Banks

All settings should have a separate bank account, which should be in the group’s own legal name.
It is important to choose your bank carefully so that the account you have is most suitable to the type of organisation you are and how you will be using the account.

Some banks offer “free” banking, however what this means can vary and in some cases result in reduced interest rates. It may be better to pay a low charge and get better interest on the credit balance in the account.

It is worth assessing what types of transaction you process most (e.g. volume of small cheque receipts as opposed to large direct credits such as grants) as this can make a large impact on which bank is the best for you.

If you are a charitable or not for profit group it is important that you tell your bank this. Some high street banks and building societies offer special accounts for small voluntary and community groups and the charges may be different.

Bank statements

It is recommended that the treasurer receive bank statements on a monthly basis (with copies sent to the Chair). Bank statements should be reconciled monthly, i.e. entries on bank statement checked against cheque stubs, paying in book, withdrawal slips etc.

The bank statements must be kept and suitably filed. You may need these to access grant funding or loans where proof of income is available.

Interest

If you have charity status you will be entitled to receive gross interest, meaning that no tax is payable on that interest. If you are in any doubt check with you bank manager.

Signatories

It is important to have enough signatories to allow for people to be ill or on leave. It will be recommended that at least 2 eople sign each cheque and to make any changes to the account or its terms.