A church’s income statement is a document that provides information about church finances. It can be used to make decisions about church expenses and often includes the following three points:
-Total Income: Income is often categorized as either “earned,” such as church member donations, or “unearned” from gifts and bequests.
-Total Expenses: Expenses include a church’s payroll taxes on its employees’ earnings, along with operations expenses like utilities and church building maintenance.
-Net Income/Loss: This is the difference between a church’s income and expenses. A church with a positive net income has more money at the end of the year than it started, while a church with negative net income will have less money.
The document provides information about church’s revenue, expenses and net worth. It can be prepared for any period of time, depending on the needs. For example, the treasurer might prepare a monthly statement to provide timely information about the budgeting process or an annual church income statement to provide a complete picture of past year activities.