By Robert Tomko, finance director
Three church finance considerations for our current moment:
1.) Maintain accurate and responsible records.
During this time, many of us will have fewer in-person connections with our accountant or bookkeeper. It’s important to ensure that our financial reports are produced with accuracy and integrity, even more so for churches applying for a CARES Act PPP Loan.
2.) Add a new monthly report.
Remember, “cash is king.” You should consider adding a cashflow report to your monthly financial review process. This will help you see exactly where your money is moving across all of your budget and non-budget lines. It is a better tool to track cash movements than a standard income statement.
3.) Create a contingency plan.
Have a contingency plan in place! If your giving goes down by 10%, what will you do? If your giving goes down by 25%, what additional steps will you take? It is prudent to think through next steps now so that when the unexpected happens, you have a plan in place. Further, your team will know what to expect and will not be caught off-guard due to unanticipated changes in revenue.