Keeping accurate accounts
How an association organises its accounts, payments and record keeping will vary depending on the size and complexity of its financial situation. A small association may have a voluntary treasurer who 'keeps the books' while an organisation requiring more skilled accounting services might employ its own finance staff or engage an accountant or book-keeper.
Good financial practices
It is good financial practice to develop policies and procedures regarding:
- preparing budgets;
- recording income received such as grants, membership fees, donations, fundraising, sales of goods and interest;
- developing a system to record and pay necessary bills;
- recording and authorising petty cash transactions;
- where necessary, recording taxation information, such as goods and services tax, superannuation, fringe benefits, income tax records and withholding payments;
- where necessary, recording salary and leave payments, and reimbursements to employees. Time and wages records must be kept in accordance with the relevant award or industrial law;
- undertaking bank reconciliations (i.e. checking association records against bank records);
- maintaining an up-to-date register of association assets; and
- maintaining an effective and secure filing system for insurance policies, leases, contracts and funding agreements.