Still The Same
Much has been written regarding the CARES Act and the PPP loan & EIDL programs. I have updated the original summary of these programs on our website almost daily as the rules continue to change. For this article, anything prepared as I write would surely be out of date by the time the article was published.
Our advice now remains the same as it has for over two decades. For the financial health and wellbeing of your church, create and live on a budget. Yes, it takes time, but it is worth it. Also, maintain a cash balance of 3-6 months of operating expenses. Spending 100% of what comes in leaves you vulnerable when a downturn occurs.
Many are now forced to cut back much more severely due to a lack of margin.
Those who practice these principles (yes, these recommendations are based on Biblical Principles) will have more peace and will also save money in the long run, especially when borrowing for a mortgage.
Banks provide a more favorable interest rate to those that practice these financial disciplines. Also, in the coming years, be prepared to answer when your bank asks, “how did your church do during the Covid-19 crisis?”. It’s never too late to start.
Delano Sherley is a CPA and president of Delano Sherley & Associates, Inc. He can be reached at 513-737-1314.
Delano Sherley & Associates, Inc., 8366 Princeton-Glendale Rd., Suite B5, West Chester, OH 45069. Email Delano@dsacpainc.com Website: www.dsacpainc.com
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