January To-Do List 

It's a busy time of the year! Visit this site for tips to make your accounting job just a little easier...starting with this January To Do list for churches and nonprofits!

Also, if you join my mailing list, I'll help keep you informed each month!

January To-Do List for Churches and Nonprofits

Year End and First of the Year To Do List

As in years past ...you should furnish Form W-2 to employees who worked for you during the past year by Jan 31st.

HOWEVER, your transmittal form W-3 (cover page for all your W-2s) is now due the end of January as well...even if you file electronically! Read More!

By the end of the Jan, you must furnish Form 1099-MISC to iindividauls that you paid amounts greater than $600 to last year. AND just like the W-3s...your transmittal form 1096 (cover page for all your 1099s) is now due by Jan 31st as well! Read More!

Note: The start of this year is the best time to determine if your worker should be classified as an employee or independent contractor.

Penalties for misclassifying a worker as an independent contractor are very stiff and strictly enforced so now is as good of time as any to make sure every one of your workers are properly classified. See this article on the Misclassification of Workers.

Tip: A warning flag that may draw the IRS's attention is an individual receiving only one 1099-MISC from the organization for more than one year.

Last year, the first of the year fell on Sunday and caused some misunderstandings on which year a contribution is recorded in. I don't think we will have that issue this year, but for future years' reference: a donation is recorded when received ...even if the check is dated for the previous year. The only exception to that rule is if you receive a check in the mail and it and the envelope is dated Dec 31st or before. Read More!

Want to set up QuickBooks Online for your church or nonprofit, but do not know where to even begin? Let Lisa London, CPA and author of QuickBooks for Churches and Nonprofits, take you step by step through setting it up and using QBO for your church or nonprofit organization in her online courses!

I highly recommend "The Accountant Beside You" QB ONLINE COURSES 

*Use the discount code FCA for a 10% savings!

If you haven't done it yet...make sure you review your pastor's compensation package. See this Year-End Checklist for important factors to remember when reviewing or setting up this package.

Review and adjust your minister's housing allowance. Even if you already have a housing allowance set up for your minister, you need to review it and adjust it if applicable before the end of January. Read More!

If you haven't done it yet...The first of the year is the perfect time to set up an Accountable Reimbursement Plan. Every church or nonprofit should have one approved and set up...no matter how big or small you are! Read More!

Due Dates in your To-Do List

Important To Do Items for Churches and Nonprofits in January

January 15:

Ministers--your estimated taxes are due for the fourth quarter (Oct – Dec) of last year. You can usually skip this fourth quarter payment if you intend to file your return and pay all the taxes due by January 31. Read More!

January 31:

Don’t forget your federal (Form 941) and state’s employers quarterly report if applicable. Some state employer forms are due earlier than the 941…so check  with your state’s tax commission and see if and when your state quarterly report is due. Read More!

January 31:

Send out annual contribution statements to your donors on or before January 31. Make sure you let your donors know that they should not file their federal income tax return before they receive a written acknowledgement of their contributions from the church. You could do this by posting a notice on the bulletin board, sending out a letter, including in newsletter, posting on church web site, etc. Read More!

The Church Accounting: How To Guide devotes a whole section of the book to payroll for churches. It covers payroll terminology and forms and then takes you through the steps necessary to set up a payroll, calculate and file the necessary taxes and forms, and even details how to handle the minister's payroll. It also includes sections on filling out IRS forms: 1099 and 1096.

If you have QuickBooks or are considering using it in the future, go ahead and purchase the QuickBooks for Churches and the How To Guide combo for a complete package on setting up and administering a payroll using QuickBooks.

QuickBooks for Churches & Church Accounting Combo Bundle

Now is the best time to implement a new accounting system. If you are uncomfortable with setting up your own accounting system, consider hiring a company that specializes in setting up effective accounting systems for churches such as my bookkeeping company: Vickeys Bookkeeping.  Read More!

Church Accounting Package

A set of 4 ebooks that covers the following topics...

  • Fund Accounting Examples and Explanations
  • Setting up a fund accounting system
  • Donation management
  • Minister compensation and taxes
  • Internal controls and staff reimbursements
  • Much more - Click here for details

Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping?

Recommended Resource!

Online classes/courses on how to use QuickBooks for a church! 

Click here for more details!

Use coupon code "FCA" for 10% discount!