Financial recording requirements for your incorporated association include keeping:
- a cash book or statement of amounts received and paid
- a receipt book of receipt forms
- all association bank statements
- a register of assets
- a petty cash book.
Larger incorporated associations may also be required to use a journal and/or ledger. This depends on the type of financial operations your incorporated association requires. If you are unsure, contact your auditor or verifier for more information.
All financial records for your incorporated association must be kept for at least seven years after the final entry.
Cash book and receipt book
Your incorporated association´s cash book is used to record all cash or cheque payments (expenditure) and receipts. It is generally kept in chronological order and split into two sections, one for payments and one for receipts. Your receipts should reconcile with your bank statements.
All monies received should be recorded and a receipt issued. Your incorporated association is required to keep a duplicate of all receipts, and you´ll need these at audit time.
You also need to keep a register of these receipt books. Generally, incorporated associations use more than one receipt book each financial year, and this will help you and your auditor or verifier keep track of them.
The cash book should be balanced at regular intervals (e.g. monthly), and a reconciliation made between the cash book and bank balance.
Bank statements and petty cash book
Your incorporated association must hold an account with a financial institution in Queensland. Unless your incorporated association intends to make all payments over $100 via electronic funds transfer, the account will need to be a cheque account, or at least an account from which cheques can be drawn.
The management committee must be recorded in meeting minutes as either approving or ratifying all payments. Therefore, any invoices that need to be paid must be raised by the Treasurer at a management committee or general meeting for approval.
Any payment over $100 must be paid by cheque or electronic transfer. Any amount less than this can be paid from your incorporated association´s petty cash. All payments from petty cash must be recorded in the petty cash book.
Journals and ledgers
Keeping a journal and ledger is generally only necessary for larger incorporated associations that must keep track of numerous accounts. All transactions are initially recorded in the journal in chronological order, then into the ledger. The ledger is a place to keep track of a number of accounts that may be used for different purposes.
The asset register is a place for your incorporated association to record the details of all assets acquired and owned since incorporation. You need to include details such as the date of acquisition, cost, depreciation, location (if applicable) and disposal of assets. This register will assist your management committee to keep track of your association´s assets, and will also be needed at audit time.
Last reviewed 01/07/2011