A club's bank account will show both inflows and outflows:
One of the club treasurer's most important tasks is to show all inflows and outflows on a 'cash account' - a kind of ledger - and to reconcile it with the bank statement on a monthly basis. Two principles underlie the cash account:
Cash accounts can be kept manually, but it's a lot easier to use a spreadsheet. You can also purchase special software from a number of sources. Whichever method is used, the cash account should show the complete trail of transactions with enough clarity to satisfy the club's auditor at the time of the audit.
Click here for an example cash account.
Although the cash account is updated monthly, treasurers don't have to run them from the last day of one month to the last day of the next. It can be easier to end each month on the 28th rather than the actual month-end, leaving the last two or three days to go into the next month. The treasurer can then order the bank statement for, say, the 7th of the month to ensure that they get the correct balance as at the 28th, the end of the accounting month.
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