post really speaks to the modernization churches across the country have undergone over the past decade or so. And as we all know, outside of “cloud” there’s perhaps no word more associated with our modern digital lives than “app.” 

Everyday, it seems, there’s a new story about a new company promising the world’s next greatest app. Interestingly enough, churches have not been exempt from the app revolution. Many modern churches use a number of apps to handle functions ranging from fix asset monitoring to tithe collecting. 

A modern accounting software system can integrate with all of these apps. If we use the example of the tithe collection app, accounting software systems can give you a true understanding of just how much your congregation collects on any given weeks. Over the long run, this will help your finance committee better plan projects and establish outreach around tithe collection. 

Any church or religious organization in the market for accounting software should no look no further than Sage Intacct. It’s the AICPA’s preferred provider of cloud accounting software, which should give you the assurance you’re working with the industry’s best.

Contact Timac Business Systems today to learn more about how we can help build a Sage Intacct software solution fit for your congregation! 

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