I recently tried paying the church I serve as pastor’s bill at the local Christian bookstore and was told it was against the law in Tennessee for a church to pay any bills without a church credit card or church check.
Is this true?
If so, is there any reasoning behind it?
I figure as long as I get a receipt showing it paid, who cares?
Thanks for your time!
2Comments
TN must use check or credit / debit card
AAnonymous
In TN if the church us a tax exempt church you must use church check or church crefit/debit card to pay.
Using Undeposited Church Cash is Never a Good Idea
VVickey
I'm not familiar with TN laws, so really hoping someone from that state or familiar with that state law will chime in on this post =)
I do know that for proper accounting, a church should deposit all cash and then use a check, credit card, etc. to pay its expenses, but many church have petty cash accounts (check written to Petty cash ... not withheld from the offering!) that they pay for small things like stamps, coffee for a staff meeting, etc. However, that petty cash should never be used to pay a bill...because you always want a paper trail.
Plus, paying bills with cash could have some major internal control issues.
I do know that for proper accounting, a church should deposit all cash and then use a check, credit card, etc. to pay its expenses, but many church have petty cash accounts (check written to Petty cash ... not withheld from the offering!) that they pay for small things like stamps, coffee for a staff meeting, etc. However, that petty cash should never be used to pay a bill...because you always want a paper trail.
Plus, paying bills with cash could have some major internal control issues.