Need to know how much is in the bank? Check your own records (assuming they’re up to date), not your online bank balance. Your books will contain all issued cheques, whether they’ve been cashed yet or not.
Posts Tagged ‘Banking and Investing’
Check your own records for most up to date bank balance.
Tuesday, May 8th, 2012
Keep cheques safe!
Wednesday, April 18th, 2012Keep blank cheques in a safe place – ideally in a locked drawer.
Don’t pre-sign cheques
Wednesday, March 7th, 2012Don’t pre-sign cheques. Although the convenience is tempting, this is an “end run” around the authorization process. Signing officers’ responsibility is to review and approve transactions.
Spot-check floats and petty cash for accuracy
Tuesday, February 28th, 2012Management should count floats and petty cash periodically, as spot-checks on accuracy.
Keep a Separate Float for Selling Merchandise
Tuesday, February 21st, 2012If you sell merchandise, keep a separate float for making change – don’t use your petty cash box for this purpose. Confusion is often created when the same “pot” of money is used for both spending and receiving money.
Manage Office Petty Cash as a Fixed Amount
Tuesday, February 7th, 2012Office petty cash is often managed as an “imprest fund” – i.e. a fixed amount. Cash plus receipts should always equal the value of the fund. For instance, if you opened your fund at $100, after your staff bought $30 of supplies, the box would contain $30 in receipts plus $70 in cash.
Good Petty Cash Fund Management
Wednesday, January 11th, 2012An office petty cash fund is a useful tool for covering small expenses. Limit access to the responsible staff member(s), and reconcile the fund regularly to catch errors.
Keep Your Cheques Secure
Wednesday, January 4th, 2012Keep cheques in a safe location. Signed blank cheques should be avoided – but if you have “emergency cheques” with a board member’s signature, make sure they’re under lock and key.
Try a Prepaid Gift Card in Lieu of Petty Cash
Wednesday, December 14th, 2011Use a regular supplier but don’t want to use petty cash around the office or don’t have a company credit card? Try using a prepaid gift card in a low amount and treating it in the books like petty cash.
Number of Authorizing Signatures on Cheques
Tuesday, December 6th, 2011Many charities require two authorizing signatures on cheques– but there is no limit no the number of signing officers you can appoint. Give yourself a couple of extras!
Deposit Cash Regularly
Thursday, December 1st, 2011Deposit cash regularly. The less you keep on your premises the better. Investigate after-hours deposit arrangements with your bank.
Preserving Capital vs. High Return
Tuesday, November 29th, 2011Your investment policies should provide guidance on risk tolerance. For many charities, preserving capital is more important than a high return.
Interest-bearing Investment Accounts
Wednesday, November 23rd, 2011Business chequing accounts generally pay little or no interest. Move excess cash to an interest-bearing investment account.