It’s not that your reports aren’t important; in fact, they are vital to the financial health of your organization. The point we want to make is that you don’t need to stress about filing a report. If you’re a new treasurer or feeling a little nervous, you can first write down your key points on paper. But as you gain confidence and insight, you’ll find it easier to take a look at your accounts and provide succinct, yet relevant information right away.
Of course, the use of accounting software helps. The right software automatically generates the figures you need in treasurer’s report format, so you don’t have to write any financial statements. Plus, these numbers are self-contained, so you can simply hand them over to your secretary to file when you’re done filing your report. However, if you do not have the proper software, you will need to prepare financial statements based on the information in this article.
Whichever accounting method you use, the structure of the ideal treasurer’s report is the same:
- You start with a summary
- Continue with an overview of your organization’s income and expenses
- Expand the description by providing more detailed financial information for specific activities and areas of operation
- End the cleaning business.
Summary
Begin with a brief summary of your accounts, including items important to the committee’s attention and your opinion of your current financial situation. These may include:
• Unexpected income or expenses
• Past due money owed to your organization
• Financial problems, such as poor cash flow or relying too much on credit and savings
• Updates on legal requirements, such as GST.
category report
Also known as a cash report, this is a summary of your primary bank account income and expenses to date. Start with the total amount earned and spent. Then break this down by category, comparing each against your budget (the right software automatically generates this comparison for you).
For example, your organization’s income might have been $3,500 per month. Of this, $3,000 came from grants, which you anticipated in your budget. The other $500 came from events, which he had budgeted to earn double.
Meanwhile, your expenses for the month could have been $1,150. Of this $150 was spent on events, $100 less than expected. At $1,000, your operating expenses were your top cost, which matches your budget forecast.
Other bank accounts
If your organization has other bank accounts, you should briefly describe the balances and transactions. For example, your savings account might contain $416 and have earned $3 in interest this month. If there is a lot of activity on those accounts, they may also require a detailed report.
Petty money
Note how much petty cash was spent during the month and on which major items. This is a good time to have the other signatories on your committee sign a cash check for the full amount of the receipts submitted to increase your petty cash back to the original amount.
events
This is where you’ll go into more detail about individual events, whether for fundraisers or other purposes, drawing attention to both income and expenses. As with your Category Report, you should compare these figures to your budget (again, the right treasury software automatically generates this comparison for you). For example, a sausage sizzle may have earned $200 and cost $50, which was in line with the amount you budgeted. By contrast, your annual Christmas party might not have earned anything, but it would cost $1,000. This loss is not necessarily a bad thing; you may have planned the party to be a purely social event and anticipated a loss.
member dues
As before, this is your opportunity to go into more detail about the income earned from member fees. If relevant, note which groups or sections of your organization this comes from. For example, your junior members may have contributed $2,000, or 60%, of their membership dues for the month.
It is also useful to provide information on:
• The percentage of expected fees that have been received so far this year
• Overdue installments received from previous years
• Dues received in advance for the next year.
Checks for Ratification
Bring the checks that need to be ratified to the attention of your committee. Essentially, it’s about confirming that money has been spent on goods or services that your committee has pre-approved.
And that is!
Assuming you’re okay, your committee will approve your report with the motion and second that it be accepted as accurate. If there is a problem, they will probably accept it on the condition that you make the necessary amendments and resubmit your financial statements for your records.
Wait… some more tips
- Keep the committee’s attention: Aim for a report that is comprehensive, yet concise and easy to understand.
- Avoid using jargon: Your committee members may not have good accounting skills, so deliver your report in simple, everyday language.
- Add real value to your report by analyzing the financial information at hand. For example, how might trends or patterns be applied to future strategic planning? And what can be learned from an unsuccessful fundraising activity?
- Always sign and date your report.
- Circulate copies of your report well in advance of your monthly meeting so committee members have time to read and digest the information.