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Getting Started

Keep in mind that staff size varies from parish to parish so you might find yourself taking on some of the above roles.

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Finances

Meet with the Finance Council
Find out from the Bookkeeper or Business Administrator what the average monthly income and expenses are for the parish
Review the sources of income (offertory, donations, grants, etc.) and any major recurring expenses (utilities, salaries, diocesan obligations, etc.)
Become familiar with Diocesan financial policies and guidelines. Most dioceses will have handbooks outlining the do’s and don’ts. Become especially familiar with what spending levels / types require diocesan approval and which can be approved in house
Money counters should not be related and should be rotated if possible. All money counting should be done on church premises.
Become aware of the accounts the parish has (checking, savings, money market, etc. and their approximate balances

Checks and Balances

Bookkeepers and Business Administrators should never be signatories on parish checking accounts. Alternate signatories should be a deacon or trusted layperson. Notify the diocese as to who the authorized signatories are and when they will be exercising their duties as such
If not already in place, initiate a check request process that documents all requests for the spending of parish funds. The check request should show the amount of the check, who it is for and the date it is needed. Receipts / Invoices should be included.
Ensure all second collections are properly separated and remitted per diocesan instructions in a timely manner.
Make sure all parish ministries submit monthly statements in a timely manner (if they have a separate checking account). I recommend they not have separate accounts if possible.
Keep copies of all check stubs and invoices for future reference.
Establish a protocol with your Business Administrator as to which expenses require explicit approval from you, either an expense category, dollar limit or both. You can modify the parameters as you become more familiar with each other.

Administrative Costs

Remember the status quo isn’t always the way to go
Review things like copier contracts, telephone service, donation expenses, etc.
Some copier contracts have escalation clauses that allow the vendor to increase the monthly payment by as much as 10% per year of the contract. This can increase the cost of the monthly payment by as much as 50% over the course of a five-year contract.
Phone services are now available at a fraction of the cost of the old land line contracts. Check into Voice Over Internet Protocol (VOIP) service. There are a lot of technological advantages and it is considerably less expensive.
Review internet service to see what you really need versus what you currently have. In some cases, you may only need one server rather than two or three.

Investments

Not all parishes are blessed with excess funds to invest but if you are in that situation, check with the diocese to see if they have an approved investment vehicle (group of funds) or a diocesan office that specializes in investments in socially responsible investment funds.
These funds can earn as much as 10-25% per year versus checking accounts that earn nothing and money market accounts that earn 0.15% per year. They should also be liquid enough to allow you to withdraw money quickly (one or two days notice).
Check into whether there is an endowment office at the diocese. Endowments allow parishioners to leave money or property to the church from their estate or to donate directly. The endowment provides a perpetual income to the parish. If an endowment can be established, do so and keep parishioners informed about it so it can grow.
Always keep enough in your parish checking account to meet monthly expenses and pay for any unexpected expenses like broken water lines, building damage, etc. Try to have at least six months expenses in your account.

Insurance�

Know what the diocesan insurance covers and what your parish deductible is.
Many major repairs such as roof damage from storms, burst water pipes in the building(s), fire damage, etc. can be covered by insurance. It never hurts to ask whether a particular expense is covered. If the cost of the repair / replacement is more than the deductible, it is worth asking.

Final thoughts

Take advantage of diocesan capital or other campaigns for which your parish can receive a rebate. These rebates can be applied to projects at the parish and are given as an incentive for parishioners to donate. This is, in essence, free money for the parish.
Remember that if you designate a project, advertise it and start it. Parishioners will donate more when they see construction and activity. A pile of dirt and some pipe being laid is worth a hundred bulletin articles about what the project will be some day.
The money needed to run the parish is from the people of the parish. The parish is the steward of that money and has to ensure that it is spent responsibly and wisely with the best interests of the parish as the goal. Trust is something that is earned. Transparency is of the utmost importance. Not every parish financial or business decision needs to be publicized but there should never be any secret agendas or accounts. All major items should be discussed with the Parish Finance Council.
Lastly, remember that as the pastor, you are ultimately responsible for how and when parish funds are used. As all good shepherds do, put the welfare of the flock first and that includes the parish financial welfare.