You said yes at the annual meeting, and a week later someone handed you a box, a login written on a sticky note and a checkbook. Most new church treasurers start about there. The first three months are less about doing the bookkeeping than about finding out what you are now responsible for, confirming that the numbers you inherited are real, and settling a routine you can keep up.
Days 1 to 14: get access in your own name
- The bank. Be added to every account as your bylaws direct, and have the previous treasurer's signing authority and online access removed. Ask the bank for a list of every account held under the church's name and tax ID number.
- Software. Your own login to the accounting file, the giving platform, the church management system and the payroll service. Do not take over someone else's password.
- Cards. A list of every church card, who holds it and its limit.
- Mail and notices. Find out where bank statements and government letters are delivered, and make sure they will reach you.
- Paper. The checkbook and blank check stock, count sheets, prior-year files and the key to wherever they are kept.
What to read before you change anything
- The bylaws, for what they say about the treasurer, who approves spending and who approves the budget
- Any written financial policies
- The last twelve months of board and finance committee minutes
- The current budget and the most recent monthly reports
- The last year-end reports, and any audit or review report
- The list of funds, with whatever documents show which are donor-restricted
- Loan agreements, leases and insurance policies
- Recent payroll reports and the board minute designating the pastor's housing allowance
If the terms are new to you, start with church bookkeeping basics and restricted, designated and general funds.
What to ask the previous treasurer
Ask for an hour or two, and take notes. Most of what you need is not written anywhere.
- What do you do each week, each month and each year, and on what dates?
- What is paid automatically, and from which account?
- Which funds did a donor restrict, and where is that recorded?
- Is anything unfinished: an unreconciled month, an unanswered letter, a promised transfer?
- Who files the payroll returns, and who issues the year-end wage and contractor forms?
- Who are the church's CPA, payroll contact, bank contact and insurance agent?
- What would you fix if you had the time?
Ask whether you may call with questions for the first few months. Most predecessors are glad to be asked.
Days 15 to 45: verify what you were handed
This is not an accusation against anyone. It establishes your starting point, so you know which numbers you can stand behind.
- Bank balances. Is every bank and card account reconciled through the most recent statement? Does the balance in the books, adjusted for uncleared items, agree with the bank?
- Fund balances. Do the fund balances add up to total net assets, and is there enough cash to cover the restricted funds?
- Giving records. Do year-to-date contributions in the giving system agree with contribution income in the books?
- Payroll. Do the payroll reports agree with the books and the bank? Ask the payroll provider or the church's CPA to confirm that returns have been filed and deposits made on time.
- Housing allowance. IRS Publication 517 describes a designation made by official action in advance of payment. Confirm the written designation for the current year is on file.
- Records. IRS Publication 1828 lists the records a church is expected to keep, including ledgers, banking records, payroll records, invoices and minutes. Find where each is.
Write down what you could and could not confirm, with dates. The month-end checklist for church books gives the order to work in.
Your first reports
Keep the existing report format for the first two or three months, so the board can compare like with like. With your first report, include a short handover note: what you verified, what is still open, and what you intend to look at next. If the reports themselves need work, improve them once you are settled, using what a monthly financial report for church leadership should include as a guide.
Days 46 to 90: set the routine
- A calendar of weekly, monthly, quarterly and annual tasks, with dates
- A fixed day each month for closing the books and sending reports
- A review of who approves, pays, records and reviews, written into policy. See internal controls for small churches.
- A written procedure for each recurring task, so your successor does not start from a box
- A look ahead to budget season and year-end giving statements
When to ask for outside help
Some findings are bigger than a volunteer role, and saying so early is part of doing the job well.
- Accounts not reconciled for several months, or balances that will not tie to the bank
- Fund balances that exceed the cash on hand
- Payroll returns or deposits that may have been missed
- No written housing allowance designation
- Transactions you cannot explain after asking
Tell the board, and match the problem to the right professional. Tax questions, including anything about clergy pay or missed filings, go to a CPA or tax adviser. Legal questions go to an attorney. Records that are behind or wrong are bookkeeping work; a church bookkeeper can bring the file current and train you on the routine, or carry the monthly recording so your time goes to oversight.
