Treasurers Guide Part 1

Treasurers are usually unpaid volunteers, if you are one of these, welcome to the club. Your job can range from the ridiculously easy to the incredibly complex. If you have just volunteered to be a treasurer for your local club, society, or charity, help is at hand. The right ground rules, simple systems, and a consistent routine will keep things tidy and stress free.

Typical Club Transaction

First off, it can be a pleasure, really, provided you can get along with your colleagues. Suppose your distant cousin happens to be secretary of your society and informs you via an email that a cheque was used to purchase some equipment but that it had gone missing along with the cheque book. Here are the steps you will need to make in order to write up the transaction in your account book:

1. Reply to your cousin asking how much the cheque was for.
2. Ask if they got a receipt and if anyone else in the club was involved.
3. Write again asking who the cheque was paid to since they don’t have a receipt (and also so you can verify yourself who, and how much, it was for).
4. Telephone your bank to cancel the cheque and cheque book and explain that it, and the cheque had gone missing.
5. Wait for the bank statement to arrive so you can find out if the cheque was not missing at all and had been cashed.
6. Write to your bank and ask them for a photocopy of the cheque.
7. Write a letter to the recipient of the cheque asking if they could supply a duplicate receipt.
8. Hand in your resignation.

What good looks like, a cleaner process

Here is the same transaction, done the easy way using simple controls and checklists. You save time, avoid guesswork, and have a complete audit trail.

1. Before purchase, the committee approves the spend and the supplier, and records them in the minutes.
2. The purchaser completes a simple purchase form and attaches a quote or link to the item.
3. After purchase, the purchaser submits the receipt, date, amount, and payment method to the treasurer.
4. The treasurer records the transaction in the accounting system, files the receipt, and schedules payment if needed.
5. The bank feed or statement later confirms the amount, which is reconciled to the recorded entry.

Example double entry for the purchase

• Scenario, Equipment bought for 125 by cheque number 1032, supplier ABC Sports.
• Debit: Equipment, 125
• Credit: Bank, 125
• File: Receipt, purchase request form, committee minute reference.

Club Ground Rules For Treasurers

Alternatively, you can go along to your first committee meeting and lay down some ground rules:

1. All large purchases must be agreed by the committee, the committee to agree on what constitutes large.
2. It is the purchaser’s responsibility to get a receipt, no matter how small the amount, no receipt, no payment.
3. Cheques must be signed by at least two committee members.

Getting agreement to the above will make your job a lot less stressful. Although the whole committee is collectively responsible for the finances, it is the treasurer’s job to ensure that everything of a financial nature is accounted for.

Make the rules concrete

• Define approval thresholds, for example, under £50, treasurer can approve, £50 to £250, chair and treasurer, over £250, full committee.
• Set submission rules, receipts within 14 days, one claim form per event, electronic copies accepted.
• Specify payment methods, prefer bank transfer, use cheques only when necessary, avoid cash where possible.
• List authorized signatories, keep this list in the minutes and with the bank.

Suggested approval levels by club size

Club type	Annual budget	Single purchase needing committee approval	Emergency spend limit, officer
Small hobby group	Up to 2,000	Over 100	Up to 50 with treasurer approval
Community sports club	2,000 to 20,000	Over 250	Up to 150 with chair and treasurer
Registered charity	20,000 and above	Over 500, or any new contract	Up to 300 with two officers

Adapt these to your constitution and local regulations. Record any limits in the committee minutes.

Trouble Free Treasuryship

This section outlines the things you should do to ensure your job as a treasurer is made as easy and trouble free as possible. A little regular effort beats a frantic scramble at year end.

Keep a steady cadence

Set aside a certain amount of time on a regular basis to keep the accounts up to date rather than throw everything in a shoe box and do it every quarter. The reasons are simple:

• Easier to pick up where you left off last time
• Easier to produce answers to your committee should they ask
• Helps to keep track of the bank account and the current balance
• Less time required overall

Weekly checklist, 15 to 30 minutes

• Enter new income and expenses, attach receipts.
• Pay approved claims and send remittance notes.
• Update your cash on hand count.

Monthly checklist, 30 to 60 minutes

• Reconcile the bank to the statement or bank feed.
• Review budget versus actuals and note any variances.
• Prepare a one page report for the committee meeting.

Time drivers to watch

1. How well you understand accounting.
2. How many transactions you process.

If you use a good accounting program it will certainly speed things up. Even if you only have a few transactions a week it will still save time, your end of year reports will be ready at the click of a button.

Tools and simple systems

What to look for in accounting software

• Bank feeds and easy reconciliation.
• Attachments for receipts and invoices.
• Budgeting and simple reports for committees.
• Multi user access with roles, view only for auditors.

If software feels like too much, start with a clear spreadsheet and consistent file naming. Move to software once volume grows or when reports become a chore.

Payment methods compared

Method	Pros	Cons	Good for
Bank transfer	Traceable, fast, low cost	Needs correct payee details	Reimbursements, supplier bills
Cheque	Two signatures, clear paper trail	Slow, easy to misplace, bank fees	Legacy suppliers, rare cases
Debit card	Convenient, instant payment	Requires strong controls and receipts	Online purchases, subscriptions
Cash	Immediate, no bank needed	High risk, hard to track	Small events, petty cash only

Learn Double Entry Accounting

An understanding of double entry accounting is a useful asset to have, since every piece of accounting software in use today uses it behind the scenes. If you do possess the knowledge, it will help if you need to present the accounts to an accountant. Book keeping is no different whether it is for a business or as a treasurer, your job is to record the flow of money into and out of the organisation. The labels you use to summarise these flows may be different, but the concept is the same.

Simple chart of accounts for a club

• Income, Membership fees, Donations, Grants, Event income, Merchandise sales
• Expenses, Equipment, Venue hire, Coaching, Insurance, Printing and postage, Bank charges
• Assets, Bank current, Petty cash, Equipment
• Liabilities, Accruals, Deferred income, for prepaid memberships
• Equity, Accumulated fund, Restricted funds if applicable

Common entries, quick examples

• Membership fee received 40 by bank, Debit Bank 40, Credit Membership income 40
• Reimbursement to volunteer for supplies 18, Debit Supplies expense 18, Credit Bank 18
• Petty cash top up 50 from bank, Debit Petty cash 50, Credit Bank 50
• Grant received for equipment 1,000, restricted, Debit Bank 1,000, Credit Restricted fund 1,000

Cash handling, reimbursements, and petty cash

Cash at events

• Use a float sheet that records opening float, takings, and closing balance.
• Two people count cash and sign the sheet.
• Bank the cash promptly and record the banked amount.

Reimbursements

• Use a simple expense claim form with name, date, purpose, amount, and bank details.
• Attach itemised receipts, not just card slips.
• Approve per your limits, then pay by bank transfer and send a remittance message.

Petty cash policy

• Keep a float, for example 50, and a petty cash book with receipts.
• Record every payment, recipient, and reason.
• Reconcile monthly, top up to the float level using the imprest method.

Budgeting and committee reporting

Build a simple budget

• List expected income by category, members, events, grants.
• List fixed costs, insurance, venue, and variable costs, events, kit, travel.
• Add a small contingency, for example 5 to 10 percent.

Monthly committee pack, one page

• Bank balance today, and at last meeting.
• Summary of income and spend this period.
• Budget versus actual, highlight any variances.
• Upcoming payments and renewals, for example insurance.

Audit, oversight, and continuity

Internal controls that help

• Segregation of duties where possible, one person approves, another pays.
• Two signatories for cheques and changes to bank mandate.
• Access control for online banking and accounting software.
• Numbered invoices and receipts, store documents in a shared drive.

Independent review

• Ask a suitably qualified person to examine the accounts annually.
• Provide bank statements, receipts, minutes, and your reports.
• Record their report in the minutes and share it with members.

Document retention, general guidance

Document	Keep for	Notes
Bank statements and reconciliations	7 years	Electronic copies are fine if readable
Receipts and invoices	7 years	Attach to transactions in your system
Committee minutes	Indefinite	Key for approvals and history
Grant agreements	Duration of grant plus 7 years	Some funders specify longer

Local laws vary, check your country’s requirements, especially for registered charities.

Year end, a simple checklist

• Reconcile all bank and petty cash accounts to year end.
• Chase any missing receipts and tidy coding.
• Produce income and expenditure, balance sheet, and budget for next year.
• Have an independent examiner review the accounts.
• Present to the AGM and file any required returns.

Mini case study, a smooth season for a youth club

• Problem, Last year, membership cash went missing and invoices were paid late.
• Actions, Switched to online membership payments, set approval limits, adopted monthly reconciliations.
• Outcome, 98 percent of fees collected on time, no missing receipts, committee received clear monthly reports.

With these practices in place, your role becomes manageable and even enjoyable. You give the committee clarity, you protect the club’s money, and you save yourself a lot of time.

Treasurers Guide Part 2 here…