Churches have unique accounting needs that are different from those of businesses or individuals. From tracking online giving, donations and tithes to managing expenses for events and mission trips, choosing the right church accounting software can be a daunting task.
That’s where accounting software comes in handy. It not only simplifies the process but also provides valuable insights into the church’s financial health. But with so many options out there, how do you choose the best accounting software for your church?
In this post, we’ll take a look at the best church accounting software programs and help you understand the key features to consider when making your decision.
So, let’s get started!
Church Accounting Software
Accounting software can be an incredibly useful tool for businesses of all sizes, helping them to manage their finances more effectively and efficiently. However, accounting software for churches differs in several key ways from software used by regular businesses.
Firstly, churches have unique accounting needs that are different from those of businesses or individuals. Churches rely heavily on donations and tithes, which need to be tracked and reported on accurately. This means that church accounting software needs to have specific features to help manage donations and contributions, such as the ability to track donor information and generate reports on specific funds or projects.
Secondly, churches often operate as nonprofit organizations, which means that they have different tax requirements and regulations to follow. This means your church accounting system needs to have specific features to help manage tax-exempt status, such as the ability to track expenses related to tax-exempt activities and generate reports for tax filings.
Additionally, churches often have a large number of volunteers who contribute to the organization in various ways. This means that church accounting software needs to have features to manage volunteer time tracking and to help manage expenses related to volunteer activities.
Another key difference between church accounting software and accounting systems used by regular businesses is the need for software to integrate with other church management system. Churches often use a variety of software to manage different aspects of their operations, such as church database or event management software. The best church accounting software needs to be able to integrate with these other software tools to streamline financial management processes and reduce the need for manual data entry.
Finally, church finances are are often operating on limited budgets when it comes to investing in software and technology. This means that church accounting software needs to be affordable and easy to use, even for those with little accounting experience. Churches need software that is user-friendly and easy to navigate, with clear instructions for performing basic tasks like entering transactions and generating reports.
Overall, the best church accounting software differs from software used by regular businesses in several key ways, including the need to manage online giving, donations and contributions, tax-exempt status, volunteer management, integration with other church software, and affordability. By choosing software that meets these unique needs, churches can better manage their finances and make informed decisions about their resources.
Features to consider when choosing accounting software for your church
Choosing the right accounting software for your church can be a daunting task, especially with so many options available. Here are some key factors to consider when making your decision:
Cost
One of the most important factors to consider when choosing the best church accounting software is the cost. While some software options may seem affordable upfront, it’s important to consider any additional costs, such as ongoing subscription or maintenance fees, training, and support. It’s important to choose a software option that fits your church’s budget, while still providing the features and functionality you need.
For example, QuickBooks Nonprofit is a popular choice for churches, but it can be quite expensive, especially for smaller churches. On the other hand, Aplos offers affordable pricing that is based on the number of contacts in your database, making it a great choice for smaller churches.
Ease of Use
Another important factor to consider when choosing accounting software is ease of use. Church accounting software should be user-friendly and easy to navigate, even for those with little accounting experience. Look for software that has an intuitive interface and clear instructions for performing basic tasks like entering transactions and generating reports.
When evaluating ease of use, consider the following:
Interface: Choose a software with a clean and simple interface that is easy to navigate. It should be easy to find what you need and perform basic tasks like entering transactions and generating reports.
Training and support: Choose software that offers adequate training and support to help you get started. Some software options offer video tutorials, knowledge bases, and support forums.
Customization: Choose software that allows you to customize your interface and workflows to fit your specific needs. Customization can help you streamline your accounting process and improve efficiency.
Financial Reporting
Another key factor to consider when choosing accounting software for your church is reporting capabilities. You want software that can produce detailed financial reports that can help you track your church’s income and expenses. Look for software that can generate reports on specific funds or projects and allows you to customize reports according to your church’s needs.
When evaluating financial reporting capabilities, consider the following:
Types of reports: Look for software that can generate a wide range of financial reports, such as profit and loss statements, balance sheets, and budget reports.
Customization: Choose software that allows you to customize reports according to your church’s needs. For example, you may need to generate reports that track specific funds or projects.
Exporting data: Choose software that allows you to export your financial data to other formats, such as Excel or CSV. This can be helpful if you need to share your accurate financial records with other members of your church or with outside stakeholders and accounting professionals.
Grant Management
Grant managment is a feature offered by some accounting software options that helps nonprofits and other organizations manage grants that they have received. This feature allows organizations to track the details of the grant, such as the amount of funding, the purpose of the grant, and any requirements or restrictions associated with it. This can be useful for churches that receive grants, as it allows them to ensure that the funds are being used for their intended purposes and that they are meeting any requirements associated with the grant.
For example, if your church receives a grant to fund a specific project or program, grant management software can help you track the progress of the project and ensure that the funds are being used appropriately. This can help you keep track of any reporting requirements associated with the grant, such as progress reports or financial statements. Ensuring that your church is in compliance with the terms of the grant and can continue to receive funding in the future.
While grant management may not be a key consideration for all churches, it can be a valuable feature for those that receive grants or other forms of outside funding. If your church is likely to receive grants in the future, it may be worth considering accounting software options that include grant management features to help you better manage and track those funds.
Donation Tracking
Donation management is a feature offered by some accounting software options that allows churches to keep track of pledges made by their members or donors. This feature is especially useful for churches that rely on donations and need to monitor which pledges have been fulfilled and which ones are still outstanding.
With donation tracking, churches can easily input the details of each pledge, such as the amount donated, the date the pledge was made, and any specific purpose or designation for the pledge. The software will then generate reports that show which pledges have been fulfilled and which are still outstanding. This can be helpful for churches that need to plan their finances based on expected donations, as they can quickly see which pledges are coming in and which ones still need to be fulfilled.
In addition, pledge tracking can help churches identify donors who have a history of fulfilling their pledges, as well as those who may need a reminder to fulfill their commitment. This can help ensure that the church is receiving the donations it needs to support its operations and programs.
Online donations tracking can be particularly helpful for churches that have shifted to more online fundraising in the wake of the COVID-19 pandemic, or for churches that have members who prefer to donate online rather than in person. With this feature, churches can easily keep track of all of their donations, regardless of how they were made. This can help churches plan their finances more effectively and ensure that they are receiving the donations they need to support their operations and programs.
Overall, pledge tracking can be a valuable feature for churches that rely on donations to support their work. It allows churches to keep track of pledges and ensure that they are receiving the donations they need to continue their mission. If your church relies heavily on donations, it may be worth considering accounting software options that include pledge tracking features to help you better manage your finances.
Integration with other church management software
Finally, consider whether the accounting system integrates with other church management software that you may be using, such as church database or event management software. Integration can help streamline your financial management processes and reduce the need for manual data entry.
When evaluating integration capabilities, consider the following:
Compatibility: Look for software that is compatible with other church management software that you are currently using. For example, Aplos integrates with popular church management software like Planning Center and Breeze.
Functionality: Choose software that offers the integration features that you need. For example, you may need software that can automatically import donation data from your church database.
Support: Choose software that offers adequate support for integration. Some software options may offer support forums or documentation to help you get started.
By considering these factors, you can choose accounting software that meets your church’s specific needs and budget.
Best Church Accounting Software
Now we know what features to look for, lets take a deep dive into 4 options that could be the right church accounting software for you.
QuickBooks Nonprofit
QuickBooks Nonprofit is a popular choice for churches because of its user-friendly interface and range of features tailored for nonprofit organizations. Here are some of the key features, pros, and cons of QuickBooks Nonprofit:
Features:
Customizable chart of accounts that allows you to categorize transactions according to your church’s specific needs
Ability to track donations and expenses, generate financial reports, and payroll management
Integration with popular church management software like FellowshipOne, Planning Center, and Breeze
Pros:
User-friendly interface that is easy to navigate, even for those with little church accounting programs experience
A wide range of features that are tailored for nonprofit organizations, including churches
Customizable chart of accounts that allows you to categorize transactions according to your church’s specific needs
Cons:
Expensive subscription-based pricing model that can be difficult for small churches with limited budgets
Limited customer support, with only phone and email support available
Some users have reported issues with the software’s stability and performance
Overall, QuickBooks Nonprofit is a powerful accounting software option for churches that offers a range of features tailored for nonprofits. However, the subscription-based pricing model and limited customer support can be a drawback for smaller churches.
Aplos
Aplos is a cloud-based accounting software that is specifically designed for churches and other nonprofit organizations. Here are some of the key features, pros, and cons of Aplos:
Features:
Simple and intuitive interface that is easy to navigate, even for those with little accounting experience
Customizable chart of accounts that allows you to categorize transactions according to your church’s specific needs
Integration with popular church management software like Planning Center and Breeze
Ability to track donations, manage budgets, and generate financial reports
Pros:
Affordable pricing model that is based on the number of contacts in your database, making it a great accounting software for small churches
User-friendly interface that is easy to navigate, even for those with little accounting experience
Integration with popular church management software like Planning Center and Breeze
Cons:
Limited payroll features, with no built-in payroll system available
Limited customer support, with no phone support available
Some users have reported issues with the software’s speed and performance
Overall, Aplos is a great accounting software option for churches that offers a range of features at an affordable price. However, the lack of payroll features and limited customer support may be a drawback for some churches.
ChurchTrac
ChurchTrac is a cloud-based church management software that includes accounting features. Here are some of the key features, pros, and cons of ChurchTrac:
Features:
Customizable chart of accounts that allows you to categorize transactions according to your church’s specific needs
Ability to track donations, manage budgets, and generate financial reports
Integration with popular church management software like Planning Center and MailChimp
Built-in payroll system that allows you to manage staff salaries and benefits
Pros:
Affordable pricing model that includes all features, regardless of the size of your church
User-friendly interface that is easy to navigate, even for those with little accounting experience
Integration with popular church management software like Planning Center and MailChimp
Cons:
Limited customization options for reports
Limited customer support, with no phone support available
Some users have reported issues with the software’s stability and performance
Overall, ChurchTrac is a great option for churches that want an affordable all-in-one church management software that includes accounting features. However, the limited customization options for reports and customer support may be a drawback for some churches.
PowerChurch Plus
PowerChurch Plus is a comprehensive church management software that includes accounting features. Here are some of the key features, pros, and cons of PowerChurch Plus:
Features:
Ability to track donations, manage budgets, and generate financial reports
Built-in payroll system that allows you to manage staff salaries and benefits
Integration with popular church management software like Church Helpmate and CDM+
Customizable chart of accounts that allows you to categorize transactions according to your church’s specific needs
Pros:
Powerchurch plus is a comprehensive church management software solution that includes accounting features, making it a great all-in-one solution for churches
Powerful reporting capabilities that allow you to track your church’s financial health
Customizable chart of accounts that allows you to categorize transactions according to your church’s specific needs
Built-in payroll system that allows you to manage staff salaries and benefits
Cons:
Steep learning curve and more complex interface than other software options on this list
Expensive pricing model that may be difficult for smaller churches with limited budgets
Limited customer support, with only email and support ticket options available
Overall, PowerChurch Plus is a powerful all-in-one solution for churches that includes accounting features. Its built-in payroll system and powerful reporting capabilities make it a great choice for churches with more complex financial needs. However, its steep learning curve and more complex interface may be a drawback for churches with less accounting experience. Additionally, its relatively expensive pricing model may be difficult for smaller churches with limited budgets.
Church Accounting Software – FAQ
What is accounting software for churches?
Accounting software for churches is a software tool that helps churches manage their finances. It allows churches to track donations, expenses, and generate financial reports. Accounting software for churches is designed with the unique needs of nonprofit organizations in mind, and often includes features tailored to churches and other religious organizations.
Can I use quickbooks for a church?
Yes, QuickBooks offers a specialized accounting software called “QuickBooks Nonprofit” that can be used by churches and other nonprofit organizations. QuickBooks Nonprofit includes features tailored for nonprofits, such as the ability to track donations, manage budgets, generate financial reports, and manage payroll. It also offers a customizable chart of accounts, allowing churches to categorize transactions according to their specific needs. However, it’s important to note that QuickBooks Nonprofit can be relatively expensive, and smaller churches with limited budgets may want to consider other options.
What are some of the key features of church accounting software?
Some of the key features of church accounting software include the ability to track donations, manage budgets, generate financial reports, and integrate with other church management software. Church accounting software may also have features to help manage volunteer time tracking and tax-exempt status.
What are some of the factors to consider when choosing church accounting software?
Some of the factors to consider when choosing church accounting software include cost, ease of use, reporting capabilities, and integration with other church management software. It’s important to choose software that fits your church’s budget, while still providing the features and functionality you need. Additionally, software should be user-friendly and easy to navigate, even for those with little accounting experience.
What are some of the top church accounting software options available?
Some of the top church accounting software options available include QuickBooks Nonprofit, Aplos, and ChurchTrac. Each of these options has its own unique features and pricing models, so it’s important to evaluate each one carefully to determine which one is the best fit for your church’s needs.
How can accounting software help churches better manage their finances?
Accounting software can help churches better manage their finances by providing a centralized platform to track donations, expenses, and generate financial reports. This can help churches make informed financial decisions and better manage their resources. Additionally, accounting software can help streamline financial management processes and reduce the need for manual data entry.
Is it necessary for churches to have accounting software?
While it’s not necessarily required for churches to have accounting software, it can be a valuable tool for managing finances more effectively and efficiently. Accounting software can help churches track donations, expenses, and generate financial reports, providing a centralized platform for financial management. It can also help churches make informed financial decisions and better manage their resources.
Are churches required to use fund accounting software?
No, churches are not required to use fund accounting. Fund accounting is a specialized accounting method used by nonprofits and government entities to track and report on funds that have been designated for specific purposes or projects. While it can be a useful tool for churches to manage their finances, it is not required by law or regulations.
However, churches that are registered as nonprofits with the IRS may be required to follow specific accounting and reporting guidelines in order to maintain their tax-exempt status. It’s important for churches to consult with a qualified accountant or tax professional to determine the best accounting practices for their specific situation.
Conclusion
In conclusion, choosing the right accounting software for your church is an important decision that can have a significant impact on your financial management processes. When evaluating software options, it’s important to consider factors such as cost, ease of use, reporting capabilities, and integration with other church management software.
After researching several options, we recommend QuickBooks Nonprofit as the best accounting software for churches. QuickBooks Nonprofit is designed specifically for nonprofits and offers a range of features tailored for churches. It includes a customizable chart of accounts that allows you to categorize transactions according to your church’s specific needs, the ability to track donations and expenses, generate financial reports, and manage payroll. It also integrates with popular church management software like FellowshipOne, Planning Center, and Breeze.
One of the key factors in our recommendation of QuickBooks Nonprofit is its user-friendly interface that is easy to navigate, even for those with little accounting experience. It also offers a wide range of features that are tailored for nonprofit organizations, including churches. While the subscription-based pricing model and limited customer support can be a drawback for smaller churches, QuickBooks Nonprofit is a powerful option that is sure to meet the needs of most church accounting needs.
