3 Bookkeeping Mistakes Your Club Or NFP Might Be Making

The end of the financial year is a great time to take a look at your bookkeeping processes to see what is working and what is not.  The systems which once worked for you may no longer be appropriate, especially if you have seen a growth in membership.

Here are 3 key bookkeeping mistakes made by many clubs and not for profit organisations.  Are you making any of these?

1.  Keeping paper based records.

This is one of the biggest mistakes you can make.  Keeping paper based records is a security risk.  Anyone can access them and – even worse – alter them without you even realising.  (And I hate to ask it, but where are your backup records?)

2.  Using the wrong financial record keeping software.

Sometimes your accountant will advise you to use accounting systems which, although excellent at what it does, is too advanced for you or your treasurer to use.  If yours is a smaller NFP you don’t need an accounting system full of bells and whistles.  Often it can be hard to imagine that errors are made purely by accident. Choose club software such as Admin Bandit software which gives you everything you need to accurately manage your accounts without giving you a headache.

3.  Not checking your records with the bank.

This is a basic mistake but it happens more often than you would think possible.  Sometimes it is an oversight and sometimes it’s a confusion over who is responsible for the task.  Other times it is because one person actively prevents it happening, and that’s when they know there is something to cover up. You can’t be confident in your records, especially if they are paper based, without confirming the details with your bank.

Now is the time to check the systems you are using to see whether or not they are working for you, and if there is a better, more secure way to manage your bookkeeping and club finances.