What does a Treasurer do?

CommunitySo maybe you are thinking of taking on the role of Treasurer at a not-for-profit organisation. But you want to know what you are getting yourself in for first? Read on for some of the more common tasks of a Treasurer.

It is the Treasurer’s job to keep the finances of an organisation healthy – so the organisation can achieve its mission. It’s an important role and, depending on the size of the organisation, it could involve an hour every month or several hours a week.

You don’t need to have an accounting background to be a good Treasurer. An eye for detail certainly helps, together with a basic knowledge of how the organisation works and knowledge of how money flows in and out of an organisation. If you do have an accounting background, you may like to read my previous post Not-for-profits – 6 ways your bookkeeping differs from other organisations.

You will need good communication skills as you will need to attend meetings and explain financial reports to committee members who may or may not share your enthusiasm or knowledge of financial matters.

Financial Reporting
This includes recording all financial transactions of the organisation and preparing financial statements at regular intervals. It also includes budget preparation and keeping an eye on whether groups are spending within their budgets.

Larger organisations may employ a staff member to record transactions, however the Treasurer will need to keep an overall eye on the finances.

Some organisations may use computer software to record transactions & prepare financial reports, however small organisations may use spreadsheets.

Written financial procedures need to be reviewed and updated regularly. Anyone else should be able to walk into the role and pick up where you left off. It is also provides a degree of protection for the organisation and its people.

Correct authorisation of transactions is a key issue, as well as having strong internal control procedures in place to prevent theft or fraud. You may need to assist with audits.

You may be asked to prepare funding proposals for grants, with the assistance of other board members.

Risk minimisation
Part of keeping an eye on the finances of the organisation is alerting board members to potential risks such as low funds or future, large expenses.

Taxes and Industry Specific Legislation
The Treasurer should educate themselves on the main legislation that applies to the particular organisation. For example in Australia this could include GST, PAYG withholding and ACNC requirements.

So that is the basics of what you may be asked to do as a Treasurer. Depending on your work background it may be quite a large learning curve for you, however don’t underestimate the satisfaction you can get from devoting your time to a worthwhile cause. It is also a great opportunity to get together with people who share your interests and passions. Don’t forget to add it to your resume and make use of the networking opportunities that being on a committee can bring.

Have you been a Treasurer before? Was it a positive experience for you – please add your comments below.

Not for Profits – 6 ways your bookkeeping differs from other organisations


There are many types of organisations out there (one of the reasons I enjoy bookkeeping), and not-for-profits are one type of organisation in particular that require a special approach to their bookkeeping.

Terminology – Terms such as “profit” and “loss” are usually replaced with “surplus” or “deficit”.

Complex budgets – Broken down into many different departments or auxiliaries. Essential for decision-making and helps keep organisational spending on track.

Asset purchase – Often recorded as an expense, with adjustments made at the end of the financial year to transfer the amounts to the correct asset accounts.

Special tax concessions – Available for some registered charities in Australia. For example, income tax exemption.

Cash handling – A lot of trust put in volunteers, who may be handling large amounts of cash. Do you have good internal control procedures in place to reduce the risk of theft and lost money? For some tips on internal controls, refer to my previous tips in Reducing the risk of fraud and error in small business.

Non-Profit Sub-Entities – Treated separately to the rest of the organisation in relation to GST.

Who said bookkeeping is boring? Always something new to learn, particularly if you are a newly appointed Treasurer or Bookkeeper.

Have I missed something important that you have found to be different with not-for-profits? Please join the conversation and add your comments below.

Reducing the risk of fraud and error in small business

Accounting text books

You may be a sole trader thinking of taking on your first employee, or a small business that already has several employees.  Employing staff means you are handing over part of your control, and this delegation will inevitably increase the risk of fraud and error occurring within the business.
This is where internal controls come into play. Here are some of the more relevant ones you may want to consider implementing.

Human resources

  • Good hiring procedures –in particular, picking up the phone and contacting those referees every time.
  • Providing job descriptions and procedure manuals
  • Solid training
  • Keep morale high and give praise and recognition where it’s due  – disgruntled employees find it easier to justify ripping off the business

Computer system

  • Use passwords
  • Backing up data – important. Veechi Curtis, author & accounting software guru, recommends backing up daily if you do daily data entry and weekly if you do weekly data entry.  Don’t forget to take your saved data off-site at regular intervals too.  Regularly check that your back-ups are working correctly and at the end of the financial year make an extra back-up to keep off the premises.
  • Void or reverse transactions instead of deleting them – leaving a more complete transaction trail
  • Authorisation required for non-standard adjustments such as writing off bad debts and writing off damaged or lost stock
  • Check audit reports to monitor the changes your employees are making to transactions

Accounting procedures

  • Credit approval procedures for new customers – including the following up of trade referees
  • Reconcile supplier statements with physical bills on-hand and your computer accounting system before paying
  • Documentation to support all employee credit card spending and set reasonable credit limits
  • Use pre-numbered documents and make sure all documents can be accounted for


  • Good security over physical assets – for example, security systems in warehouses and restricted access to cheque books and cash
  • Segregation of duties – for example, someone with access to cash payments from customers shouldn’t also be responsible for entering the transaction into your accounting system

You will need to weigh up how much each internal control will cost to implement against how much you stand you lose by not having it.  Make sure you are seen to be using these controls yourself as your attitude to internal control will be passed on to your employees.
By implementing a good internal control system not only are you reducing the risk of fraud and error, but your financial records will be a fairer representation of your actual position and operational efficiency in general should be improved.