Framework of Church Accounting in Nigeria: Pragmatic Examination of the Problems, Prospects and Financial Implications of Proliferation of Churches

Abstract

The study focused on framework of Church Accounting in Nigeria: Pragmatic examination of the problems, prospects and financial implications of proliferation of churches.  It was aimed at identifying the core accounting practices in churches and relating them to standard accounting practices for non-profit organizations and also examined how the resources generated by the churches are utilized for growth and development of the churches as well as the welfare of members.  The study made use of both primary and secondary sources of data. Research hypotheses were formulated and tested to verify the facts gathered on the study. The analysis revealed the following: Church accounting is not significantly different from accounting in non-profit organizations.    Although there are minor differences in practice, the underlying principles are the same.  Secondly, church accounting system is significantly necessary in contemporary times to ensure proper accounting of resources and for future decision making with respect to financial dealings, growth and development.  Based on the empirical and non empirical findings, the researchers are of the opinion that although church accounting is non-profit oriented, efficiency should not be sacrificed for subjectivity. Church accounting practices should be properly organized by employing qualified accounting personnel and conduct all financial affairs to sustain confidence and trust of members. Lastly, church administrators should undertake to train, educate as well as instruct members involved in the accounting functions and practices in order to have accounting system that would pass basic test of integrity.

Keywords: Church accounting, tithes, thanksgiving offering, vows & pledges, gifts & donations