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AcctTwo Blog

How to Plan Well for 2021 to Avoid Church Financial Problems

Effective Financial Leadership RLast week we hosted a webinar with Vanderbloemen that talked about effective financial leadership and preparing well for 2021 to help you avoid church financial problems. It is such an important topic for the churches we work with – especially learning to serve in this new post-pandemic world.

There were three key points that were covered in the webinar:
  1. Planning Your Compensation & Benefits Budget
  2. Building an Effective Financial Team
  3. Implementing Scalable Financial Systems

Planning Your Compensation & Benefits Budget

We were honored to have Sutton Turner, Vanderbloemen's Chief Operating Officer, talk to us about the topic of compensation and what they are doing at Vanderbloemen to stay ahead of the curve.

Vanderbloemen has partnered with BestPlaces.net to help adjust salary for cost of living. They use this tool as a basis for more accurate compensation analysis. In addition, they have been using salary information and adjusting for inflation over the years – they now have over 11,000 data points that make up their compensation information. Cost of living, attendance, and budget are key factors in compensation; however, there are so many factors that impact compensation that can make every role unique because every single church is so different.

Visit, https://info.vanderbloemen.com/compensation-benefits-report-payment to learn more about their compensation services.

Building an Effective Financial Team

New call-to-actionAllison Webb, AcctTwo’s Head of NFP, talked about her experience working daily with finance departments at churches and ministries. “If you are a growing church – look at investments that you can make now that can help scale and grow your organization.”

Investments You Can Make Now:
  • Hire someone that has the business acumen to help understand and communicate your organization’s finances.
  • Outsource your payroll, information technology, and accounting departments. To be able to work with an expert that has the right training and background can give your organization confidence knowing you have the right services in place when you need them. It also helps free up your leadership team enabling them to focus on other priorities.

2020 has taught us so many lessons – one very important lesson is whether you have the right team in place to help you make decisions that will impact the future of your church and/or ministry. Think about how many times you have had to revise your budget this year – once, twice, or most likely five or six times since the pandemic and closures have endured. It is time to look at 2021 and apply what you’ve learned while you evaluate your finance team.

Implementing Scalable Financial Systems

Church management and accounting systems are two platforms that need to be evaluated – especially as the pandemic has made us all remote and cloud-based. Do you have the right systems in place? Is it giving you the right information that you need to scale?

Look at 2021 as an opportunity to invest in the right systems. Make the best choice for your church or ministry that will help scale for the future. According to Allison, “We’re still seeing at a lot of online participation at the churches we work with – even though the doors have opened.”  How does this change your programs for 2021? Are you shifting?

Whatever system you need to update, don’t forget to involve your staff in the decision – remember they will be using the system every day. Let them have a voice.

Effective Financial Leadership Webinar

2020 has been about surviving. 2021 needs to be about planning and preparing well for the future. Watch the webinar here: https://info.accttwo.com/effective-financial-leadership-webinar

Topics: Not-for-Profit and Faith-Based