Shop Courses > Accounting for Churches

Accounting for Churches #377826

Course Overview

Credit

Amount

CPA

Course Author: Steven M. Bragg, CPA Field of Study (CPA): Accounting

Course Description

Course publication/revision date: This course was updated on 5/13/2026.

The accounting for a church can be fairly difficult, since it must deal with large numbers of donations, track multiple programs, account for significant fixed assets, and work within special taxation rules. In the Accounting for Churches course, we show how to deal with all of these issues, while also covering payroll, payables, budgeting, closing the books, document retention, accounting controls, and much more. In short, this course is the comprehensive reference for how to account for churches.

Table of Contents

Chapter 1: The Essentials of Church Accounting7

Introduction	7
The Nonprofit Aspects of Church Accounting	7
Fund Accounting	7
Net Assets	8
Net Assets without Donor Restrictions	8
Net Assets with Donor Restrictions	9
Net Assets Summary	9
The Release from Restriction Concept	9
Cash vs. Accrual Basis Accounting	10
Double Entry Accounting	10
Journal Entries	11
Church Chart of Accounts	12
Bookkeeping Concerns	14
Financial Statements	14
Case Study	18
Review Questions	23

Chapter 2: Specific Accounting Transactions24

Introduction	24
Accounting for Offerings	24
Accounting for Payables	26
Accounting for Credit Card Payments	27
Accounting for Reimbursements	27
Form 1099 Issuances	28
Accounting for Payroll	29
Employee vs. Contractor Designation	29
Definition of a Minister	30
Payroll Tax Rules Pertaining to Churches	31
Tax Treatment of Minister Housing	31
The Payroll Cycle	32
Employment Eligibility Verification	33
Withholdings Documentation	33
Gross Pay Calculations	35
Payroll Tax Calculations	36
Benefits and Other Deductions	38
Net Pay	39
Payroll Tax Remittances	39
Types of Tax Deposit Schedules	39
Monthly Deposit Schedule	40
Semiweekly Deposit Schedule	41
Remittance Method	42
Payroll Journal Entries	42
Payroll Tax Returns	43
Accounting for Fixed Assets	44
The Capitalization Limit	45
The Base Unit	45
The Initial Measurement of a Fixed Asset	45
The Purpose of Depreciation	46
Depreciation Concepts	46
Straight-Line Method	47
The Depreciation of Land	47
The Depreciation of Land Improvements	48
Depreciation Accounting Entries	48
Accumulated Depreciation	49
Asset Disposal Accounting	50
Budgeting Best Practices	51
Closing Best Practices	53
Document Retention	54
Accounting Policies	56
Summary	57
Review Questions	58

Chapter 3: Tax Issues for Churches59

Introduction	59
Dealing with Donations	59
Direct Donations	59
Unreimbursed Expenses	60
Quid Pro Quo Contributions	60
Written Acknowledgments	61
Vehicle Donations	61
Vehicle Contributions of More Than $500	61
Vehicle Contributions of $500 or Less	64
IRS Information Return for Donations	64
Pass-Through Donations	64
The Benevolence Fund	65
Donated Labor	65
Discounted Pricing on Purchases	65
Mandated Document Retention	66
Summary	66
Review Questions	67

Chapter 4: Accounting Controls68

Introduction	68
The Nature of Controls	68
The Risk of Church Fraud	69
Church Controls	69
Offering Controls	71
Mailed Check Receipt Controls	71
Donor Acknowledgment Controls	71
Fund Raising Controls	72
Personnel Controls	72
Procurement Controls	73
Payables Controls	73
Credit Card Controls	74
Petty Cash Controls	74
Fixed Asset Controls	75
Additional Control Topics	75
Low-Cost Church Controls	75
Summary	76
Review Questions	77

Answers to Review Questions	78
Glossary	82
Index	84

Course Details

Author: Steven M. Bragg, CPA

Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.

Publication/Revision Date: 5/13/2026

Course Exam Questions (online): 20 (multiple-choice)

Program Delivery Method: Self-Study (NASBA QAS Self-Study)

Available Formats of Course Text: Downloadable PDF, Printed/Mailed

Course Level, Prerequisites, and Advance Preparation Requirements

License	Course Level	Prerequisites	Advance Preparation Requirements
CPA	Overview	None	None

* This program is appropriate for professionals at all organizational levels.

Sponsor ID Numbers

National Registry of CPE Sponsors I.D.: 107615

State CPA Board Sponsor ID Numbers (where applicable)

Florida Division of Certified Public Accounting: 0004761

Hawaii Board of Public Accountancy: 14003

New York State Board for Public Accountancy: 002146

Ohio Accountancy Board: .51 PSR

Pennsylvania State Board of Accountancy: PX178025

Texas State Board of Public Accountancy: 009349

Learning Objectives

As a result of studying the course material, you should be able to meet the objectives listed below:

Recognize the key features of a fund accounting system.
Specify the differences between restricted and unrestricted donations.
Identify the differences between the cash basis and accrual basis of accounting.
Recognize the general ledger accounts that a church might use.
Identify the efficiencies that a church bookkeeper could employ.
Recognize the church-specific disclosures that might accompany its financial statements.
Specify the federal government reporting associated with payments to church suppliers.
Identify the requirements to be classified as a minister for tax purposes.
Recognize the special tax exemptions and requirements for churches.
Specify the federal government reporting forms needed for church employees.
State the deposit dates associated with the two types of payroll tax deposit schedules.
Identify which costs should be capitalized into church fixed assets.
Recognize the budgeting best practices that can be applied to a church.
Specify the donor acknowledgment criteria that a church must follow.
Identify the options for retaining tax-deductibility for pass-through donations.
Recognize the controls that can be applied to church accounting systems.