Bookkeeping means recording financial transactions in an orderly and systematic way.Bookkeeping is necessary so that information regarding the financial position of your organisation is readily available to the members, trustees and funders.
Cash books
Bookkeeping should require as few ‘cash books’ as possible. For most refugee community organisations only three books will be needed:
1. Cash received analysis book
Records and analyses all money (cash and cheques) paid into your bank account.
2. Cash paid analysis book
Records and analyses all payments paid by cheque.
3. Petty cash analysis book
Records the amounts withdrawn from your bank for petty cash use, and the payments made using that cash.
Paper records
Even if your organisation uses computer software for accounting, you must file one or more pieces of paper relating to every entry you make in the 'cash received' and 'cash paid' analysis books. It is crucial to have paper records because mistakes on computer software can be corrected and changes made without anyone knowing.
A common term that is used for paper records to explain each entry is ‘vouchers’. Give each piece of paper you file away a reference number and use this number as the reference in your cash books.
Cross reference related items, for example, income that relates to a specific invoice.
Keep your files in an orderly and logical way and make sure you keep other important documents such as minutes of management committee meetings, too.
All charities must keep records for a minimum of six years.
This page is a summary of the information contained in the full online toolkit.
