There was a time when many churches had a separate bank account for each area of ministry in the church. 

They would have a primary bank account for tithes that was used to pay bills, another bank account for missions, another for building funds, another for youth and kids, etc. 

Some churches had five or more separate accounts, because it was easier for the bookkeeper to track using handwritten journals to provide accountability.

Modern accounting software has eliminated the need for multiple bank accounts.  In fact, it isn’t even considered good accounting practice anymore.  Donations can easily be separated and accounted for within the software, all from one bank account.

Here are some factors to consider when using multiple bank accounts:

1.  The “Human Factor”.  Multiple accounts create more opportunities for deposits/withdrawals accidentally being made from the wrong account.  Keep it simple with one account.

2.  The “Temptation Factor”.  It would be easier to hide fraudulent activities by moving monies around from account to account.  Having just one account makes it harder to hide fraud.

3.  The “Workload Factor”.  Every bank account requires work to manage and reconcile.  Save time by streamlining accounts.

4.  The “Fee Factor”.  Many banks charge fees for checking accounts.  Save money with only one account.

5.  The “Blank Check Factor”.  Ask any bookkeeper if they would rather be responsible for four checkbooks or just one, I know for sure what they are going to say!  Keeping track of checks can be a daunting task. Again, keep it simple.

6: The “Hacker Factor”. Every account you have is an opportunity for criminals to steal account information and take funds.  Reduce your risk by reducing your accounts.

Best accounting practice would be to move all your accounts into one or two primary accounts and utilize your accounting software to easily track and separate funds.

We understand that canceling bank accounts, moving funds, and recreating your chart of accounts in your software might seem a monumental task.  Trust us, it will be well worth the work after completing.