Financial Record Keeping Checklist for Proper Management of Accounts

The success of any business depends on the financial records that are kept. Keeping of Financial Records are not only necessary for the smooth running of the business but also helpful in tax procedures, management of account and business. These records are also helpful in understanding the income, expenditure, money coming-in and money going-out and watch over monthly budgets and keep day to day check on all financial and other activities. Though different business and companies have different accounting style and process as per their volume of business and size, but all follow the same principal and implement similar method and system.

The basic Content of Financial Record Keeping Checklist can be summed up as follows:
1. Identify financial transactions.

2. Put record keeping systems in place (Books and Journals for Bookkeeping System)

• Sales Invoices
• Purchases Invoices
• Cash Transactions
• Credit Notes for Returns
• General: used to record all other transactions

3. Identify paid and unpaid items.

4. Decide when to write up entries.

• Update Cash Book daily
• System to record all entries (daily, weekly and monthly)
• Cash supporting documentation

5. Set up internal reference system.
6. Put in place procedures for recording miscellaneous transactions.
7. Make sure record keeping systems are being followed.

• Operate systems, for checking and monitoring the recording of all

Financial transactions such as receipts, issue of Invoices etc.

8. Carry out frequent reconciliations.

By following proper and competent Financial Record keeping systems and methods, you can really monitor the functioning of your business.
Below given Financial Record Keeping Checklist will help you preparing your own Financial Checklist:

Financial Record Keeping Checklist

Record name			Currency		Page	_ of _
Organization, office etc				Responsible person
Date	Details	Ref. No.	Code	Money in	Money out	Balance
	Opening balance

treasurer’s roles and responsibilities

The treasurer is the person on the board or committee who takes overall responsibility for the financial management of an organisation on behalf of its governing body. The amount of work involved for the treasurer will depend on the size and type of organisation and on whether there is a financial administrator on staff who can carry out some of the tasks.

To help with his or her duties, the treasurer should have:

• a copy of the group’s constitution (or rules)
• copies of previous annual financial accounts
• had a discussion with their predecessor to obtain any relevant information or advice
• had a discussion with the group’s auditor (if there is one) on any issues that may need to be addressed in the operation of the group arising from the last audit and find out what’s likely to be needed for the next audit (if the accounts are audited).

Checklist of treasurer’s overall duties

A treasurer takes responsibility for the financial management of the organisation. The treasurer carries out the following overall duties:

• sets up and oversees bank accounts on behalf of the organisation (most organisations have a cheque account, a savings account, and term deposits)
• ensures money received is receipted and banked promptly
• invoices anyone who has purchased goods or services (rentals, use of equipment, membership feesetc) from the organisation
• signs cheques on behalf of the organisation (at least one other person should co-sign the cheques)
• make payments as required (see the next page for more details)
• maintains accurate records of income and expenditure
• files GST and tax returns
• keeps an accurate wages book and makes PAYE payments as required (where there are paid employees)
• prepares annual budgets for the forthcoming year
• manages a cash flow record and also the organisation’s investments e.g. term deposits and property management (in association with the committee)
• maintains an appropriate accountability system for grants received
• prepares and presents monthly financial reports for management meetings
• prepares accounts for auditing and provides information for the auditor as required
• prepares and presents the Annual Financial Report to the Annual General Meeting/Hui-ā-Tau.

Checklist for making payments

In addition to the overall duties (just mentioned), when making payments, the treasurer should make sure that:

• all payments are made by cheque (or direct debit) and on time – the exception is for small items paid out of petty cash
• there is a proper GST invoice before making payment – it’s easier to get the supplier to issue a correct invoice if they haven’t yet received the payment (see the sample of a proper GST invoice)
• all invoices are checked for accuracy before making payment – also check that the goods or services have been received (tick off items listed on the packing slip/invoice) and that they are satisfactory
• volunteers’ out-of-pocket expenses are always paid promptly
• there are two cheque signatories when making payments – this should be expressly included in the organisation’s constitution
• file invoices in cheque then date order.

Tip

In small community organisations, the treasurer should prepare a list of the cheques written out during the month and present them to the regular committee/board meeting to be approved. If possible, the treasurer should write out the cheques and get them approved at the meeting. This is not appropriate for larger organisations that have established systems for controlling cheque payments.

financial records

Many of the major problems for organisations arise from poor record keeping of financial transactions. The treasurer must be able to provide documentary evidence of every transaction made in order to prove the validity of his or her records and to satisfy the auditor (if an audit is required).

The treasurer (and/or financial administrator) is responsible for maintaining the following records (which are dealt with in more detail below):

• subs or membership register (in the case of clubs)
• receipt book for monies received
• a file for keeping your income invoices and paid accounts
• petty cash book
• an accounting system (preferably a com