Audit & financial services

Churches must decide what type of accounting method they will use to prepare annual financial statements. Churches should also decide whether financial reports will be audited, or reviewed.

These recommended accounting methods are applicable to Basic Religious Entities only. Incorporated churches are not Basic Religious Entities and must prepare financial statements in accordance with requirements of their particular regulator.

Recommended accounting methods for small churches (Annual revenue less than $250k)

Cash flow accounting (Annual Review)

See attached template financial statements:

Fin_Template_Cashflow-Method (88.64 kB)
Recommended accounting methods for medium churches (Annual revenue between $250k and $1m)

Accrual accounting (Annual Review or Audit)

Special purpose

Recommended accounting methods for large churches (Annual revenue exceeding $1m)

Accrual accounting (Annual Audit)

Special purpose, but as close as possible to General purpose – Reduced Disclosure Regime

Resource links:

Official accounting standards can be obtained from the Australian Accounting Standards Board website

Find your church and look up your Australian Charities & Not for Profit Commission registration details on the ACNC website

Recommended chartered accountant for annual audits/reviews for medium and large churches: Saward Dawson

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