Church grant accounting

If you received the grant in 2023, you would recognize that income in 2023. This is reflected by your Income Statement and Income account. The money from that grant is also on your balance sheet as an asset, presumably as cash in a bank account. The balance of that cash account on your Balance Sheet is what carries forward year over year, period over period. If you were to move it forward on your income statement, you would be breaking some accounting rules and essentially be saying you've received income in the current period which isn't accurate.

As far as expenses go, you would book those in the periods they occur to various expense accounts like supplies, rent, etc.  As you spend the cash in the bank, your Balance Sheet cash account will decrease as well as liability account like accounts payable.

@FWUCCOH 

Is this a restricted grant?  If not, then @AccountantDave is correct - it is all income when received.  However, if this was a restricted grant (I assume that's the case), then you would record the grant to an equity account when received and then create a journal entry to move the funds from equity to income based on the grantor's restrictions - debit your restricted grant equity account and credit the appropriate income account.