Now that we’ve selected our accounting system (Xero), let’s talk about some of the apps we use which integrate seamlessly.
These apps will help you and your church save time, save money, and improve compliance.
Payroll
Payroll is likely the most important business function to get right in your church. Why?
You have to keep your employees happy. Pay them accurately and on time.
You have to keep the government happy. Pay them accurately and on time.
Manual payroll requires spreadsheets, accurate data entry, extensive recordkeeping, and timely tax filing and payments.
Doing payroll wrong can, and often does, cause major pains for churches. It can create problems with the IRS and dissatisfied employees.
But the great news is that you don’t have to do it alone. There are very good, affordable options that will automate most of these tasks.
We use Gusto. It’s reliable. It connects perfectly with Xero.
You can also connect timekeeping apps like Deputy or TSheets. These allow employees to clock in and out using kiosks or cell phones. And you can set schedules on line and track time off.
Employees also get 24/7 access to paystubs, W-2s, etc.
Now, church payroll can be a little complicated. So make sure you are up-to-date on all of the rules or consult someone that is.
Donor Management
Donor management is the process of recording and tracking donors and donations. Then you provide statements/receipts to the donors for tax deduction purposes.
Many churches are still using spreadsheets and tracking manually.
But again, there are dozens of online options that will automate these things.
Not only that, but the rapidly increasing use of online platforms for donations makes the decision to switch a true no-brainer.
Some of the options include PushPay, Tithe.ly, Easytithe, and many more.
Bill Pay/Accounts Payable
Two-signature checks. Paper-chasing approvals.
These are common signs of good church internal controls.
But we’ve found a better way. We use a few apps to manage this process efficiently and without paper.
Hubdoc is the document hub. Our clients scan bills, receipts, statements, etc to this program. Then we route the documents to the appropriate place. Bills go to Bill.com. Receipts go to Expensify or Xero.
Bill.com has allowed us to create automatic internal controls. We can set up multiple approvers. When a bill is created, a picture of the original along with the assigned category is sent to the first approver by email. The approver can approve by clicking a button. Then it is forwarded to the next approver, if there is one.
Once bills are approved, they are paid either electronically or by check through their third party account, depending on the vendor.
This solves several problems:
No chasing people for signatures
Limits access to bank accounts
Moves everything paperless
Expensify allows employees to submit expense reports by simply snapping pictures of receipts and sending them directly to the approver. They can be approved at the computer or on their phone. Reimbursement are direct deposited to the employee.
Document Storage/Management
I mentioned Hubdoc above. Hubdoc is a gamechanger.
You can take a picture, scan directly, scan and email, or forward emails. You can also connect vendors and banks directly to Hubdoc and it will “fetch” statements and bills for you. It’s a huge timesaver.
Hubdoc creates a folder storage system and automatically puts the documents where they’re supposed to go. It’s a virtual filing cabinet.
You can back up these documents automatically to Google Drive, Box, or SmartVault.
As you can see, there is an enormous number of options out there for improving the processes in your church. Do some searching, read some reviews, and go for it. Don’t be afraid to try something out.