How To Teach Finance To Your Board

As Treasurer, the management and control of the financial reports falls to you. Aren’t you lucky?

If you have read some of our interviews with treasurers, you will have noticed that they comment on how big that responsibility is especially when the members of the board or committee don’t really understand what you are talking about.  Many reports are approved on sheer trust and that isn’t a good basis for decision making.  It leaves treasurers feeling very vulnerable.

Sometimes it will fall to you to teach the board about how to read the reports and what they really mean. You might even have to show them that they are responsible for the contents of the report, whether or not they understand it.  For some members you might have to start at the beginning and show them what basic accounting and finance is all about.

Our Community has developed a simple, online course that will help you teach finance to the members of your committee.

The course starts at the very beginning and explains what financial reports are and what they should cover.  It gives readers a basic view of accounting, bookkeeping and financial controls.  It isn’t an in-depth course but it will give the members of a committee a better understanding of the role of the treasurer and what the reports actually mean.

The course is free to do and will help the members of your committee to support you better in your work as treasurer.

Interview With A Treasurer

We recently spoke to the treasurer of a community group about their role in the organisation and the challenges they face.

1. What do you love about the role of treasurer?

I know that people tend to think of small not-for-profit organisations as casual and with no real budget to worry about. That couldn’t be further from the truth. We are not-for-profit, yes, but we have a budget of hundreds of thousands of dollars to manage. We have all the demands of a regular workplace – salaries, overheads, budget limitations and the lot. You can’t just leave it to anyone to manage the budget. You have to know what you are doing. That’s why I took on the role.

2. What has been the hardest part of your job?

Well, when I first took over this role there was a big mess that I had to clean up. The previous treasurer had done some account fiddling and there was money missing. I had to go back through our financial history and look for irregularities and make sure that we were still financially viable as an organisation.

It was very fiddly and detailed work and even worse, there were a lot of people in the organisation who were quite upset at being duped. They blamed themselves for not keeping an eye on the accounts, too. And they should have.

3. So should the treasurer be accountable to someone?

Of course. For the safety of the individual as much as the safety of the organisation, the finances should never be left to one person to manage. I report to a board of management but even so, they don’t quite understand the accounts fully. Part of my job is to teach them so that they get the whole picture and not just what the treasurer tells them.

4. What would you like to change?

I’d like to change the attitude to the role. Everyone thinks that treasurers have a boring job but really it’s dynamic and involving. It’s strategic, too, not just about counting the numbers. It’s about long term planning so that the organisation can stay in business.

Without good monetary control that goes beyond keeping track of your bills, no committee or organisation will be able to function.