A bookkeeper has sent your church a proposal, or is about to, and someone on the board has asked the sensible question: what exactly are we agreeing to? A written scope of work, often part of an engagement letter, is the answer. It protects both sides. The church knows what it will receive and when, and the bookkeeper knows what the church will do in return.
This guide lists what the document should cover. It is general bookkeeping information and not legal advice; the church may want its attorney to read any agreement before signing.
Services included, and services excluded
The included list should be specific enough that a new treasurer could read it and know what happens each month: which bank and card accounts are reconciled, whether bills are entered or also paid, whether deposits are recorded by fund, whether giving records and contribution statements are in scope, and whether payroll is covered. For payroll, the scope should name which filings the bookkeeper prepares and which stay with the church or its payroll provider.
The excluded list matters as much. A bookkeeping scope normally states that tax preparation and tax advice, audits and reviews, legal advice and investment advice are not part of the service, and names anything else left out, such as cleanup of earlier years. For how those roles divide, see bookkeeper, CPA or auditor: who does what.
Who does what
Bookkeeping is shared work, and a scope that lists only the bookkeeper's tasks is half a document. Look for a clear division, for example:
- The church: counts and deposits offerings, approves bills, signs checks or releases payments, designates funds and housing allowances, approves the budget, and answers questions about transactions.
- The bookkeeper: records and codes transactions, reconciles accounts, tracks fund balances, and prepares the monthly reports.
Keeping approval and payment with the church is deliberate. The person recording transactions should not be the person approving or spending them. See internal controls for small churches.
Monthly deadlines both ways, and the reports delivered
Reports can only arrive on time if documents do. The scope should give two dates: when the church provides count sheets, receipts, bills and answers to open questions, and when the bookkeeper delivers reconciled books and reports. It should also say what happens when the first date is missed, which is usually that the second one moves. A named contact on each side keeps questions from going unanswered.
Name the reports, not just "monthly financials". A typical list is income and expenses against budget, a balance sheet, fund balances, and bank reconciliation reports for whoever reviews them. Say who receives them and whether the bookkeeper will explain them to the treasurer or finance committee. The guide to a financial report for church leadership shows what a complete package looks like.
Access and data handling
The scope should describe how the bookkeeper gets into the church's systems and how sensitive documents move. Reasonable terms include:
- A separate, named user for the bookkeeper in each system, not a shared login
- Access limited to what the work requires, with view-only access to banking where that is enough
- An agreed method for exchanging statements and payroll documents, other than ordinary email where possible
- Who may see individual giving records
- Removal of access when the engagement ends
No arrangement removes all risk, and a scope that claims otherwise deserves a second look. What you want is a description of actual practices.
Fees, and how changes are priced
The fee section should state the amount, what it covers, how often it is billed and when payment is due. It should separate one-time work, such as cleanup or setup, from the recurring monthly fee. And it should explain how changes are handled: what happens if the church adds a bank account, a staff member or a new fund, how extra work is requested and approved, and how the fee is reviewed over time. The cost drivers are explained in what church bookkeeping costs.
Records ownership
The agreement should state plainly that the church's books and records belong to the church. In practice that means the accounting software subscription is in the church's name or can be transferred to it, a church officer holds administrator rights, and the church can obtain its file and supporting documents at any time. A church that cannot get into its own books without its bookkeeper has a problem waiting to surface.
How either side ends it
Every engagement ends eventually, and the terms are easier to agree at the start. The scope should say how much notice each side gives, what the bookkeeper completes before leaving, what is handed back and in what form, and when access is removed. A clear exit clause is what makes a later handover orderly; the steps are in switching church bookkeepers.
Before the board approves it
Read the scope against what was said in conversation, and ask for anything missing to be added in writing. Confirm who is authorized to sign for the church. If any term is unclear, particularly on liability, confidentiality or termination, that is the point to involve the church's attorney.
Danielson Bookkeeping & Consulting works this way as a matter of practice. After a consultation and a records review, what is included, what is not, the schedule and the fee are agreed in writing before work starts. The steps are set out on how we work, and you can request a consultation to begin.
