Introduction

Financial Management is the discipline that deals with matters related to the

management of business and organization finance. It is a private branch to the

Administration. One must understand and the meaning of finance, which corresponds to the

set of available in-kind cash resources that will be, used for cash transfer and circulation

transactions. Since there is a need to analyze in order to have exposed the real economic

situation of the funds of a Church or company, in relation to its assets and rights guaranteed.

This paper will help people or larders to have a good leadership in their church even in the

community. This paper reflects The Financial Plans (Planning for Financial Support,

Analytical Guidelines for Planning), The Treasure as Finance Manager, Capital Management

Planning (Cash Management) and Personal Reflection.

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 Financial Plans

Planning for Financial Support

After establishing a mission, setting Goals, and developing action plan, financial

implications of the church’s plans must be considered and financial support planned and

developed. This is true for not only the annual budget but for long-term requirements as

well.1 The financial plan displays all important information that has been gathered from the

financial planning such as budget, balance sheet, cash flow, and goals. This information

allows the identification of the paths to be followed and the next steps, which involves

suggested strategies, an implementation agenda and a schedule of periodic reviews of the

plan. Financial support is a control of finance that is part of a church strategy to support

financial aspects. This means that this planning will provide useful information to predict

possible future occurrences within the church, whether positive or negative. The more

information and projections made possible by financial planning, the better it will be for the

church. This away the church can get an accurate sense of situations that may happen to it.

Analytical Guidelines for Planning

For effective planning in any environment, be it in business or the church, analytical

tools are necessary. These tools are most useful when employed to assist in defining

parameters, identifying trend. Analytical tools must be used to assist, not to guide planning;

they are to aid, not to limit2. At this stage, we should set up a management team to define the

costs and benefits of the project, select a project team, and set out the detailed stages that will

have to be carried out. It is in the same stage where we form team that can specify and work
1
Crumroy, Otto F, Kukawka Stan and Witman Frank, eds. Church Administration and Finance:

Resources for Leading the Local Church. Second Edition. NewYork: Morehouse. 8132
2
M. Y. Khan And P. K. Jain. Financial management. New Delhi; Tata McGraw Hill

publishing Company. 1983. 666.

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on some of the changes, ensuring that your users are committed to the change, determining

the goals and visions to outreach. We need to define the number rational groups they should

have, recognize the level of operating budget needed to support salaries and benefits of the

pastor and staff, and even suggests a ration of parking spaces needed to accommodate the

number of worshiper.

The Treasure as Finance Manager

Among the most important support functions in a church are the roles of treasurer and

financial secretary. We first look at the role of the treasurer as financial manager of the

church. Treasure is not only responsible for safekeeping of founds and maintaining financial

documents in an orderly and efficient way, but also for spending within budgetary limits,

paying bills on time, and communicating complete information about the financial health of

the church3. The treasuries of the church must be organized and transparent, as this is one of

the main sectors of any organization, transparency and discipline is known as treasurer 4. The

church treasurer is the person responsible for planning fundraising actions, organizing

documents, controlling and directing treasury services, especially with regard to the church’s

financial, accounting and administrative areas. He is the person responsible for the

institutions accounts payable and project and cost of planning. Any member of the church can

be chosen as the treasurer, this is a function of the pastor’s utmost confidence, as all financial

health of the church is in his hands. Although it is an honourable task, it is not simple as daily

activities are very critical and require a lot of attention. According to Crumroy in his book of
3
Crumroy, Otto F, Kukawka Stan and Witman Frank, eds. Church Administration and

Finance: Resources for Leading the Local Church. Second Edition. NewYork: Morehouse, 1998. 819
4
M. Y. khan and P. K Jain. Financial Management. New Dehli. Mc Graw Hill Publishing

Company. 1983. 645

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Church Administration and Finance says “the treasurer serves as financial advisor to all other

groups in the church which have their own funds (such as Sunday school classes), and may

even, in small churches, maintain these accounts”5

Capital Management Planning

Cash Management

Cash is an important component of current assets and is most essential for business

operations. Cash is the basic input needed to keep the business running on a continuous basis.

It is also the ultimate output expected to be realized by selling the service and product

manufactured by the firm6. Many churches today are complex structures whose sources of

income go beyond the contributions and tithes of the faithful and the expenses exceed those

necessary, telephone, and water. Many churches have employees, which involves the need for

accountant service. Crumroy says: “A church with its entire operating or reserve fund in

regular non-interest-bearing accounts may be wasting an opportunity for earnings. Although

it seems more difficult for non-profit organizations to receive special banking privileges at

reduced rates a church can still shop around and usually find a stable local bank willing to

offer interest on checking as well as savings accounts at reasonable rates, and free checking

to small accounts”7. An operating budget is important to make sure that your local church

stays financially health for the upcoming year. If the church runs out of cash midway through

5
Crumroy, Otto F, Kukawka Stan and Witman Frank, eds. Church Administration and

Finance: Resources for Leading the Local Church. Second Edition. NewYork: Morehouse, 1998. 174
6
I. M. Pandey. Financial Management. New Delhi. Vikash Publishing House. 1983. 301.
7
Crumroy, Otto F, Kukawka Stan and Witman Frank, eds. Church Administration and Finance:

Resources for Leading the Local Church. Second Edition. NewYork: Morehouse. 1998. 179

4
the year then it is very existence might at stake. Even if the church just gets into a cash flow

crunch, that could start a chain of events that might keep it from realizing its full potential.

Personal Reflection

The book has a lot of rich knowledge for church leaders just as much for business, the

knowledge you find is of utmost importance of good church management. As we are called to

use our gifts to give or provide for orderly functioning of the church, the book has good

topics and they are God centred which I see like God spoke to the writer in many areas which

we find in the book. I have observed that the church leaders involved in administration as

full-time role should never lose sight of the fact that ultimately the church is the people of

God called together to minister the love of the saviour. There are many questions that I raise

in the everyday operation of any business and a church or spiritual center is no exception.

This book has become our ‘go to’ for support in all areas. It provides information and

supporting templates for the activities of leading a local church, from developing a mission

statement, goal-setting, individual ministries within the church, and event planning to

counting and reporting finances and conducting personnel reviews, this book is a must have

covering just about everything we need to know to success our ministry

Conclusion

In conclusion of this paper, we conclude that financial management is important to the

leaders, so that the church can be managed in good ways. Financial Management is the

discipline that deals with matters related to the management of business and organization
5
finance. It is a private branch to the Administration. One must understand and the meaning of

finance, which corresponds to the set of available in-kind cash resources that will be, used for

cash transfer and circulation transactions. Since there is a need to analyze in order to have

exposed the real economic situation of the funds of a Church or company, in relation to its

assets and rights guaranteed.

Bibliography

Crumroy, Otto F, Kukawka Stan and Witman Frank. Church Administration and

Finance:Resources for Leading the Local Church. New York: Morehouse, 1998.

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 E, Gurhmann. H G and Dougall. H. Corpolate Financial Policy. New York: Beca

Books House, 1972.

Jamce, Home. Van C. Financial Management and Policy. New Delhi: Pretice Hall of

India , 1983.

k, Khan. M Y and Jain. P. Financial Management. New Delhi: McGraw Hill

Publishing Company, 1983.

M, Pandey. I. Financial Management. New Delhi: Vikash Publishing House, 1983.