While many industries have their own accounting nuances, churches utilize entirely different principles and practices. As a result, their financial needs are far more complex than many other similarly sized organizations.
Churches and businesses view revenue generation differently, use revenue differently, and report revenue differently. Churches need money to operate; however, unlike businesses, their primary goal is not to generate revenue. Instead, they collect money to pay for operational expenses, fund campaigns, and support their ministries. Furthermore, a church does not have shareholders, so any excess income is not paid out – it is reinvested to advance its mission. This is reported on a “statement of activities” instead of an income statement like a traditional business.
Shrewd business owners understand the benefits of outsourcing accounting functions. Utilizing an accounting firm maximizes business value by improving financial reporting accuracy and timeliness, allowing for better strategic planning, and reducing tax burden. However, these benefits depend on a solid working relationship with an experienced accounting firm. When there is a poor fit or the firm is performing inadequate work, its value is likely lower than expected. In extreme cases, business objectives and strategic growth plans can also be stymied.
If you notice any of these critical issues, it may be time to fire your accounting company:
One mistake that unites all small business owners is trying to do too much in-house. Small business owners are naturally cost-averse, which makes them less likely to outsource financial needs when they arise. They are far more likely to bumble through the numbers related to essential projects themselves or consult a bookkeeper for ad hoc assistance rather than hire a specialized accountant to do the job.
Organizations looking to outsource their financial needs often wonder who is best qualified to handle the intricacies of their business operations.
With the multitude of options available the landscape of potential financial solutions is vast. Factor in the solutions catered specifically towards SMBs, local businesses, privately-held businesses, and businesses in designated industries and the result is an overwhelming sea of possibilities.
Within these choices are two distinctly different options – freelancers and large firms.
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