Profit and Loss Accounting systems

Beware of the accounting practice used in some churches of having income completely separated from expenses on a “profit and loss” financial report.  This makes it look like you are spending a lot more of the church's money than is actually the case.  A proper ”Not For Profit” or “funds” accounting system (as opposed to a standard business accounting system) will allow for income and expenses to be booked against a single line item, giving a net.  Most major accounting packages can be set up as a “Not For Profit” system.