Church Business
Administrators, wear so many hats covering so many diverse departments, it can
be a real challenge to balance it all. There are only so many hours in the day
and sometimes it just does not get done. Daily “to do” lists can be created but
with so many areas demanding their time, the Church Administrator can be
distracted and not catch the important core essentials that keep the business of
the church operating with smoothness. Here are 5 core essentials I believe every
Church Administrator must perform in providing excellence in church finance.
Transparency in
Financials
The Church Business Administrator must develop a sense of
transparency to the church that everything is visible to all. This does not
mean you must show every person every part of the church financials. Presenting
transparency to the church at large will eventually build trust and most will
not even care to see it all knowing that everything is in order. State that you
have an open-door policy and anyone at any time can see the church financials.
Obviously, you must first HAVE all the financials in order, to present
transparency. Be intentional in becoming transparent. Start by reporting key
numbers that the church needs to know to ensure them the finances are in order.
Relevant Reporting
Research and find what the church wants to see each month
and then report it in a timely manner. Look for stats that have meaning and that
show the direction the church is headed, even if it is decline. Pull together a
summary dashboard report that gives the state of the church financially and
operationally that is easy to read and understandable. Include items like
giving, attendance, special fund giving, cash flow, income / expense, emergency
fund balance and other stats pertinent to the church. Include stats from all
areas of church business administration at some point in reporting.
Annual Inspection
Do not rely on your own judgement or that of a committee
that everything is in order financially and operationally. Use the services of
a third party to inspect your work every year. There are different levels of
inspection like compilation, review, and audit. Depending on the churches
situation, choose one of those levels. For example, if the church is debt
financed, the bank may require an audit. Conducting an annual inspection
further enhances your transparency and further builds the trust of the
congregants. Make the results of the inspection available to leadership and the
church if so desired.
Promote Giving
Do not assume every person knows how to give to the church.
With the tech age, ways to give not only expanded but also got complicated for
many donors. If the church uses state of the art giving like Text to Give, make
sure there are instructions easily accessible for those first-time users.
Remind the church congregants about how to give and include it as a regular
part of church promotions. With any special giving emphasis, include the ways
to give with the presentation.
Trends and
Forecasting
This one ties the other core essentials together. Using
meaningful metrics in church administration is key. Track everything in church
finance using that info to build useful metrics that give the church a
wide-angle view. Tracking will build the trends needed to see where the church
has been, where they are currently, and where they are headed, financially
speaking. Forecasting is not predicting the future. It simply gives the church
a picture of where the church may be headed. Include in your tracking stats items
like per capita, average monthly giving, budget history, and attendance.
By Rick Cadden CCA, CCBA
Associate Administrator, First Baptist Marble Falls, Texas
Speaker and Trainer in Church Business Administration