I once had a pastor offer me this advice: Lead pastors should always ask for a financial review or audit when stepping into a lead role at a new church. He had led several churches and shared some of the financial surprises he had encountered. (None were pleasant surprises!)
It may be uncomfortable to request. It’s a big expense and you don’t want to suggest mismanagement of funds, but you should still consider making the ask.
Let’s consider the reasons why:
- Transparency and Trust – A financial review or audit ensures that the pastor knows exactly where the church stands financially. It helps build trust between the leadership, congregation, and pastor.
- Baseline Understanding – Knowing the church’s debt, assets, and obligations helps the pastor lead responsibly and make informed decisions.
- Guarding Integrity – If financial mismanagement existed before the pastor’s arrival, having an independent review protects the pastor from being associated with those issues later.
- Biblical Stewardship – Scripture encourages accountability in handling resources: “Moreover, it is required in stewards, that a man be found faithful” (1 Corinthians 4:2).
How to Frame It
Rather than making it seem like distrust, the pastor can present it as:
- A step toward healthy financial stewardship.
- A way to ensure clear communication with the board and congregation.
- A best practice that protects both the church and its leaders.
It’s good stewardship, it promotes trust, and it protects everyone involved.
Sample Statement for a Pastor Requesting a Financial Review
“As I step into this new role, I want to make sure I understand the church’s financial picture clearly so I can serve well and help us move forward with wisdom. One way we can do this is by having an independent financial review. This isn’t about questioning past leadership—it’s about building on the foundation already laid and ensuring transparency for our congregation. A review will give us a clear picture of where we are, help protect the church and its leaders, and set us up for strong stewardship moving forward. I’d like us to consider scheduling a review, if we haven’t had one recently, so that we can move ahead with clarity and confidence.”
Review vs. Audit
- Financial Review – Less intensive, usually done by a CPA or qualified bookkeeper. It checks for consistency and reasonableness of financial records.
- Financial Audit – More thorough and costly. Conducted by a CPA firm, it tests internal controls and verifies financial statements. Typically done if required by denominational guidelines, loan covenants, or donor restrictions.
Practical Recommendation
- A review is often sufficient for most churches unless there are major concerns or requirements.
- A new pastor could request to see the most recent review or audit if one has already been done. If none exists, suggesting a review as part of the leadership transition is reasonable and wise.
Typical Cost Ranges
Costs vary widely depending on the size of the organization and the complexity of the audit/review.
CPA’s conduct financial audits with hourly rates ranging from $150 to $500 per hour. A small church could expect to pay up to $3000 for this service. Large organizations could spend $20,000 to $30,000.
A qualified bookkeeper or accountant can provide a financial review. Rates vary widely based on several factors, including the accountant’s experience, location, and the complexity of the review. Expect to pay between $75 and $150 per hour. A financial review might cost between $600 and $2,500 for small to mid-sized churches.
Key Considerations
- Church Size & Complexity: More transactions, ministries, locations, or restricted funds increase costs.
- Record Quality: Well-organized books and strong internal controls can lower audit costs.
- Location & Firm Type: Large firms or urban areas often charge more than local or specialized church accountants.
- Scope of Work: Adding reviews of grant compliance, payroll, or related organizations increases complexity and cost.
Recommendation for Your Church
- Request comparative quotes from 3–5 firms with nonprofit or church experience, detailing your budget, operations, and desired level of assurance.
- Match scope to need:
- If you’re new in the role or just establishing trust, a financial review or controls-oriented review may be sufficient.
- If transparency, donor confidence, or external requirements (e.g., lenders or denominational guidelines) are at stake, a full audit may be warranted.
- Plan ahead:
- Some churches alternate—doing a lower-cost review one year and a full audit in another.
- Consistently organized records and clear internal policies help control costs over time.
What if the church can’t afford a review, or they say “No”?
Is it a deal breaker? That is up to you. Pray for direction. Ask for copies of the latest bank statements and financial reports. Find someone who really understands finances to go over the documents with you. Schedule and appointment with the bookkeeper and treasurer. Ask lots of questions.
The best leaders are the most informed ones. They have clear understanding of their organization’s health. A financial checkup helps you prioritize and plan the path of the organization you’ve been called to lead.
Need to conduct a financial review? We do that! Give us a call!