Internal Controls Without Micromanaging: Protecting the Church and It’s People

It’s an uncomfortable truth:
People steal from churches.

And not because they’re bad people. In our experience, it often starts like this:

A trusted employee is struggling financially. Groceries are tight. Bills are piling up. One day, while handling church funds, she realizes how easy it would be to “just borrow” $50 to help cover the week’s groceries. No one would notice.

Two weeks later, she takes $150.
Still no one notices.
Now the pattern is set.

This isn’t always about malicious intent—it’s about circumstances meeting opportunity. It’s about poor processes creating temptation. And that’s why internal controls are so important.

They aren’t just about protecting the church’s money.
They’re about protecting your people.

When there are no guardrails, we’re unintentionally waving temptation in someone’s face. But when systems are healthy, we create a culture of trust, clarity, and care.

✅ 5 Best Practices to Reduce Risk & Increase Transparency

1. Separate Duties

📌 One person should never control an entire financial process from start to finish.

• Example: If someone prepares cheques, they shouldn’t be the one who reconciles the bank account.

• Action Step: List out your financial tasks (e.g., receiving donations, making deposits, approving expenses, writing checks, reconciling accounts). Then assign at least two different people to every process.

• Pro Tip: If your team is small, you can lean on knowledgeable volunteers.  Also, for teams of any size outsourcing parts of your bookkeeping—like reconciliations or monthly reporting—can be especially helpful. Having a third party involved creates built-in separation and added accountability.

2. Require Dual Signatures or Approvals

📌 Spending should never be approved by one person alone.

• Example: Cheques/payments should always require two signatures. If that’s not practical for all payments, then at a minimum create a threshold that payments over $500 for example require the second signature.

• Action Step: Confirm your policy, who needs to sign and when.

• Pro Tip: Use a simple form for approval requests to create a paper trail, even if it’s digital. There are software’s like Pay Edge and Plooto that allow for virtual payments and signatures as well.  Dual signatures not only deters mistakes—it builds a culture of transparency.

3. Limit Access to Financial Systems

📌 Not everyone needs access to everything.

• Example: Your children's ministry coordinator may need to submit expenses—but not see bank balances or payroll details.

• Action Step: Review who currently has access to your accounting software and online banking. Adjust roles so access is only granted where needed.

• Pro Tip: If you’re using a cloud bookkeeping provider, ask them about access controls and audit trails. A good provider can help you configure everything properly.

4. Review Financials Monthly

📌 Regular oversight creates rhythm, accountability, and better decisions.

• Example: A monthly finance committee meeting to review budget vs. actuals, cash flow, and unusual activity.

• Action Step: Put a recurring monthly financial review meeting on the calendar with your pastor, treasurer, and a finance committee member.

• Pro Tip: Don’t just review the reports—talk about them. We often walk our clients through these reviews so they can ask questions, spot trends, and grow in confidence.

5. Document Your Financial Processes

📌 Systems should survive turnover.

• Example: A shared “how-to” document that outlines how offerings are counted, how to submit expenses, and what happens during month-end.

• Action Step: Create a one-page “Finance Quick Guide” for staff and volunteers. Include who to ask, what forms to use, and how to stay compliant.

• Pro Tip: If you work with a bookkeeping partner, they should help you keep these processes up-to-date and ensure consistency across ministries.

🔍 Why Transparency Matters

Transparency isn’t about suspicion—it’s about stewardship.

When people know your financial practices are clear and consistent:

• Donors trust you.

• Staff feel secure.

• Leaders lead with confidence.

• And your congregation sees integrity in action.

Transparency builds trust. Trust fuels generosity.

You don’t have to publish every transaction—but regular updates, openness about process, and clear communication make a huge difference.

Final Thought

Let’s not wait for a crisis to build better systems.
Internal controls don’t need to be heavy-handed or complex. They can be thoughtful, simple, and effective.

And if your church needs help putting some of these pieces in place, you’re not alone. Sometimes, bringing in outside bookkeeping support is the easiest way to gain separation of duties, increase oversight, and reduce stress on your internal team.

We’re here to serve churches—not just with bookkeeping, but with wisdom, systems, and support that bring peace of mind.