Dear Friend,
Your End of Month Report (EOM) is an important part of your work. If completed correctly, it can successfully designate the support money that was used for ministry and keep much of the support God gives your ministry free from income taxes. If done incorrectly, it can add headaches, stress, and irritation to your already busy schedule. Here are a few basic reminders to help you this month, and each month, as you prepare your EOM.
The EOM is a report of money that you received as support and then used for ministry. For a given month, you are reporting three things:
(1) You are reporting all the money that was available to your ministry. This is why you enter the opening balance from your First Financial Bank business account and your payroll voucher numbers. (2) You are reporting all the money that was and was not used. This is why you enter the ending balance from your First Financial Bank business account. (3) You are reporting how much of the money used was for ministry. This is why you enter your ministry expenses and submit receipts, when required.
Using the correct numbers is very important. On the EOM, you are reporting, from the previous month, the money that came in and how it was used. Because of this, you must be careful to report the correct month’s balance and income. Here are some things to bear in mind:
1. Use the opening balance from before the report month started. This balance should be the last posted balance from just before the payroll deposit was made at the end of the preceding month. For September’s report, use the last posted balance from your First Financial Bank business account just before the August deposit was made.
2. Report on your ministry spending throughout the month in question. For September’s report, report on any ministry expenses from September.
3. Use the closing balance from just before the report month ended. This balance should be the last posted balance from just before the payroll deposit was made at the end of the month. For September’s report, use the last posted balance from your First Financial Bank business account just before the September deposit was made.
Please Note: If this is not the way you have been doing things, please change immediately to ensure the most accurate reporting and the most beneficial results. Thank you!