Most church treasurers don't sign up to be accountants.

Many have little to no formal experience in church accounting or bookkeeping. In many cases, they're just volunteers who see a need in their church and step in simply because someone has to.

Because of that, it is common for treasurers to turn to tools like Microsoft Excel. It's familiar, accessible, and feels like a safe place to start when managing church finances.

And in many cases, that is perfectly appropriate. For smaller churches that have simple finances, Excel can be a responsible first step. The challenge will come as your church begins to grow, the its financial needs grow along with it. This begs the question that many church leaders have:

"So, should I use Excel Sheets for my church's accounting?"

TL;DR Excel can be a responsible starting point for small churches with simple finances. But as a church begins managing multiple funds, recurring expenses, and increased financial responsibility, spreadsheets quickly become time-consuming and harder to maintain. Most churches eventually benefit from using church accounting software—while still using Excel for viewing and sharing reports.

Financial Disclaimer: This article is provided for informational purposes only and does not constitute professional accounting, tax, or financial advice. Church tax laws are complex and subject to change based on federal, state, and denominational regulations. ChurchTrac is a software provider, not a CPA firm. We strongly recommend consulting with a qualified tax professional or certified public accountant before making financial decisions or filing tax-related documents for your ministry.

Why Excel Is Better Than Pen and Paper

Before addressing the limitations of Excel, it's worth saying this clearly: using Excel is already a step in the right direction. Compared to pen and paper systems, spreadsheets provide structure, visibility, and a level of consistency that are essential for stewarding the church's finances.

With Excel, there is already a low barrier to entry, and it can certainly be helpful for small churches that run everything out of their General Fund. If you have just one person managing all of your finances, Excel can give you basic organization and clarity, helping churches move beyond handwritten records and scattered notes.

Key takeaway: Every church should use something. Excel is often the first responsible step.

When Excel Still Works Well for Church Accounting

Excel can be a reasonable solution for church accounting when financial activity is simple and limited in scope. In general, Excel may work well for your church if:

• You have just one bank account.
• Your church primarily operates from one fund.
• You do not run payroll.
• You do not process staff reimbursements.
• Monthly expenses are predictable and consistent.
• Only one person manages the finances.

Excel is not wrong to use for your accounting needs as long as you understand its limitations.

Where Excel Starts to Break Down

As your church grows, the complexity of its finances grows with it.

This is often the point where Excel begins to show its limitations. Spreadsheets aren't designed to scale with increasing financial activity, multiple funds, and the need for clearer oversight and accountability.

Excel commonly stops working for a church's finances when the church begins to manage:

• Multiple designated funds (building, youth, missions, etc.).
• Recurring monthly expenses that require consistent tracking.
• Payroll/clergy wages, housing allowance, reimbursements.
• Budgets for multiple ministries.
• Monthly reconciliations and audit preparation.
• Shared access for multiple church leaders.
• Treasurer transitions.

The Hidden Cost of Using Excel for Church Accounting

Excel may seem like the inexpensive option for your bookkeeping needs, but it will cost you in ways that do not show on your budget line. These costs are usually paid in time, stress, and the emotional toll placed on church treasurers and volunteers.

As financial complexity increases, spreadsheets require more manual entry, constant formula maintenance, and careful oversight. What began as a simple system slowly becomes a source of frustration, pressure, and burnout—especially for volunteers who already carry significant responsibility.

Key idea: The issue isn’t cost—it’s time, risk, and sustainability.

When Churches Should Consider Accounting Software

When do you know it is time to shift to an accounting software for your church?

Your church may be ready for accounting software if:

• Financial questions require digging through spreadsheets to find answers.
• Reports are constantly needing to be rebuilt.
• Multiple leaders need access to financial data.
• Tracking designated funds has become difficult.
• You need to track payroll and reimbursements. 
• You are tracking multiple budgets.
• Your treasurer is overwhelmed.

These signs don't indicate that you have failed. Instead, they are simply a reflection of a growing ministry with increasing responsibilities and needs. And at this stage, many churches discover that accounting software doesn't add complexity; it actually reduces it.

Using Church Accounting Software and Excel (The Reality)

What churches need to realize is that Excel can still be useful to them as a tool, not the system. You can still use Excel as a tool for your reporting, planning, and presentations. But having software dedicated to church accounting provides a centralized, reliable source of truth that reduces manual work and brings clarity and consistency to your finances.

Having software also makes financial transitions easier. When a church relies on a dedicated accounting system as its source of truth, new treasurers and leaders aren't forced to decipher complex spreadsheets or rebuild reports from scratch. Instead, they step into a system designed for continuity, accountability, and shared understanding.

ChurchTrac Helps You Move Beyond Spreadsheets

Having a system like ChurchTrac can help your church centralize its records, automate tracking, and generate reports at the click of a button.

Instead of forcing a platform that was never designed to handle your church's finances, accounting software provides tools built specifically to support fund tracking, transparency, and long-term stewardship.

The Question Churches Should Really Be Asking

So, to answer the initial question—should my church use Excel? A better question may be this: Is Excel still serving your church? Or is it slowing it down? 

At the end of the day, churches are called to steward God's resources faithfully. Choosing a system that supports clarity, accountability, and sustainability isn't about tools—it's about wisdom. The right system should work for your church, not against it.

Church Accounting FAQs 

Is Excel acceptable for church accounting?

It can be for small churches with simple financial activity. Excel can be an acceptable and responsible starting point. It offers basic organization and visibility, especially when finances are limited to a single fund and managed by one person. The challenge arises when financial complexity increases and spreadsheets begin requiring excessive manual work to maintain accuracy.

At what size should a church move beyond Excel?

There isn’t a specific attendance number or budget threshold. Instead, churches often outgrow Excel when they begin managing multiple funds, running payroll or reimbursements, preparing regular reports for leadership, or sharing financial oversight among multiple people. When answering basic financial questions becomes time-consuming, it may be time to consider accounting software.

Can we still use Excel if we adopt accounting software?

Absolutely. Many churches continue to use Excel even after adopting accounting software. The difference is that Excel becomes a supporting tool—for reporting, planning, and presentations—while the accounting system serves as the central source of truth for financial data.

How do we transition without overwhelming volunteers?

The best transitions are gradual and well-communicated. Start by choosing software designed specifically for churches, migrate key financial data thoughtfully, and provide simple training for those involved. Most importantly, focus on reducing manual work rather than adding new complexity. The goal is to support volunteers, not burden them.