Every year pastors across the United States are faced with high tax bills as they deal with both the realities of being responsible for paying both income tax and self-employment taxes.
We all know the idiom “Don’t put all your eggs in one basket.” The premise is that if a farmer were to collect all his eggs into one basket and then drop the basket, all would be lost and he would have to start again. The expression is often used to warn someone from pinning all their hopes, efforts and treasures onto one thing and risk losing everything.
This month, Wisdom Over Wealth was featured on Bill.com as a customer success story! Wisdom has been recommending the addition of Bill.com to the monthly process for our church clients since January 2017.
Why Does Wisdom Recommend Bill.com?
Wisdom recommends the use of Bill.com because it simplifies the process for approval and payment of expenses through their online system or app while also syncing with QuickBooks Desktop and Online.
How Does Bill.com Work?
In an online system, church staff and leaders can email expense/bill information into the Bill.com inbox. From there, a church bookkeeper or volunteer can input the bill information. After input, an approval process is set up. Once approved, each payment is released to be paid. Bill.com syncs with QuickBooks in each step of the process, which provides efficiency in using their system.
Ready to Learn More?
Check out the Bill.com case study featuring Cornerstone Foursquare Church on how Bill.com has become a successful part of Wisdom’s service to our church clients.
Contact us if you’re interested how Wisdom can partner with your church to simplify your accounting processes!
Every year church boards look for a way to exercise their fiduciary responsibility and consider auditing the books. Underneath it all, the board desires to have an independent financial professional “take a look” at the books and report if things are OK – and maybe offer some suggestions on how things could be done better.
Pastors around America were shocked in 2018 when they realized that their churches may have to pay the Unrelated Business Income Tax (UBIT) to IRS because of parking for their employees. As illogical as this is, the 2018 TCJA law declared that the expense of providing free parking (and/or transit passes) for employees is deemed to be an item of Unrelated Business Income (UBI) to charities.
Initiating the practice of budgeting sets a plan around how God is calling His church to use the funds He will provide. Intentional forethought from church leadership in crafting a budget guides the church financially throughout the year, increasing stewardship of the funds God has entrusted to your church, increasing accountability for church leadership, and fostering confidence in the management of funds given by congregants.
Churches frequently fall prey to thinking that there is no need to budget because “next year is going to be a lot like this year”. When I hear those remarks from churches, I think of the truth in Yogi’s observation, and wonder if heaven weeps at a missed opportunity to hear what the Lord has planned for that ministry. Is that church headed to where He wants it to go – or to “someplace else”?