Introduction:
- Welcome to episode 57 of the Bookkeeping with a Purpose podcast!
- Exploring the complexities of federal regulations, particularly regarding church employees and overtime rules.
- I stumbled upon something fascinating recently, and you know me, I can’t keep cool discoveries to myself. So, buckle up for a journey into the world of church finance regulations!
- Federal regulations often lack clarity, especially when it comes to topics like church employees and overtime rules.
- Sparked by a question about a past episode I recorded on church employees and overtime rules, recent research uncovered new insights, prompting a deeper dive into the subject. Spoiler alert: it’s not as straightforward as it seems.
Segment 1: Quote of the Day
- Drawing inspiration from Greek philosopher Aristotle: “We are what we repeatedly do. Excellence then, is not an act, but a habit.”
Segment 2: Understanding Fact Sheet #14A
- Exploring Fact Sheet #14A from the Wage & Hour Division of the US Department of Labor.
- Highlighting protections offered by the Fair Labor Standards Act (FLSA), including minimum wage, overtime regulations, record-keeping requirements, and child labor standards.
Segment 3: Coverage Criteria
- Diving into two key ways employees are covered under the FLSA.
- Enterprise Coverage: Employees of businesses generating at least $500,000 in annual sales revenue, with exceptions for non-profit organizations unless engaged in qualifying commercial activities.
- Individual Coverage: Employees engaged in interstate commerce or closely-related processes essential to such production.
Segment 4: Application to Church Employees
- Demonstrating how church employees may fall under FLSA protections, particularly through involvement in interstate commerce-related activities.
- Debunking common misconceptions and emphasizing compliance with overtime regulations, minimum wage rules, record-keeping requirements, and child labor standards.
Segment 5: Volunteer Guidelines
- Clarifying volunteer regulations outlined in Fact Sheet #14A:
- Restrictions on volunteering in commercial activities.
- Prohibitions against displacing paid employees with volunteers.
- Limitations on paid employees volunteering for similar services performed in their job roles.
Episode Support Links
Fact Sheet #14A: Non-Profit Organizations and the Fair Labor Standards Act (FLSA)
xo, Michelle Next Steps: Grab Your Freebies: 6 Step Process to Doing Business God's Way biz owners FREE QuickStart Guide to Church Finances everybodyLooking for a group of like-minded people that want to keep Jesus at the center of everything they do?
Join the BEST FaceBook group for church finances at Church Bookkeeping & Clergy Tax FaceBook Group
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ Bookkeepers Inner Circle
Need an extra hand with an immediate situation? Schedule a Consultation:In Episode 42 I talked to you about 3 steps to help you create a sound budget. In today's episode I want to help you take the next step in the budgeting process - ensuring that every program you created a budget line item for is carried out with excellence so that you can actually stay within that budget! Listen in to see how you can continue to honor God in the budget process.
xo, Michelle Next Steps: Grab Your Freebies:
https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybodyLooking for a group of like-minded people that want to keep Jesus at the center of everything they do?
Join the BEST FaceBook group for church finances at https://www.facebook.com/groups/churchbookkeepingandclergytax
Need an extra hand with an immediate situation? Schedule a Consultation:Direct from the IRS website:
A minister's housing allowance (sometimes called a parsonage allowance or a rental allowance) is excludable from gross income for income tax purposes but not for self-employment tax purposes.
If you receive as part of your salary (for services as a minister) an amount officially designated (in advance of payment) as a housing allowance, and the amount isn’t more than reasonable pay for your services, you can exclude from gross income the lesser of the following amounts:
- the amount officially designated (in advance of payment) as a housing allowance;
- the amount actually used to provide or rent a home; or
- the fair market rental value of the home (including furnishings, utilities, garage, etc.).
The payments officially designated as a housing allowance must be used in the year received.
Include any amount of the allowance that you can't exclude as wages on line 1a of Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors. Enter “Excess allowance” and the amount on the dotted line next to line 1a.
If your congregation furnishes housing in kind as pay for your services as a minister instead of a housing allowance, you may exclude the fair market rental value of the housing from income, but you must include the fair market rental value of the housing in net earnings from self-employment for self-employment tax purposes.
For more information on a minister’s housing allowance, refer to Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers.
For information on earnings for clergy and reporting of self-employment tax, refer to Tax Topic 417, Earnings for Clergy.
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybodyLooking for a group of like-minded people that want to keep Jesus at the center of everything they do?
Join the BEST FaceBook group for church finances at https://www.facebook.com/groups/churchbookkeepingandclergytax
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Need an extra hand with an immediate situation? Schedule a Consultation:Knowing which form to use can be confusing.
In today's episode I go over
1. who should receive a Form 1099
2. which Form 1099 do you send
3. special circumstances that determine which form to use
4. e-filing requirements
5. filing deadlines
I hope this helps!
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybodyLooking for a group of like-minded people that want to keep Jesus at the center of everything they do?
Join the BEST FaceBook group for church finances at https://www.facebook.com/groups/churchbookkeepingandclergytax
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Need an extra hand with an immediate situation? Schedule a Consultation:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybodyLooking for a group of like-minded people that want to keep Jesus at the center of everything they do?
Join the BEST FaceBook group for church finances at https://www.facebook.com/groups/churchbookkeepingandclergytax
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Need an extra hand with an immediate situation? Schedule a Consultation:The IRS has announced the tax opening date for 2024.
In today's episode I share a list of documents you need to start gathering together to help make the tax prep process smoother for you and your tax preparer.
This week's Courageous Obedience Moment is to look for God and how His character is revealed in Scripture instead of reading the Bible with the intent of looking for what the Word has to say to you. Look for God!
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybodyLooking for a group of like-minded people that want to keep Jesus at the center of everything they do?
Join the BEST FaceBook group for church finances at https://www.facebook.com/groups/churchbookkeepingandclergytax
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Need an extra helping hand with an immediate situation? Schedule a Consultation:IRS blurb for your annual contribution statements
" Pursuant to Internal Revenue Code requirements for substantiation of charitable deductions, no goods or services were provided in return for the Tax Deductible contributions"
For QuickBooks Desktop:
" Unless otherwise noted, the only good or services provided are intangible religious benefits"
Records that should be retained for 5 years:
- Offering Envelopes (unless you put a disclaimer advising members to request any necessary changes within a specified time period on the annual statement)
- Annual contribution statements
- Written acknowledgment of charitable contributions
- Written verification of participation in short-term mission projects approved by the church
- Substantiation of business related expenses that are a part of an Accountable Reimbursement Plan
- Minister job descriptions and Housing designations
- Copies of IRS forms (ex. 941, W-2's, 990-T, W-4's, 1099's)
Records to keep until Jesus comes back :-)
- Any and all legal documents for the church (incl. Articles of Incorporation, Constitution & Bylaws, Tax exemption records)
- Church Policies, Job descriptions, Compensation Package data, Accountable Reimbursement Plans & Safety Net Housing Allowance docs if you have one
- Correspondence from the taxing authorities incl. IRS, State and local authorities (incl. Form 1023 application, SS-4 EIN number, Form 8274)
Courageous Obedience Moment:
From Calm Your Anxiety by Robert J. Morgan
"Equipping yourself with Scriptures will help your mind be trained to move from panic to peace, from worry to worship, and from anxiety to confident trust. Identify three scriptures that will help you make these movements. Recite them each day until you've memorized them."
Be blessed my friend.
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybodyLooking for a group of like-minded people that want to keep Jesus at the center of everything they do?
You can join the BEST FaceBook group for churches at https://www.facebook.com/groups/churchbookkeepingandclergytax
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Schedule a Consultation:With the end of year upon us, let's take the time to review what worked well this year, and what didn't. Then take steps to make next year even better!
Here are some links to resources that can help increase your knowledge in church finances.
www.bookkeepersinnercircle.com
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybodyEnd of year special -- ONLY $10/month! Special pricing ends 12.31.23
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Schedule a Consultation:Communication. You hear it mentioned when you're in a relationship. But communication is also vital to your business success. Today I talk about 3 areas of communication that you need to pay attention to in order to experience the success you desire in your service to the local church.
I open with a story about a remarkable lady who works in her church office and has some unique challenges.
I hope this episode blesses you.
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybodymichelle@churchfinances.org
Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybodyLooking for a group of like-minded people that want to keep Jesus at the center of everything they do?
If you’re a looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Schedule a Consultation:I hope this information is helpful to you.
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybodyLooking for a group of like-minded people that want to keep Jesus at the center of everything they do?
If you’re a business owner looking for help serving your clients with excellence, check out my Mastermind program The Bookkeepers Next Level @ www.bookkeepersNextLevel.com
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Schedule a Consultation:https://churchfinances.org/consult
Regardless of what's going on in your life or your business, there is ALWAYS something to be thankful for.
In today's episode, I go over some items that we should all be thankful for this year.
Thanks for taking a listen and I hope you have a very Happy Thanksgiving!
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/consult
Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytaxhttps://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation: Join the FB Community:Today we will be talking about things we want to accomplish in this last quarter. We will talk about 4 tasks I want you to do:
1. Tell your members about donation deadlines
2. Understand the $250 rule
3. Locate your 501c3 letter
4. Review your insurance policy
I hope this gets you off to a good start on checking off those year-end tasks.
As always, thanks for sharing your time with me.
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation: Join the FB Community:In todays episode I walk you through three reasons why generally all love offerings to staff members are considered taxable income by the IRS.
It can be frustrating, but the IRS is clear that "income from whatever source derived" is taxable.
Take a listen to see what else the IRS has to say on the topic.
As always, thanks for taking time to listen. I truly appreciate it!
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation: Join the FB Community:Wahoo! We are back in podcast land and I am SO happy! Thanks for your patience while I worked through a few obstacles.
Today we are talking about steps to help you in the budgeting process.
They are:
1. Identify & Evaluate the programs and activities most important to your church
2. Define your Church Compensation Philosophy
3. Give your best estimate of the funds you will need to accomplish your mission
As always, I thank you SO much for spending some of your valuable time with me. I look forward to talking with you again soon!
xo, Michelle Next Steps: Grab Your Freebies:
https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/consult
Join the FB Community:www.facebook.com/groups/churchbookkeepingandclergytax
https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation: Join the FB Community:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation: Join the FB Community:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation: Join the FB Community:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/consult church staff/volunteer
Join the FB Community:Thank you for joining me as I interviewed my podcast coach!
In this episode Ms. Stefanie Gass shares her 7 step Spiritual Battle plan with us and even provides a workbook to help you! Check out the link below.
7-STEP SPIRITUAL BATTLE PLAN
www.stefaniegass.com/battleplan
To join my Private coaching Community The Bookkeepers Inner Circle visit www.bookkeepersinnercircle.com xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community:Today I discuss the Top 5 books that have helped me on my journey and I hope they will be helpful to you as well.
Also.....
I announce my NEW private coaching community called The Bookkeeper Inner Circle! I am SOOOOO excited about this! I seriously wish there was something like this available when I started in church finances.
To find out how you can go from confused and frustrated with church finances, to becoming the confident and capable finance expert you were meant to be, check out the group at www.bookkeepersinnercircle.com and join today! You only have 7 days to join as I will close the doors on August 1st so I can give my full attention to the hungry learners who sign up this week.
Again, go to www.bookkeeperinnercircle.com to get more information and to sign up!
I hope to see you in the Bookkeepers Inner Circle soon! xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/consult
Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytaxIn order to understand the Word of God, sometimes a little extra help is needed.
Bible reference books are an invaluable help in accomplishing this.
In today's episode, I give you a brief summary of the different kinds of resources available to help you choose which one is the right fit for you.
I hope this blesses you!
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/consult
Join the FB Community:www.facebook.com/groups/churchbookkeepingandclergytax
Which Bible is the right one for you?
The one that you will actually read and can understand. It does you no good to have a collection of Bibles that simply collect dust.
Furthermore, NO ONE can tell you which translation is the best because no one else has your brain, your attention span, your comprehension.
The point is to pick one. Read it. Meditate on it. Apply the truths to your life and allow Holy Spirit to transform your mind and your life through the power of the written Word.
Take a listen and also learn about the newest specialty Bible, the Filament Bible.
If you missed last weeks download on Bible Translations, you can get it here at www.churchfinances.org/translations
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community:As promised, here are the links from today's episode:
https://www.gotquestions.org/Passion-Translation.html
Mike Winger Series on the TPT
https://www.youtube.com/playlist?list=PLZ3iRMLYFlHvXha4rjCj1Po0WLQc_jGGW
FREEBIE
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community:Today I share what God has laid on my heart for a Summer Series and other podcast news/updates.
Thanks for listening!
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community:www.facebook.com/groups/churchbookkeepingandclergytax
Since it’s summertime and the year is ½ over, in today’s episode we are going to be talking about performing a mid-year review for your church and the three areas I think you need to take a look at.
Just like many businesses do an annual performance review on their employees, churches should also do a mid-year review on three important areas that may need to be adjusted:
Let’s take a look at each one and why you should take a look at these now instead of at the end of the year.
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community:In this episode, we will discuss the three main points that play a crucial role in ensuring client satisfaction. Yes – it is possible to have happy clients 😉 By listening to your clients, solving their problems, and leading them toward success, you can create long-lasting relationships and drive positive outcomes.
Episode Outline:
1. The Power of Listening to Your Clients
a. Understanding the Importance of Active Listening
b. Techniques for Active Listening
c. Building Trust and Empathy through Listening
2. Solving Client Problems: Going Above and Beyond
a. Identifying and Prioritizing Client Needs
b. Implementing Effective Problem-Solving Strategies
c. Communicating Solutions Clearly and Timely
3. Leading Clients Toward Success
a. Being a Trusted Advisor and Strategic Partner
b. Setting Realistic Expectations
c. Providing Ongoing Guidance and Support
Remember, happy clients are the cornerstone of a successful business.
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytax
Benevolence Funds, specifically, how do you handle them when collecting for a specific person in need will be discussed in today's episode.
The IRS has set guidelines regarding this situation and we will cover those today including Revenue Ruling 62-113.
We discussed the IRS cap on benevolence being given before it becomes taxable to the receiver in 2023.
We also touched upon the fact that ANY benevolence given to employees or members of the employees family is not considered true benevolence and IS reported as taxable income.
Another point we covered was making sure that your benevolence procedures are followed in compliance with your official Benevolence policy.
Additionally, we verified that donations earmarked for an individual are NOT tax deductible to the donor UNLESS there is an understanding that all donations received will be used by the church in a manner that is consistent with their purpose and mission and may be used for a different purpose should the church decide. The church must retain total control of how the funds are spent, regardless of the donor's request.
Take a listen to learn all the details! xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytax
Knowing who you are, what you're best at, and what you enjoy doing the most will help you to define who your business will serve. We will go over 6 things that will help you define the pillars of your business and how you will learn, market and grow your business.
Take a listen and I hope this blesses you and helps you to define the direction you want to go.
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytaxChurches sometimes collect “love offerings” from the congregation for a pastor, visiting minister, volunteer, or staff member in recognition of services rendered.
There really is a lot of confusion over this topic – so much so that pastors from both large and small churches have been prosecuted and convicted of tax evasion over unreported love offerings.
One of the most interesting cases was Felton vs. Commissioner TC Memo 2018-168
the Tax Court held that Rev. Wayne R. Felton of Holy Christian Church in St. Paul Minn. received taxable compensation from members of his congregation rather than personal gifts, despite the contributions' designation as gifts,
Consequently, the Tax Court applied a four-factor test drawn from case law to objectively determine the donors' intent:
- Whether the donations were provided in exchange for services
- Whether the minister or other church authorities requested the donations;
- Whether the donations were part of a routine, highly structured program and given by individual church members or the congregation as a whole
- Whether the minister received a separate salary from the church, and, if so, its amount in relation to the donations
https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytaxIf you're ready to get unstock and live out the calling the Lord has on your life, take a listen to this episode and see how God shows up!
xo, Michelle Next Steps: Grab Your Freebies:https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Schedule a Consultation:https://churchfinances.org/bizconsult biz owners
https://churchfinances.org/consult church staff/volunteer
Join the FB Community:When it comes to church finances, it's not just about balancing the books or paying the bills on time – which are absolutely very important by the way. It's also about equipping our congregation members with the knowledge and tools they need to be responsible stewards of their own finances. By building a financially literate church community, we can help individuals manage their money wisely, reduce financial stress, and enable greater generosity. So, let's dive into some practical strategies and resources for achieving this goal.
xo, Michelle Next Steps: Grab Your Freebies:
https://churchfinances.ck.page/6steps biz owners
https://churchfinances.ck.page/guide everybody Work with me!Church Church Consultation:
www.churchfinances.org/consult
Business Consultation
www.churchfinances.org/bizconsult
Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytax
Welcome to the "Bookkeeping with a Purpose," podcast.
In today’s episode we are going to be talking about the Armor of God and how it applies to you as a business owner. I will give you practical examples of how to get up, dress up and never give up on the dream God has given you for your business.
We will cover each piece of the Armor:
* Belt of Truth
* Breastplate of Righteousness
* Shoes of Peace
* Shield of Faith
* Helmet of Salvation
* Sword of the Spirit
Covering it all in the power of prayer!
I am super-excited to share today’s truths with you so let’s get going!
I pray this blesses you!
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps
https://churchfinances.ck.page/guide
Learn More:
Join the FB Community:
Welcome to the "Bookkeeping with a Purpose," podcast.
Today's topic is Why pledging money to your church is significant.
We will explore the principles behind church giving and its impact on the church, personal growth and your community.
Key Points:
Stewardship:
We’ll touch on how stewardship is a key discipline mentioned through the Bible.
Gratitude:
Expressing appreciation for spiritual guidance, support, and fellowship can be accomplished by contributing financially.
Compassion and Social Responsibility:
Church funds support charitable initiatives and outreach programs which can help to actively create positive change and help those in need. Pledging money as a means of expressing compassion and fulfilling social responsibilities is a great way to help make the world a better place.
The Courts are also taking charitable pledges seriously. We will briefly talk about a couple of the more recent court decisions involving pledges that individuals tried to default on. This part is REALLY interesting!
So, whether it's through stewardship, gratitude, or compassion for others, pledging money to your church can be a powerful way to align your values with your actions. It enables you to support the spiritual and material well-being of your community while nurturing your own spiritual journey.
I pray this blesses you!
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/6steps
https://churchfinances.ck.page/guide
Learn More:
Join the FB Community:
https://churchfinances.ck.page/6steps
https://churchfinances.ck.page/guide Learn More: www.churchfinances.org Email Me: michelle@churchfinances.org Want to work with me:www.hallmarktax.com (outsourced services)
https://churchfinances.as.me/schedule.php (church consultation)
Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytax (EVERYBODY)There are a few steps involved in obtaining this designation.
You can check out https://www.irs.gov/tax-professionals/enrolled-agents/enrolled-agents-frequently-asked-questions for more information.
xo, Michelle Next Steps: Grab Your Freebies: https://churchfinances.ck.page/guide Learn More: www.churchfinances.org Email Me: michelle@churchfinances.org Want to work with me: www.hallmarktax.com Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytax (EVERYBODY)Managing payroll for your church can be a complex task, and it's important to choose the right payroll processor to ensure that your church is in compliance with tax laws and regulations. As you have already heard me say, not everyone who does payroll knows how to properly process church payroll. It is a specialized area of payroll and you need to choose wisely before trusting such an important aspect of your churches finances and tax compliance to another company. I’m going to give you 6 checkmarks you need to have before selecting your payroll processor.
When choosing a church payroll processor look for the following:
- experience
- compliance
- customer service
- security
- flexibility
- cost-effectiveness.
xo,
Michelle
Next Steps: Grab Your Freebies: https://churchfinances.ck.page/guide Learn More: www.churchfinances.org Email Me: michelle@churchfinances.org Want to work with me: www.hallmarktax.com Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytax (EVERYBODY)
Hey there! On today’s episode I am going to cover 6 different service areas a bookkeeping firm can offer. But first, let’s define the term “bookkeeping”. Bookkeeping is the process of recording, categorizing, and reconciling financial transactions of a business. It includes tasks like recording invoices A/P, payments A/R, receipts, and bank statements. And why is what we do is important? because it helps organizations and businesses to keep track of their financial records, make informed business decisions, and meet legal and tax obligations.
So let’s see what services you can offer in your bookkeeping business…. Let’s get learning!
Although the chances of your church being audited by the IRS are slim, they do happen. One way to help squelch the odds of that happening is to have your church perform an ANNUAL Internal church audit. Most churches are not large enough to warrant the cost of a full-blown external CPA audit, so an internal audit is just the ticket to help ensure ongoing accountability, transparency and compliance.
In today’s episode we are going to cover 4 reasons to perform an internal audit AND some areas that I highly recommend that you include in such an audit.
Reasons to perform an internal audit:
1. Ensuring Financial Accountability
2. Strengthening Internal Controls
3. Demonstrating Transparency
4. Compliance with Legal and Regulatory Requirements
Areas to include in your audit:
1. Financial statement reporting (monthly reports)
2. Cash receipts (including counting offerings)
3. Donation recording
4. Cash disbursements (petty cash fund?)
5. Bank statement reconciliation
6. Assets (bldg./land/equipment) & Insurance policies
7. Accounts Payable (incl. any outstanding mortgages/notes payable)
8. Personnel (EE records/files/proper classification) & Payroll filing requirements
And then end the audit with goals you have for the upcoming year.
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/guide
Learn More:www.churchfinances.org
Email Me:michelle@churchfinances.org
Want to work with me:www.hallmarktax.com
Join the FB Community:
www.facebook.com/groups/churchbookkeepingandclergytax (EVERYBODY)
- computer
- printer
- scanner
- software
- ergonomic equipment
In today’s episode, I am going to touch on why I believe it’s vital that accountability in the church NOT be optional and I will give you practical and tactical steps to help ensure accountability in 5 areas of your church.
Some ways that we can foster/create accountability within the church include:
EVERY church office should have a Finance Policy & Procedure Guide. Here are just three areas that need to be addressed in a formal P & P guide:
Contributions
Check writing/bill payment
Reimbursement
As we all well know – Money Matters. And how we handle our finances ( and ESPECIALLY the Lord’s finances) says a LOT about the condition of our hearts.
xo, Michelle Next Steps: Grab Your Freebies: https://churchfinances.ck.page/guide Learn More: www.churchfinances.org Email Me: michelle@churchfinances.org Want to work with me: www.hallmarktax.com Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytax
Welcome to another episode of the Bookkeeping with a Purpose podcast. Today I will be discussing 3 Tips I believe every business owner needs to do to ensure success. These tips include:
Tip 1: Make your estimated tax payments One important aspect of running a successful business is paying your taxes and paying them on time. You wouldn’t think that you would have to tell bookkeeping professionals this, but everyone is at a different experience level and I want to make sure that any newbies here get off on the right start. Many business owners tend to overlook this aspect of their business, which can lead to serious financial and legal consequences. To avoid this, it's crucial to make your estimated tax payments and make them on time. By doing this, you'll be able to avoid penalties and interest charges that can quickly add up. Because we NEVER want to give the gov’t more than they are legally due. Here are fours ways you can calculate your estimated tax payments- Use IRS Form 1040-ES
- Calculate based on prior's year tax liability
- Use an online tax calculator
- Work with a tax professional
- Believe in yourself
- Focus on your goals
- Don't take it personally
- Surround yourself with positive people
- Use criticism constructively
- Stay motivated
I hope that you are blessed from listening today.
xo, Michelle Next Steps: Grab Your Freebies: https://churchfinances.ck.page/guide Learn More: www.churchfinances.org Email Me:Info@churchfinances.org
Want to work with me: www.hallmarktax.com,
The man who had the greatest impact on my life passed away today and in this extra episode I share how he did that. I hope that you are blessed.
xo
Michelle
Payroll taxes can be confusing to many. Especially if you're not familiar with all the filing requirements. In this episode, I walk you through the Federal payroll forms required for each employee along with the payroll tax filing requirements for the church.
We will cover Employee forms W-4 and I-9 as well as the Employer filing requirements for Form 941.
The forms we will discuss can be found below:
https://www.irs.gov/pub/irs-pdf/fw4.pdf
https://www.uscis.gov/sites/default/files/document/forms/i-9-paper-version.pdf
https://www.irs.gov/pub/irs-pdf/f941.pdf
I hope this helps!
xo, Michelle Next Steps: Grab Your Freebies: https://churchfinances.ck.page/guide Learn More: www.churchfinances.org Email Me: info@churchfinances.org Want to work with me: www.hallmarktax.comI am excited about today's podcast episode because it’s something that I am VERY passionate about. I started my bookkeeping business in my mid-late 40’s. And the closer I got to opening, the more I felt unqualified and too old. I felt that I had missed my opportunity and that I should give up the idea because it was too late.
Thankfully, Holy Spirit knew that I was stuck in some stinking thinking and He helped me to reframe my thinking to be in line with the Father’s will for my life.
In podcast episode 11, I hope to encourage you to take that step of faith and know in your knower, that if the Lord has called you to open a business, then now IS the perfect for you to do that. Regardless of your age.
In the podcast, we are going to look at the following:
1. I cover the stats that show being over 50 years old makes us the ideal Entrepreneurs
2. I touch on 3 areas that I believe make the difference as to why we make such great Entrepreneurs
3. I share the some of the top industries and famous entrepreneurs that started after age 50 and became wildly successful.
4. I debunk your objections as to why you can’t start now and encourage you to answer the question “why not !?!”
As always, thanks for giving some of your time to spend with me.
Be blessed my friend!
xo, Michelle Next Steps... Grab Your Freebies: https://churchfinances.ck.page/guide Learn More: www.churchfinances.org Email Me: info@churchfinances.org Want to work with me: www.hallmarktax.com Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytaxThis is one of the most argued subjects that I get with church personnel. Yet the IRS is VERY clear on this subject. Let's take a look at what they have to say. The IRS looks at 3 areas to determine how to properly classify your workers. We will look at each area briefly in this post. • Behavior Control • Financial Control • Relationship of the Parties If you would like a printed copy of the above information in more detail IRS Publication 1779 is what you want to research. You cannot take just one of the above and use it for your determination. No single factor from these three groups is conclusive, BUT of the three areas of consideration evaluated by the IRS, behavioral control is given the greatest weight, followed by financial control. I will tell you, according to the IRS, very few ministers qualify as Independent contractors. “Generally, you're an employee if the church or organization you perform services for has the legal right to control both what you do and how you do it, even if you have considerable discretion and freedom of action." For more information about the common-law rules, see Publication 15-A. Employer's Supplemental Tax Guide xo, Michelle
Next Steps:
Grab Your Freebies: https://churchfinances.ck.page/guide
Learn More: www.churchfinances.org
Email Me:info@churchfinances.org
Want to work with me: www.hallmarktax.com
Join the FB Community: www.facebook.com/groups/churchbookkeepingandclergytax
Everyone wants to be known and understood. And your clients are no different. If you want to run a successful bookkeeping business that you truly love and that brings you joy, you need to work with the clients that are a right fit for you. In today's episode, I am going to walk you through 4 tips to finding your ideal client. xo, Michelle Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/guide
Learn More: www.churchfinances.org
Email Me: info@churchfinances.org
Want to work with me: www.hallmarktax.com
Join the FB Community:
www.facebook.com/groups/churchbookkeepingandclergytax
In episode 06 we started this discussion by covering who qualifies for the minister housing allowance, why they want a housing allowance, how to properly designate the housing and how to claim housing on the ministers’ tax return. In this episode, we will conclude the 2-part series with information on when the minister lives in the church parsonage, what expenses are allowed to be included in the housing allowance calculations, and other helpful tips for reducing the ministers tax liability.
xo,
Michelle
Next Steps:
Grab Your Freebies:
https://churchfinances.ck.page/guide
Learn More:
Email Me:
Want to work with me:
Join the FB Community:
www.facebook.com/groups/churchbookkeepingandclergytax
I am so pumped and excited to be sharing my very first book review with you. As I have already mentioned… I. LOVE. BOOKS. And I love to read business books as I want to learn everything I can to give my businesses the best chance possible to succeed. The most impactful book to date that I have read is Profit First by Mike Michalowicz. In this episode, I am going to share what I thought were the most note-worthy principals taught in the book and how I implemented those into my personal businesses, both my bookkeeping firm and my bookstore. There is SO much more detail in the book and I hope that you will get you a copy of it soon and not just read it but apply it. I promise you that it’s worth it. And that’s a wrap for todays episode. I pray that it has been helpful to you and that you can apply something you’ve learned to make your job more enjoyable for you and those you serve. Be blessed my friend! See below the Amazon affiliate link so you can get the book at a great price. Book link https://amzn.to/42R8Rc6 If you'd like to read the blog post, click HERE As always, thanks for giving some of your time to spend with me. Be blessed my friend! Michelle Sign up to join our awesome Bookkeeping Business Newsletter and receive a great FREE resource!
Church finance specific FREE resource: https://churchfinances.ck.page/guide
Want to connect with me?
See my contact information below:
Learn: www.churchfinances.org
Connect: info@churchfinances.org
Want to work with me: www.hallmarktax.com
Join us:
www.facebook.com/groups/churchbookkeepingandclergytax
In today's episode, I go over the most misunderstood part of church payroll - the minister's housing allowance.
I will touch on three topics:
I look forward to walking you through this sometimes complicated issue.
Sign up to join our awesome Newsletter and receive a great FREE Resource!
Church finance specific FREE resource: https://churchfinances.ck.page/guide
Want to connect with me? See my contact information below:
Learn:
Connect:
info@churchfinances.org
Want to work with me:
Join us:
www.facebook.com/groups/churchbookkeepingandclergytax
In this episode I go over 5 things I think you need to know to have a successful bookkeeping business launch. I share tactical steps you can take to increase your chances of success along with what has worked for me. I believe that sharing my personal experience is the best way to help. I hope you enjoy! Want to connect with me? See my contact information below:
Connect: info@churchfinances.org
Want to work with me: www.hallmarktax.com
Join us:
www.facebook.com/groups/churchbookkeepingandclergytax
In today’s episode we will be talking about Internal Controls and specifically about choosing the right staff and/or volunteers who will have financial responsibilities. And also about choosing the right firm to outsource your church bookkeeping/payroll services to.
Resources mentioned to help with educating financial staff and volunteers:
www.ChurchLawandTax.com is the ultimate online resource.
www.freechurchaccounting.com is another great online resource.
www.quickbooksmadeeasy.com offers great courses for Houses of Worship if you use QuickBooks software.
Questions to ask potential outsourced bookkeeping and payroll firms:
Want to connect with me? See my contact information below:
Learn:
Connect:
Want to Work with me?
Join us:
In today's episode you will find the 6 steps that I believe are pertinent to successfully doing business God's way. Short and Sweet! Enjoy!
To check out the Bible verses mentioned in today's podcast, go to www.churchfinances.org/verses
Learn: www.churchfinances.org
Connect: info@churchfinances.org
Join us:
www.facebook.com/groups/churchbookkeepingandclergytax
Regardless of the size of the church, the giving, or the title you’re given, there are 5 basic principles that every church finance individual needs to know.
Each topic will be covered more extensively in future episodes, but I will touch briefly on them for you today.
1. Annual tax returns.
2. Unemployment Taxes.
3. Minister taxes
4. Donations
5. Receipts
Learn:
Connect:
info@churchfinances.org
Join us:
www.facebook.com/groups/churchbookkeepingandclergytax
Hello there new friend! Welcome to the very first episode of the Bookkeeping with a Purpose podcast! I’m your host, Michelle Brown and I am SO totally thrilled and honored to be here with you today.
I was in church recently , and the thought hit me…. Our pastor uses humor in his sermons to gain and keep our attention so that we are ready to listen when he drives home the main point of his sermon. Not all pastors preach the same, they all have their unique personalities, teaching styles, mannerisms, etc., but the goal is the same….. to share a message they believe in….the Gospel of Jesus Christ to as many people as possible and as simply as possible. And I believe that podcasters are really no different. We all have a message that we believe in and want to share and yet we all do it in our own unique way. So here I am!
In this very first episode, I’m going to share a bit of how this podcast came to be. Bookkeeping and the business of bookkeeping is not a boring subject and I promise to make it as fun and as interesting as possible. Thanks for coming along on this journey. Let’s do this!
learn::
connect:
info@churchfinances.org
Join my Church Finance FB group @ https://www.facebook.com/groups/churchbookkeepingandclergytax
Bookkeeping with a Purpose is a brand new podcast that teaches all things church finances, practical business tips and biblical mindset for those called to business. Michelle will use illustrations from her 20+ years as an entrepreneur along with skills and tips learned along the way from being an avid book reader and student.
Subscribe to the "Bookkeeping with a Purpose" podcast and start your week off by learning something new, fun, helpful, and possibly even learning something you didn't even know you needed to know!
The podcast launches Monday March 13th so subscribe today so you'll never miss an episode and tell someone about this exciting new way of learning all things biblical mindset, business, and church finances!