“When the amount had been determined…” (2 Kings 12:11)

             First, I need to remind you once again that I am an accountant, not a Bible scholar so what I am about to do here is really crawling out on a limb.  I am going to attempt a very simple word study because the word “determined” in this passage seems to be much more significant than it appears.  Its meaning is much deeper than simply knowing how much money was raised.

            After consulting a number of word studies and commentaries, I found some interesting opinions as to what “determine” means.  To some the word means to “measure” or to “weigh out”.¹  However, to others the word can mean “to make an estimate by comparing to a standard” or “to adjust to a standard to set something right.”²  A church’s recordkeeping and financial reporting are of deep importance.  They serve as measuring rods to determine how the church is doing.  Financial records and reporting can also serve as a compass, helping keep the church on course.  They also are the chief method of financial accountability.

            Key: One reason why a church’s financial reporting is so important is that, as unpopular as this may be today, a church is in the accountability business.  The exact phrase, “give an account”, is found several times in Scripture.  In Romans 14:12 Paul reminds that each of us will be accountable to God.  The writer of Hebrews tells us that we must obey our religious leaders because they serve us with the understanding that they will have to give an account of their stewardship to God.  And Jesus, in His parable of “The Shrewd Manager”, used the phrase in connection with financial management.

            Giving an account is what financial reporting is all about.  That is why my profession is called “accounting”.  Contrary to the stereotypes, accounting is really not about picky people counting things.  It’s about giving a report; hopefully a good report.  A church’s accounting and reporting system is not boundary setting.  It is not a set of rules designed to keep ministers and staff from doing what they want to do.  Financial reporting is not a restrictive process that will inhibit a pastor’s ministry.  It is primarily a method of “giving an account” to the congregation of the condition and activities of the church, stated in dollars and cents.

            Key: Churches that follow the best practices ask themselves the following questions.  “How thorough is our record keeping?” and “How forthcoming are we in communicating our reports to the body?”  Those that avoid financial “train wrecks” have reporting systems that include accountability: the willingness to be forthcoming and complete in their reporting.  They also are transparent: they are unafraid to open up their books and records.

            Here are a few practical ways to do this. 

• First, be sure your church is producing a complete set of financial statements.  This will include a balance sheet which will reflect the assets the church owns, the liabilities the church owes and the balance of any funds restricted for special purposes.  An income statement, usually called a budget report in the church environment, should accompany the balance sheet.  This report will reflect the income and expenses for the period letting the reader determine if the church is operating within its means.  If a church allows designated or restricted gifts to be given by members, a report displaying the restricted funds received and spent should also be included.    
•  Second, don’t be tempted to control events or information by using electronic spreadsheets exclusively to report to the church congregation.  Often spreadsheets are prepared which provide a summary of “highlights” of the church’s financial results instead of a full set of financial statements.  These often can be no more than “spin documents” created to keep the people happy, while hiding certain “lowlights” of the church’s activities.  Unfortunately, when the spin runs out, trouble soon follows.   
• Third, within reason, have an open records policy.  Do not be afraid to let members see the financial condition of the church.  This can be done by establishing a clearly defined process to allow inspection of the records by those who make reasonable requests to do so.

Verne Hargrave is the Church and Ministry partner at PSK LLP and author of the book, Weeds in the Garden.