6.4 Accounting and Bookkeeping
A methodical accounting system enables a location to be a good steward of the assets of the People of God and the contributions of its faithful.
Accounting is a system for gathering, recording, verifying, summarizing, and reporting financial activity. Accounting has three objectives:
To fulfill the obligation of financial stewardship and accountability for funds entrusted to the entity
To disclose the results of operations and the financial position of the entity
To provide financial information to aid in decision making and in budget control
Bookkeeping applies an accounting system to record actual financial transactions. Its objective is:
To maintain an accurate record of all transactions
To be consistent in its methodology
To abide by applicable professional standards and internal recording and reporting requirements
Every location must keep track of its financial activities in an orderly manner and have sufficient records and systems to report the financial activities internally to the archdiocese and to third parties.
The archdiocese provides a chart of accounts and financial formats to enable locations to create budgets, maintain records, and report financial results to the archdiocese and to its Finance Council, parishioners, school community, and other local oversight groups.
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