Church Finance Committee Duties
A church financial committee can be composed of paid employees or volunteers. Create guidelines for financial committee members so they are aware of qualifications, expectations and responsibilities. Committee obligations should be in writing so committee members and church members are fully aware of the financial practices of the church.
The financial committee should be responsible for banking activities. Deposits should be made on a weekly or bi-weekly basis. Bank accounts need to be closely monitored to ensure there is enough money to pay expenses and that appropriate cash levels are being maintained. Reconciliation of bank accounts must also take place monthly. The committee should also make sure all checks are signed and handle payroll.
Budgets are necessary for any church to function properly, which is why it is important to recruit experienced accounting professionals. Financial committee members are responsible for creating a budget and ensuring that funds are being allocated properly. Budgets will need to be adjusted if donations drop or extra money comes in. Financial committee members should have the expertise needed to make responsible financial decisions.
All tax forms need to go out on a timely basis. Forms such as W-2s, Tax Form 941s and other reporting tools need to be maintained. The financial committee should also gather the information needed for quarterly and annual taxes that need to be prepared for the IRS. The committee also files all state, federal and local taxes. Historical data must be retained for a minimum of five years, so audit committees need to be responsible for maintaining the data.
Annual audits must take place. The financial committee should be responsible for preparing the forms and data that need to be presented to auditors. Donations are a church's main revenue stream, so the financial committee needs to record all donation activity to keep proper records. The financial committee should hold regular meetings with church elders to keep key people abreast of the church's financial state.