The Church Profit and Loss Statement Template has been designed to assist church owners with their tax preparation. All church tax forms need to be prepared with the help of an accountant and the church profit and loss statement template enables you to create a simple document that will enable you to prepare your church tax return, on your own, without having to hire an accountant. One of the most time consuming and tedious tasks of preparing your church tax return is that of preparing your church profit and loss statement. A person can spend years developing his own style of churches statement and then spend thousands of dollars in books and other materials to make sure he creates a customized statement.
The profit and loss statement template allow church owners to do this in just a few minutes. It gives you all the information that you need in order to prepare a church profit and loss statement for your church tax form. It also helps you to understand how to prepare the statement correctly so that it is a precise reflection of the income of your church, including donations, sales, and interest.
The church profit and loss statement template is designed to be used in order to prepare your church tax return and not as a guide to follow. Church owners are advised to use it for guidance on things like expenses and income but to be consistent with how they are reported, there should be no difference between what is written in the church profit and loss statement and what is written in the income statement.
The church profit and loss statement template is quite simply a well organized, easy to understand document. It provides church owners with a comprehensive list of items that are required in order to prepare the church tax form and shows them what items are included in the church profits and losses for each year of the tax return. Many church owners find the list of expenses helpful in making sure that they are only paying the correct amount of expenses and that they are not paying more than they need to.
The church profit and loss statement template also show them the assets that they own as well as the liabilities that they have. This is especially important for church owners who do not own real estate or other valuable properties and would be advised to be careful with their debt ratio. There are three methods that can be used to calculate the assets of a church.
The first method is the traditional method where the church owner only reports the current assets. If the assets are reported in this way, they will be in the “current assets” category. The second method is called net worth. Net worth is only counted if the assets are reported in this category.
The third method is called net worth plus and is used when the church owns capital assets such as real estate. It counts the value of the home and other real estate assets. Regardless, of which method of valuation the church uses, a church tax statement should be prepared using the “Current Assets” method.
The church profit and loss statement template also make sure that the proper allocations are made within the profit and loss account and that they do not get over-written. By having the financial statements prepared using the church profit and loss statement template, it will allow church owners to rest assured that they will have an accurate picture of their finances.