General Considerations

General Considerations

There are certain basic differences between commercial accounting and accounting for churches:

1. In the church, money is only a means to an all-important end. The aim is to marshal and utilise resources in the most effective way. This differs from business, where the aim is to show a profit.
2. Assets such as buildings and land are not normally considered as realisable assets. They are not part of “capital” which is bought and sold or used to produce profits.

Parish accounts should be kept in such a way as to provide for:

1. Control – to ensure
   1. all transactions are clearly and accurately recorded
   2. all income due to the Parish is paid into the parish bank account
   3. payments are properly authorised and supported by adequate documentation
   4. funds given for a particular cause are correctly utilised for that cause.
2. Information – to ensure that adequate information is readily available to the Parish Council as to the financial position of the Parish.
3. Reporting – to ensure that the accounts are kept in such a way that an accurate statement can be prepared for the annual meeting and the accurate completion of returns or statements required by the Diocese and regulatory authorities.