Church Software

Many churches try to adapt conventional accounting software to their organizations, but this doesn¡¦t work very well. The following article looks at accounting software specifically designed for churches and other non-profit organizations.

Unfortunately, there is no one product that will satisfy all needs. Each church must make its own determinations about the accounting software it needs to meet the requirements of legislation and its congregation.

Non-profit software should be able to handle basic accounting functions as well as balancing multiple funds, encumbrance accounting and creation of reports to comply with FASB and /or GASB requirements.

Most churches will have to make some trade-offs. Certain functions are necessary, but cumbersome to use. Other functions may not be necessary for your church, but are included in the whole package.

The most important thing an administrator or board of directors can do when selecting new software is to try out the package using data typical of your church instead of trusting the vendor¡¦s claims.

Roberta Ann Jones, CPA, PhD, in ¡§Sizing Up NPO Software¡¨ (Journal of Accountancy, Nov, 2000) evaluated 10 accounting software programs. She does not recommend any one program, but churches would do well to consider the following three programs when they are considering new accounting software.

„h BLACKBAUD (Blackbaud, Inc.) „h +Mid-level product „h +Undisputed market leader „h +More modules than any other product considered here „h +Add-ons: for schools, fundraising, detailed budgeting, grant and endowment management „h +FASB Statement No. 117 and GASB reports built into software „h +Assigns security at account level „h +Training in Charleston, S.C. and regional locations „h -Software difficult to use „h -Poor indexing „h -Navigation is complex, but has 8 functions with 85 sub-functions

„X SHELBY 2000 FINANCIALS (Shelby Systems, Inc.) „h +Low to mid-level product „h +Designed primarily for churches „h +Includes such features as: powerful membership module, tax info for pastors „h +Designed for bookkeepers instead of CPAs „h +Training is clear „h +Excellent audit trail „h +Upgrade patches easily downloaded „h -Users must look for accounting balance errors „h -Two posting options designed for security; one difficult to use

„X FUND E-Z (Fund E-Z Development Corp.) „h +Friendliest of three programs „h +Speed buttons on side of screen (CD for cash dispersal; CR for cash receipts) „h +Labels are accountant friendly „h +Low- to mid-level product „h +Effective audit report „h +Training probably unnecessary „h +Comprehensive fundraising module „h +Bank reconciliation complete and easy to use „h +Standard FASB Statement No. 117 and many GASB reports predefined for user. „h -Few built-in controls „h -Lacks encumbrance accounting sub-programs

N.B. Prices are considered to be low-end if the software costs less than $1,000. Because they include basic accounting functions only, no add-ons, and few controls; they are generally easy to use.

Mid-level products generally cost between $1,000 and $3,000 for each of the basic modules. These tend to have more capabilities, some controls and several additional modules the client can purchase.

High-end products generally cost over $3,000 per module and even more for complex accounting needs; costs can be astronomical! These modules have lots of capability and controls, often making them hard to use. Many additional modules clients can purchase are available.