Our church community faces unprecedented events. For some churches, the current crisis falls at the start of a new fiscal year and for others, it’s right in the middle. How, as a church, do we reassess our finances and budget to face this precarious time?
If we know nothing else about the crisis around this virus, we know there will be some impact to financials – coming in and going out! Taking the time to update your budget will ensure that decisions are thought through, intentional, and appropriate for your situation.
Consider a quarterly budget approach. Here are a few reasons to consider why a quarterly budget may be right to implement:
There is flexibility based on the season. You can plan and forecast for how the COVID-19 crisis and the aftereffects will impact your church’s finances.
It allows you to anticipate and adjust to financial changes sooner. If you have not adjusted your budget yet, you likely will need to now!
Finances and spending are discussed in detail more often by leadership.
The church listens to God and adapts. In this time, perhaps the Lord is preparing your church to be a voice of hope for many in despair in your community. Or the Lord may be asking you to consider giving away more benevolence to those in need. The quarterly budget is a tool that makes changes like these easier to update throughout the year.
It’s much easier than you think. It is easy to create if you have your annual budget template already created or access to the previous year’s spending. Compare expenses from the prior quarter and this quarter last year to help make the determination for the amount needed for each category.
Forecasting tools may be helpful in planning for your budget in uncertain times. For those using Quick Books Advanced, there’s a forecasting tool called Float that is very helpful! Float assists in the management of funds and cash flow, and they are running a free trial until May 31, 2020.
If you want to learn more about Quarterly Budgeting, check out this blog post or get in contact! We’d love to partner with your church.
Please reach out if you or your church needs specific prayer during this time. As your partner in ministry, we work to expand God's Kingdom and want to partner with you through this season as we always have.
This blog post is part of an ongoing series to keep churches informed of the resources available. Here are more resources to explore:
By: Bill O’Connell, CPA
Published March 16, 2020
By: Allison Michaud, CPA
Published March 17, 2020