Setting up your church chart of accounts correctly is the mandatory first step toward accurate fund accounting. It is the foundation that all other accounting tasks will build upon, and will be required to demonstrate financial stewardship to your congregation.

NOTE: This video references nonprofits, but the same principles and practices apply to churches.

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What Is a Chart of Accounts?

The chart of accounts for your organization is really just the “list” of your accounts. Chart just makes it sound fancy. Furthermore, this list is created by your organization to meet its unique needs.

To this end, accounts represent the five financial buckets of your church:

Asset = what you own = 1000 range
Liability = what you owe = 2000 range
Equity = overall worth = 3000 range
Income = money you get = 4000 range
Expense = money you spend = 5000 range

Pro Tip: Create accounts only for what you need. If you don’t have any debt, don’t worry about creating liability accounts. Likewise, if you don’t own anything outside of the money in the bank, don’t worry about fixed assets. You can always add more later as your organization grows and changes.

What Makes It Specific to a Church?

This is where fund accounting emerges. So let’s take a look at some examples of funds.

Equity accounts reflect the value of your assets, minus your liabilities. A fund is a breakdown of your equity. In other words, the money you have, minus the money you owe, is your worth. Furthermore, the money you have and owe can be intended for a specific purpose (fund). Therefore, you will need an equity balance to represent the fund’s overall worth. So if you know what funds need to be created, you can set each up as its own equity account. Equity is numbered in the 3000 range:

3000 – General Fund
3100 – Missions Fund
3200 – Building Fund
3300 – Special Projects Fund

Each of the above examples will have its own balance and value across your entire organization.

Sample Church Chart of Accounts

Download our free sample church chart of accounts and compare it to yours. You can use it as a starting point. Keep what you need and remove what you don’t.

Pro Tip: Don’t be afraid to customize. Think about the reports your team or board will want to see. Keep it detailed enough to be useful but simple enough to manage with confidence.

If you haven’t done so already, sign up for our free 5-Day Church Accounting Email Course where we’ll delve deeper into the subject. We’ll talk about church financial reporting, what to manage in your accounting on a day-to-day basis, and so much more!

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Why Use A Church Specific Software?

Managing your church's finances in Excel might seem simple at first, but as your needs grow, so do the risks and limitations. Aplos is purpose-built for churches and nonprofits, offering smarter tools, fewer errors, and built-in fund tracking that Excel simply can't match. Here's how they compare side by side.

Common Mistakes Churches Make (and How to Avoid Them)

Using vague account names
Fix: Use specific labels like “5100 – Children’s Ministry Supplies” instead of “Ministry Expenses.”

Duplicating accounts for each fund
Fix: Use fund tracking, not separate accounts for each fund's expenses.

Overcomplicating the chart too early
Fix: Start simple. Only add accounts as needed.

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Final Thoughts

Your church chart of accounts is more than a financial list. It forms the foundation of your reporting, budgeting, and overall stewardship. When organized thoughtfully, it helps your church stay transparent, reduce errors, and make informed decisions with confidence.

Whether you're building a chart from scratch or improving an existing one, focus on clarity, simplicity, and alignment with your reporting goals. As your ministry grows, your chart should grow with it.

If you’re ready to make setup easier, Aplos provides tools designed specifically for churches. You can track funds, generate reports, and manage your accounting with ease.

Start your free 15-day trial today and build your chart of accounts the right way.

Frequently Asked Questions

What is a church chart of accounts?

It is a structured list of accounts used to track a church's finances. It categorizes assets, liabilities, income, expenses, and equity, helping churches manage and report finances clearly.

How is a church chart of accounts different from a regular one?

Churches use fund accounting to track donations by purpose. This requires a separate equity account for each fund, which is not common in traditional business accounting.

Can I change my church chart of accounts later?

Yes. Your chart should evolve with your organization. You can always add, remove, or reorganize accounts as your needs change.

How many accounts should a church have?

Enough to give you the detail you need in reports, but not so many that managing them becomes confusing. Start with key categories and build from there.