Income Tax Preparation
Specializing in families, individuals, clergy, and non-profit organizations.
Compilation & Review Services
Specializing in non-profits, churches and religious organizations.
Agreed-Upon Procedures
The most common engagement in which the procedures to be performed are agreed upon by the accountant and the church. While Agreed-Upon Procedures are not called an “Audit” or a “Review” by a CPA, due to technical professional language, the financial areas of interest to the parties are in fact investigated, compared to a standard and the results are communicated in a written manner. Some of the benefits of Agreed Upon Procedures are: The process is customized to the specific needs of the Church, the procedures focus on relevant financial issues, and the results are a significant cost savings. Note financial statements might not meet the needs of an outside third party, such as a bank.
Service Levels
- Focus I: Recommended for churches with an attendance of 150 or fewer, and total offerings of $150,000 or less. Testing will include a selection and examination of a small sample of invoices to determine if proper documentation was included. Clergy salary and benefits review as outlined above. The offering collection process will be evaluated to identify possible internal control weaknesses. Donor receipt will be inspected for IRS substantiation compliance. The result is a written report of findings and suggestions for improvement for the Church.
- Focus II: Recommended for churches with attendance of 250 or fewer, and total offerings of $250,000 or less. Includes all of the items in the basic testing, plus the payment process will be evaluated to identify possible internal control weaknesses. Payments to clergy will be scrutinized to ensure proper reporting on the W-2. A month’s worth of offering collection sheets will be reviewed and reconciled to the stated monthly income. Year-end bank reconciliations will be analyzed for accuracy, timeliness, and outstanding items will be checked for clearing. IRS 1099 filings will be evaluated for completeness. The result is a written report of findings and suggestions for improvement for the Church.
- Focus III: Recommended for churches with attendance of more than 250 and total offerings of $250,000 or more. Based upon review of the Church’s financial statements and individual needs approximately 17 to 20 different tests will be performed in targeted areas including: balance sheet, income statement, offering income, expenses, payroll, IRS compliance, financial reports and general business areas. The result is a written report of findings and suggestions for improvement for the Church.
Presentations Topics Include:
- Paying Pastors Correctly
- Church Treasurer Fundamentals
- Avoiding Common Mistakes Made by Churches
- Year-End Reporting for Churches
- Income Tax Considerations for Pastors
- Maneuvering IRS Forms
- Fearless Budgeting
- Ins and Outs of Giving
Clergy Salary & Benefits Review
An in-depth review of the minister’s wages and benefits paid to ensure compliance with special IRS rules and regulations for this class of employees. Includes a review of the W-2, housing allowance, insurances paid for or on behalf of the minister, reimbursable expenses and retirement contributions.
Consultation
Verbal, written, or in-person advice.