I am a believer that many churches’ future is determined by their chart of accounts. The chart of accounts shape the church leaderships view of their finances and affect their decisions. A confusing chart of accounts leads to confused decisions. I know there are many exceptions, but the chart of accounts is one of the hidden forces either helping or harming your decision-making ability.
Sheri Meister (Executive Director of the Dakotas United Methodist Foundation) and I identify three steps in this video to cleaning up your chart of accounts. 1)Cleaning up the old stuff by either chucking it or renaming it; 2)Making sure every account has an owner; and 3)Using the roll-up (sub-account) abilities of your accounting system. Do these things, and you will greatly help your leadership in making good decisions.
- Presentation Slides: https://www.dakotasumc.org/media/files/old/00/Conference/Finance/StewResrces/Chart_of_Accounts.pdf
- Chart of Accounts Template for QuickBooks: https://www.dakotasumc.org/media/files/old/00/Conference/Finance/StewResrces/QuickBooks_Online_COA_Sample_File.xls
- Example Balance Sheet (Statement of Financial Position): https://www.dakotasumc.org/media/files/old/00/Conference/Finance/StewResrces/Balance_Sheet.xlsx
- Example Detailed Profit and Loss (Statement of Activities): https://www.dakotasumc.org/media/files/old/00/Conference/Finance/StewResrces/Detailed_PnL.xlsx
- Example Summarized Profit and Loss (Statement of Activities): https://www.dakotasumc.org/media/files/old/00/Conference/Finance/StewResrces/Summary_PnL.xlsx