A simple equation taught in accounting school is value = quality / price. Yes, it seems obvious, but you would be surprised how many people buy the cheapest church accounting software they can find without thinking about quality.

Don’t necessarily buy the most expensive church accounting software either. Idealistically a church would want to find a high quality product for a low price. This would yield the church accounting software with the most value.

What is a good price for church accounting software?

As seems to be the trend in today’s business world, a lot of church accounting software providers charge a monthly fee. While having monthly payments can be annoying, it also gives you the opportunity to try the church software out for a month at a relatively low price. If you don’t like it you can return the software in most cases. Average monthly prices for church accounting software range from $50 – $200.

If you prefer a onetime payment to monthly payments then you can consider an option like QuickBooks. QuickBooks is a leader in church accounting software. The version that seems to work best for churches is the QuickBooks premier Nonprofit Edition. Its cost is around $350 unless you can find a special deal somewhere.

High Quality Church Accounting Software

Now that we’ve discussed price, let’s talk about quality. Some church accounting software comes with a ton of added features. This type of software comes with the basic accounting features like tracking your funds, but it also has tools that allow you to manage your church (event tracking, etc.) This type of software is usually referred to as church management software.

Most small churches don’t need all of the extra features and should just find a product that will track the church funds. A high quality product in this case would have simple fund accounting that allows the church to generate basic reports.

By evaluating your church’s needs, you can determine what a quality product is for your church (yes it will vary from church to church). Once you have determined quality and price, then you can make a good decision about what church accounting software to buy.

Quick purchasing guide
•    Price isn’t the only element to consider when purchasing church accounting software
•    Quality is important and is defined by your church’s needs
•    Find the best value (quality/price) to find the best church accounting software for you

(1) Make sure donations are only handled by trusted leaders.

This rule sounds rigid, but if you follow it, your church will avoid 90% of church thefts. Have two or three trusted leaders of the congregation be the only people who should handle donations. Make sure to announce regularly in church that only these people should receive tithes and offerings. Follow this rule religiously! Make sure members do not give donations to these chosen leaders’ wife, husband, children, or dog.

(2) Use Church Accounting Software

Church accounting software can be expensive, but the software can save the church not only time but money. Some church accounting software comes packaged with internal controls that make it more difficult for Clergy to steal. For example the software will require that two people sign off on the amount of money received and deposited each week. Church accounting software also stores the names of those in charge of the money for that week. If a problem ever arises the names can be easily recalled and the potential perpetrators can be questioned.

(3) Ensure that two people are with the money at all times.

When two church leaders are with the money, the chances of theft decrease significantly. Yes, the potential for collusion still exists, but most accountants realize that collusion is almost impossible to stop. From the time the money is donated; to when it is accounted for, entered into your church accounting system, and deposited in the bank make sure that two Clergymen are with the money.

These rules may sound offensive to many church leaders, so it is worth remembering that these rules protect the leaders as much as anyone. For example, what would a church leader say if he deposited the money into the bank by himself and the bank made an error and claimed they never received the money? (This happens more than one might think because banks are closed on Sundays when many religions are collecting donations) If two leaders deposited the money, then the second leader can testify that he saw the first leader donate the money. Also they can use their church accounting software to provide further evidence of the donation.

Remember to have trusted leaders receive donations, use church accounting software, and ensure that two people are with donations at all times. You’ll protect your church leaders from embarrassing accusations and you’ll save your church time and money.

If you were looking for information on financial planning software follow this link.

Keep in mind that fund accounting is different than GAAP accounting. When a church receives donations from its members, it needs to keep the money in separate accounts or funds. Remember that only church accounting software will help you keep track of these funds, normal software will not cut it.

If you have any suggestions for quality church accounting software, please let me know by commenting below.