Financial Reporting allows for a club or association to keep a regular record of income and expenses as well as assets and liabilities.
The member responsible for the financial management in any club or association is the treasurer. The treasurer is responsible for reporting on what has happened to the club or association’s funds and for devising the most effective methods of using available funds.
The treasurer needs to prepare basic financial reports each month to be presented at each monthly meeting. By using a cashbook, the treasurer can reconcile the club or association’s accounts and draw a list of creditors and debtors at the end of each month.
All reports that are prepared should have accurate and reliable information. It is important to use the correct accounting processes and procedures when developing reports.
Preparing and reviewing financial statements
Time constraints within smaller clubs and associations or the difficulty in finding experienced bookkeeping assistance, often results in minor errors in the financial statements.
When preparing or reviewing financial statements, ensure the reports are accurate in displaying the financial position of the club or association.
Ideally, a club or association should produce monthly financial reports. If that’s impractical, quarterly or biannually should be acceptable. External users such as banks, government and suppliers will generally only require financial statements to be provided annually.