What records do I need?

What is a cash book?

Income June 2000

  A similar record can be kept for payments.

Most people keep a separate record for cheque transactions and one for loose cash (petty cash). This makes it easier to check the bank statement.

Yes. It is very important to keep any remittance advices/letters that are sent with your incoming cheques. You should also keep a copy of any receipt or invoice that you issue to anyone, eg to acknowledge a donation.

When you purchase something you should be given a receipt or invoice.

If you are not using a ledger system it will probably be easiest to keep these in date or cheque number order. You may wish to give each one your own reference number and write this number beside the payment in the cash book. Keep your system tidy and simple as others may need to use it if you are away.

Petty cash vouchers purchased from a stationery shop can be attached to small till receipts. These have a space to add details and also for your treasurer/ manager to approve the payment. Number these in the space provided and reference it to your petty cash book.

These should be kept safely and checked to your cash book records as they arrive. You can add to your cash book if you find something on the statement that is not in your records, eg. bank interest or a direct debit that you have missed.

If there are any unexpected items on the statement you can then query them.

You may have written out some cheques that have not yet cleared the bank. Remember to follow these through the next month. If cheques do not clear after six months you can cancel them in your records.