Cash Receipts Journal Record the total amount of money ( cash or checks ) the day it is received and the source of each amount , i . e ., contributions , grants , sale of advertising , etc .
Cash Disbursements Journal Record each disbursement from each bank account . Disbursements made by check should be recorded with the check number , date of check , the payee ( who the check is made out to ), amount of the check , and the purpose of the disbursement . For savings accounts without preprinted checks , record the date of withdrawal , amount and purpose ( use ) of the funds . Photocopy the withdrawal slip and fi le with cash receipts journal to create a record of who withdrew the money .
II . General Ledger Associations with many different sources of receipts or many different categories for disbursements , particularly those that receive foundation grants that restrict the use of the grant money , may need to set up a General Ledger . The General Ledger is essential for an organization that wants to use the accrual basis of accounting which records amounts owed to the organization ( receivables ) and amounts owed by the organization ( payables ). If you think your association needs a General Ledger or has significant payables or receivables , you may choose to seek assistance from a trained accountant to set up your system .
The Treasurer or another designated person should prepare a written financial report for each board meeting . The report should present the results of each month ’ s activity . At a minimum , the report should include the following elements : � Cash available at the beginning of each month � Total receipts during each month ( with breakdown by source ) � Total disbursement during each month ( with breakdown by type – i . e . postage , supplies , printing ). � Cash available at the end of the month
As the organization gets larger , you may choose to use a more standard format for financial reports , such as the Balance Sheet and Statements of Support , Revenue and Expenses . You may also want to compare the funds received and disbursed to the budget adopted by your board . Even in a very small organization , it is essential that the bank reconciliation should be available to prove that the amount of cash reported on the financial statement at each month end agrees to the reconciled bank statement . Reconciliation involves adjusting the bank balance for outstanding checks and deposits . If no one in the organization is familiar with bank reconciliation , ask an accountant or bookkeeper to teach the treasurer a simple reconciliation method .
Neighborhood Organizational Handbook – Arlington , Texas 16