3 Essential Qualities Every Good Treasurer Must Have

A volunteer treasurer needs to be organised and good with figures. They must ensure they are on top of the situation from the very first day of the job. They should be passionate and motivated. They need to be trustworthy and available when the charity or nonprofit has a query or requires a report. The list is seemingly endless!

On top of these traits, and the many others we could name off the top of our head, there are three other qualities which a treasurer must have in order to make their job easier.

Professionalism

Regardless of how relaxed the organisation is, as a Volunteer Treasurer, it is your job to represent the NFP in a professional manner. Having a solid base of professionalism will make the job simpler, and you never know who may be watching. Remember your volunteer role may lead to other opportunities in the future. Conduct yourself professionally in all situations and show the NFP that you have a solid work ethic regardless of whether it is a paid or volunteer position.

Strength

A Volunteer Treasurer needs to be tough and strong. You should always stick to your guns and follow the rules and policies set in place. If there are no rules, then create them. Establishing solid business practices from the start will hold you in good stead. Financial control policies are there for an excellent reason. They prevent bookkeeping errors and fraud. Don’t let the team walk all over you or ask you to bend their rules just because they don’t like them. Stick to the rules and your colleagues will soon understand that you mean business.

Creativity

If your nonprofit has not embraced modern technology or made any changes in the last ten years, then you may have to put your creative hat on. Just because it has always been done that way, doesn’t mean it has to stay like that. A Volunteer Treasurer’s position involves a lot of responsibility, and often there are systems you can utilise to cut down your hours or improve your overall effectiveness. Look at software options such as Admin Bandit or endeavour to fine-tune those reports so they are more efficient. There are always alternative methods - you just need to find the ones which will assist you to streamline the procedures and save the NFP time and money. Do your research to understand what will fit the needs of the NFP and, of course, yourself.

Good luck!

End of Financial Year - Changing Roles

 

The end of the Financial Year is enough to drive most volunteer treasurers crazy but sometimes it is the time a treasurer chooses to resign from the role.  He or she can resign knowing they’ve completed their year’s end work satisfactorily.

 

While the focus for most committees is getting the financial reports completed on time and dealing with audits, others may also need to look for a replacement treasurer.

Throughout this blog we have shared information which will come in useful at this time.  Here are the posts we think are most important.

First of all, consider your public speaking skills.  Not only will you need them when you present your reports, you’ll need them to help recruit your replacement.  How good are your public speaking skills?

Finding volunteers isn’t easy although most small committees tend to recruit on the spot.  Unfortunately that often means someone is pressured into accepting the role.  You really need someone who is committed to the role so consider scouting for new recruits regularly.  You never know when you might need them and it’s a great way to introduce them to the organisation before they accept a role.  If you know you will be leaving, find your replacement before you go.

Handing over to the new treasurer should not be a complex job.  Arrange to meet with the new treasurer so you can provide an overview of the finances of the organisation as well as to discuss any other issues.

Now, if you happen to be taking over the role and you’ve never been a treasurer before, you will find a lot of useful information on our sister blog at Admin Bandit.  Starting from the very basics, the posts will help you settle into your role and comfortably take control.

Good luck with the end of Financial Year fun!

Handing Over To A New Treasurer

Taking over the role of a treasurer can at first appear a bit daunting and with many challenges but it is not as difficult as what you may think it is.  An important part of taking over the treasurer’s role is to make sure there is a proper handover as this allows you to start off in a positive way.  Arrange to meet with the previous treasurer to get an overview of the finances of the organisation as well as to discuss any other issues.  

At this meeting you should also:

• Get copies of the most recent financial reports that should include the financial statements, annual budgets as well as other supporting documents such as reconciliations and the previous audit report.
• Obtain copies of recent Finance Sub Committee minutes of meetings as well as the documents that are usually prepared and presented by the treasurer at these meetings.
• If you are already a board member you should have a policy and procedure manual that includes the Terms of Reference for the Finance Sub Committee but if you are new to the board then ensure you obtain copies of these documents.  
• If the organisation has accounting software such as Admin Bandit then arrange to receive training or support to use the software.  Also make sure you have your own password and for control and security purposes deleted any previous users.   
• Ideally the organisation will have a detailed financial management and procedures manual that outlines exactly what you need to do as the treasurer.  If so, then take the time to review it but if one doesn’t exist then once you are settled into the role you should prepare this manual.
• The previous treasurer should also hand over the cheque book, receipts book, purchase order books, bank statement, petty cash system and any other relevant information.  
• Make sure you receive any current outstanding accounts that need to be paid as well as details of any contracts such as maintenance agreements, cleaning contracts or any other contractual arrangements.
• Make sure you receive details that relates to income that you may expect to receive.  For example, this may relate to grants, subscription fees or enrolment fees.  
• If your organisation receives grants then make sure you receive the grant documentation so you know when funds will arrive, when acquittals need to be completed and when grant applications need to be made.
• Update the bank account records so you are registered as a signatory.  Also ensure that any old signatories who are no longer authorised are removed from the bank account records. 

Hopefully, once the handover occurs you should be well positioned to take you first steps as a treasurer.  If the previous treasurer is leaving the board then check whether they are willing to assist you if needed and if they are not available then other board members can assist. 

Once you are in the role of treasurer you will find it enjoyable and fulfilling and that you are genuinely making a difference.  

            

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.

Passing The Buck

When your term of office as a Treasurer comes to an end, there is a simple but clear process for handing over the bookkeeping responsibilities to the new Treasurer.

Firstly, it is imperative that you make sure that all of your financial records are up to date, even if there are monies outstanding or invoices unpaid for some reason. As long as you have it all clearly recorded, the new office bearer can move easily into the role and the financial administration can continue to run smoothly.

Many committees don't remember to have their books audited but it makes sense to have a complete audit before you hand the books over to someone new. You will then have a clear record of the state of the finances at the point of handover. Many accountants will offer their auditing services free of charge if you are a small NFP organisation so make enquiries with your local accounting services.

When you contact the bank to organise for any new signatories to be added to the account, don’t forget to get the necessary paperwork for removing anyone who no longer holds a role as signatory within your organisation. Otherwise you can end up with a long list of people who can move money in and out of the NF’s bank account/s and it can become very difficult to maintain accurate banking records. That can obviously expose you to some risk.

Always hand over every historical financial record to the new Treasurer. Although legally you are only required to keep records for the past seven years, it can be a handy reference tool when it comes to expenses and investments, so it often pays for an NFP to keep them for much longer.

Finally, spend some time with the new treasurer and show them how the system works. Every system is a little different and it is important that they can follow an audit trail if they need to look up an older transaction.

A good handover means a smooth progression for the role so take the time you need together.

Why you should reconcile your accounts....seriously!

Kylie Short from Tilda Virtual specialises in providing administrative support, bookkeeping, online marketing, e-newsletter design, website design and technical support. She is passionate about good book keeping and has provided this great article about reconciling your books that applies equally to business as it does to the volunteer treasurer in a community organisation.

"It’s an issue I come a cross often, incorrect or no reconcilation of accounts and it still amazes me to see it. I can’t imagine not reconciling the accounts and don’t understand why people are so laid back about doing it. Reconciling your accounts are important for a number of reasons:

• It picks up any missing transactions that you may have misplaced a receipt for;
• It picks up any transactions that should not have gone through your bank account;
• It picks up over payments to suppliers;
• It picks up over payments by customers;
• It’s good business practice to do it.

When reconciling your accounts under no circumstances do you ‘make up’ transactions just to make it balance. If the accounts don’t reconcile after you’ve ticked the statement and ticked the transactions in your software, then you need to start again from the beginning to find the mistake. One trick I have is to reconcile the bank statement on a page by page basis. Try reconciling the first page, if it balances then mark it reconciled and move onto the next page. Going page by page is a great way to find the mistake and you’ll soon have it finished.

After you have reconciled your bank accounts mark the statement as reconciled and file it so you can find it later. If you are ever audited you’ll need your bank statements and it can get quite costly to replace them. I personally don’t print all the reconciliation reports but it’s a good idea to print them to PDF and file them on your computer so you can find them later.

If the idea of reconciling your accounts gives you the chills or makes you want to head for the hills, give me a call on 03 9013 8389. My team and I would love to help you!"

If you operate a home-based business, Kylie Short can help you become more successful through her virtual assistance business, Tilda Virtual Services.

Advanced Leadership for the Not for Profit Sector

Course Overview
Advanced Leadership for the Not for Profit Sector will run from 21 - 25 September 2009, and is a follow on course from “Leadership for the Not for Profit Sector”. This intensive course will further develop the leadership potential of participants in the sector.

This course will focus on the leader as an individual, including the knowledge, skills and competencies required in the current climate, and on the challenges and opportunities facing the sector. Participants will undergo a number of rich and rewarding personal experiences.

Key benefits

• Evaluate Leadership Potential in the context of leadership concepts and practice: Using the Unique UQ Business School Leadership Assessment Frameworks - Professor Victor Callan, international authority on Leadership assessment
  
• Case study of one of Australia's most successful Not for Profit Organisations and the personal journey and challenges faced by the CEO
  
• Case study of one of the world's most renowned leaders who conquered impossible odds to complete a successful mission
  
• Strategic leadership - deep analysis of experience from the business, government, and Not for Profit sectors featuring strategic leadership and planning tools
  
• Board-CEO-senior management dynamics featuring the role of Boards, Board selection and good governance
  
• Forming and maintaining effective partnerships. Practical session from an expert with experience in all sectors
  
• Media relations and leadership including practical media training for all participants
  Executive coaching session focusing on the personal motivation, values, attitudes, and approaches for successful leadership
  
• Meet the Leaders - an opportunity to hear from some of Australia's most successful leaders and learn of their approaches to leadership in a variety of contexts and settings

Who should attend
Past participants of the “Leadership for Not For Profit Sector” and current senior leaders in the Not for Profit sector and partners of these organisations.

Where and when
Central Plaza1, Level 19, 345 Queen Street, Brisbane, 21 - 25 September 2009.
Investment$2,950* Fee includes tuition, course materials, morning tea, lunch, afternoon tea each day and a formal dinner on Thursday evening. * Please note, this fee has been discounted, no further discounts apply. Also, GST does not apply to Corporate Education courses.

Further information
Register online or download the Registration Form from the UQBS Corporate Education website: www.business.uq.edu.au/corporate-education

For further information contact UQBS Corporate Education, telephone (07) 3346 7111 or email corped@business.uq.edu.au

Talking Finances

I recently came across a booklet of ‘101 top tips’ from successful Australian entrepreneurs offering reflections of what they’ve learned on their journey.

A recurring theme amongst the entrepreneurs was the co‐existence of three key principles – high‐quality delivery,great people, and strong financial management – three pillars that are a valuable blueprint for organisations of any size.

One of the first pieces of advice a banker will provide to any organisation is that the key to strong financial management is to never take your eyes off the cash flow.

To do this successfully you need an effective accounting system, plus simple to follow processes that make it easy for your staff or treasurer to record the everyday transactions of your organisation.

Here are a few ideas that will help to ensure your books stay in good shape:
􀂾 Everything has to add up: adopt a methodical and reliable accounting system. Make the most of its software and processes to record all transactions relating to monies coming in and going out.
􀂾 Time savers: if needed, investigate additional products such as tools to manage invoicing, superannuation and payroll. Your banker can help here.
􀂾 Sound administration: keep a separate file for each project, make sure your internet banking forms clearly identify their purpose, and keep a hard copy of receipts and budget spreadsheets as a back‐up.
􀂾 Never let your accounting processes slide: no matter if you’re a larger organisation with auditing requirements or a smaller group (auditing requirements vary from state to state), you’ll need to keep accurate and up‐to‐date records for taxation reasons.

Setting up a full and documented accounting system and easy to follow processes will also reduce the potential for fraud or simple mistakes like miscalculations which can be damaging to your organisation.

Also, your Treasurer may change overnight through accident, retirement or new election, and the newcomer will quickly need to extract everything they need from your organisation’s records.

Effective accounting is not only the foundation of a sustainable organisation, but ultimately a time saver that will free‐up your time so you can focus on providing your services where they’re needed most.

Article by Vanessa Nolan-Woods, Head of Community Markets at Westpac. Reproduced from the Our Community newsletter.