Save yourself some time and headaches at the end of the year. Performing reconciliations on a monthly basis will help identify errors and other irregularities when the circumstances are fresh in your mind.
Have a monthly closing checklist that is followed and monitored for compliance
Reconcile the donor system with the general ledger contributions account
Track temporarily restricted assets as they are donated and as the funds are spent
Track employee benefit hours (vacation time, etc.)
Compare actual spending to the budget.Catch issues early when changes can be made.
Reconcile Forms 941 to payroll expense
Maintain a fixed asset folder.Include invoices of purchases and bills of sale for dispositions.
Monitor debt covenants.Address issues with the lender before breach occurs.
Monitor accounts outside of your control.Groups within the church should be providing bank statements if a separate account is held using the church’s identification number.
Contact your accountant with new issues or questions regarding employee compensation, benefits, gifts, taxes, housing allowance, etc.
From Church Law & Tax
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