Tag Archives: web based

Church Donation Software 4 Key Elements.

When churches are looking for church donation software, they should make a list of the specific functionality they want immediately. Additionally, what needs exist in the next 5-10 years for the church donation software? Smaller organizations and church plants may not be ready for online donations however; the availability of this option later is crucial.

Entry of Data – Technology has helped contribution entry in various ways to get data into church donation software. Church donation software should include manual data entry, data file upload, and the ability to update donors records for online and EFT donations seamlessly. Additionally, mistakes happen and contribution corrections should be easy to make. The process should allow you to modify the giving date, fund assignment, check/cash tracking, comments, amount, or remove the transaction completely. Integration into the church accounting module from contributions removes additional key entry mistakes and time for double entering during posting.

Pledging – Pledge tracking by fund(s) is an important way for the church to know how much can they expect to come into the organization. Pledging can tell churches when people are falling behind throughout the year. It can also advise overall how much donations are ahead or short of the total pledge for the year. Pledging on multiple year funds with various donor commitment date ranges is essential.

IRS Statements – Entering data is useless if the system cannot provide an IRS statement for donors. Churches should be able to print or email statements, with the later saving on postage. Other options on statements include the pledge amount, church logo, different formatting styles, a personal message and comments. Criteria for producing the statement can vary such as: status codes, date range, sort options, funds to include, people that have given, non givers, people that have pledged but have not given, etc.

Tax Type Categories – Tax Exempt, Taxable or IRA, should categorize all the funds to allow removal of certain fund during IRS statement preparation. The organization should be able to add or change the fund names at any time but still maintain the category. A taxable fund example is money collected for coffee or donuts on a Sunday. A tax-exempt fund is money given with no return of good or services and donors expect a donation statement. Additionally, the IRA contribution is when someone donates his or her IRA proceeds to the organization.

Church donation software is an important aspect to any church and should have the most streamlined processes in place. It should also include some of the basic concepts above for starters and additional features like a link to an acceptable fund accounting package. Additional features include transferring monies from one envelope to another, ability to change envelope numbers, print deposit slips, and create reoccurring batches. Icon Systems’ IconCMO can help churches with this process and we look forward to hearing any comments you may have on this topic.


Benefits of a Church Payroll Solution (Part II).

Church Payroll Software Cost and its Benefits

One option for churches is to outsource payroll responsibilities. Payroll services typically charge $1 or more per check, with a minimum fee of $10-25 each pay period. Additional fees are often incurred for quarterly reports and W-2 preparation. These fees can amount to a substantial number over time.

Another option is for the church to purchase payroll software, which usually requires annual upgrades. These upgrades are not only expensive, but the installation process also consumes your valuable time.

The Icon Systems payroll module provides you with an unlimited number of paychecks and pay periods for any number of employees for only $110 a year. Since the system is entirely web-based, upgrades are automatic and cost you nothing extra. Additionally, the web based capability allows payroll checks to be prepared offsite but printed on location for the staff.

Price should not be the only factor considered when choosing a payroll system. The benefits of using the right church payroll software are numerous; however, we summarized the most important ones here.

  • Confidentiality – Church payroll software needs to be password-protected so only authorized people have access to this confidential information. You can have volunteers and staff members use the system to enter contributions and even process accounts payable checks without making sensitive payroll figures available.
  • Accuracy– The importance of accuracy in any church payroll system cannot be overemphasized. Not only do employees rely on the church to calculate paychecks correctly, but reports created for the IRS and other government entities also need to be accurate. Issues concerning pay tend to quickly dissolve trust in any organization, not to mention inaccurate reporting to the government could result in heavy fines.
  • Integration – Using separate church payroll software requires you to summarize the information and record the journal entries in the accounting system. Since the IconCMO Payroll module links directly to the fund accounting records, you are able to allocate staff pay to various funds as well as obtain up-to-date, detailed reports that comply with guidelines set by the Financial Accounting Standards Board (FASB.)
  • Reliability – Icon Systems has been in the business of helping churches for the past 20 years and its certified church accounting software follows the FAS 95 and 117 guidelines. Since you trust Icon Systems to take care of your organization’s accounting needs, it makes sense to turn to us for your payroll needs also.

We hope you have enjoyed reading this two-part series about church payroll software – if you missed the first post, you can read it here.


The Secret to Affordable Church Payroll Software! (Part 1)

Payroll is one of the most difficult, time consuming, and costly administration tasks churches repeatedly encounter. Churches of all sizes are required to use “fund accounting” as described by the Financial Accounting Standards Board (FASB) guidelines. Fund accounting is a specialized way of accounting designed for non-profits; if you use this accounting method we recommend you read this informative interview with Nate at The Church Accounting Software Guide.

More often than not, Payroll + Fund Accounting = Confusion

FASB Reporting guidelines add to the difficulty, time, and costs already associated with payroll. For example, churches can use money in the General Fund and the Youth Fund to pay the Senior Pastor and Youth Pastor, respectively. Alternatively, both Pastors may be paid using money from the General Fund. On top of regular income, IRS reporting and taxes vary for items such as housing allowances and vehicle expenses. Paying church staff members can also prove to be tricky; reporting and taxes for hourly or salaried employees follow a completely different set of guidelines altogether. Payroll management also tends to get significantly more complicated for multisite organizations.

Payroll does NOT have to be time-consuming

The initial setup of a payroll system is expected to take some time; however, this task may be considered to be of lesser importance since it is not recurring. Completing the payroll for each pay period, on the other hand, needs to be fast and relatively simple. An effective, easy-to-use church payroll solution will substantially reduce the time needed for you to complete recurring payroll cycles, therefore lowering the overall costs associated with payroll. Evaluate your current payroll system by asking yourself these questions:

  1. How long does it take me to print employee paychecks?
  2. Can I pay tax liabilities to government agencies quickly and efficiently with only a few clicks of the mouse?
  3. Are the liability accounts automatically updated when I cut checks to make these payments?

*Making consistent entries to liability and expense accounts each pay cycle minimizes the likelihood of mistakes.

The Ultimate Cost-Saving Secret:

Systems that charge thousands of dollars for payroll essentially offer the same benefits and features as basic payroll software. Some of the expensive payroll systems do not even comply with fund accounting guidelines. The price of church payroll software is dependent on who enters the tax formulas, so find a package that requires the church to input the tax formulas. If your church leaders are willing to put in a few hours of work at the start, they can save the church hundreds if not thousands of dollars each year in payroll expenses.

Icon Systems has streamlined the recurring task of paying employees by incorporating payroll into the IconCMO fund accounting software system in order to reduce the difficulty, time, and high costs associated with church payroll administration!


Cloud Computing – Security Myths Explained for Churches.

Cloud computing church management (or cloud based church management) is really a no-brainer for churches. The biggest advantage for the smaller church is; it frees up the time for the minister or other staff that are stretched thin to minister to the community and their members. It allows them to further their mission without worrying about the back-end data. For the larger organization; it saves them the nightly backup headaches, money from hiring an IT staff, and time. At Icon Systems we often hear several reasons why a church won’t move their data to the cloud. One is because of the security of their data. The data security issue is often laughable. When a church compares its current security practices with the safeguards available in the cloud by IT professionals, state of the art data centers, and security consultants at a fraction of the cost, this discussion usually vaporizes.

Often one of the underlying issues is that someone does not want the data taken from the church’s property. This reason is ironic because every security expert would agree that your data should be kept in at least two places which would force the organization to take the data off the premise. Additionally, security experts agree that the data should be a considerable distance apart because of natural catastrophes – IE: 1,000 miles or greater because of floods, hurricanes, or tornadoes. One of the most efficient and effective ways to accomplish this is to send it to the cloud at another location. When you start factoring in the cost of doing this as one organization it simply does not pay, because the organization can not leverage economies of scale like a software company that serves thousands of clients. Economies of scale is also why churches can not hire proficient security consultants in the industry for the servers they have in their data center. Churches are hiring one person to take care of one organization instead of hiring one person to take care of thousands of organizations with the same hardware and software architecture.

Another aspect that is often over looked for on premise computing is the budgets for the infrastructure that houses the servers. The budgets for on premise computing is relentlessly being cut back and one of those repercussions is security. In fact one of the first things to be cut is the security. The opposite is true for companies that are in the business of offering cloud computing solutions. They invest their revenue into state of the art facilities so they can have better hardware, software, security measures, data centers, remote recovery procedures, etc. at their disposal and beat their competition. This is one of the reasons Icon Systems is one of the only software companies that offer 256 bit data encryption the entire time the user is logged in – a feature that other companies charge extra for. The data centers they use are seen as profit centers (how they make their money) and not overhead (loss money with no return) as in other organizations. Cloud computing companies see security as part of their bread and butter because without investing in it they would go bankrupt.

Can cloud computing be scary from the security stand point? – Yes it can be. Understanding where the fear comes from within the organization is job number one. Assessing that fear to see if it is a valid fear or a myth is the next step. If it truly exist then what steps are necessary to minimize the risk? Does the solution provider have the right protocols in place for it? Remember this important rule – cloud computing is just as safe if not safer than on premise computing.

Jay
Technical Sales – Data Conversions – Multisite Strategies
Icon Systems, Inc.

Email Marketing & the Importance of Testing

An excellent blog post about email marketing and the importance of testing. Using a simple example  they show you what should be thought about so your user/readers will enjoy getting emails from you and will act on them.

Read the full blog post!


IconCMO Reviewed by CPA firm

Icon Systems Inc felt it was important to have their software reviewed by an outside CPA firm to ensure we were delivering the most comprehensive software that is available today for churches. While there are many companies out there that tout their products are far more superior, few have actually been reviewed by 3rd party companies to see just how their software adheres to FASB regulations like the 95 and 117.

Continue reading


%d bloggers like this: