A bank statement summary, also known as a bank statement, is a detailed record of all financial transactions made on an association's bank account during a specific time period. This summary shows all deposits, withdrawals, and balance changes in the bank account in chronological order. The bank statement summary is an important part of the annual financial report as it provides documentation of the association's financial activities.
8 steps
Here are the steps to create a bank statement summary for an association:
Obtain bank statements: Contact the bank where the association's account is held and request bank statements for the relevant period, usually a fiscal year. Bank statements can typically be obtained in either physical or digital form.
Organize the bank statements: Review the bank statements and organize them in chronological order so that the transactions are easy to follow. This can be done manually or with accounting software, if the association uses such tools.
Record the transactions: Make a list of all deposits and withdrawals from the bank statements. This includes membership fees, donations, event expenses, fees, interest, and other relevant transactions.
Documentation and descriptions: Ensure that you have documentation for each transaction, such as receipts, invoices, or contracts. Clearly describe each transaction so it is easy to understand the purpose of the transaction.
Summary: Calculate the total deposits and withdrawals for the period and update the bank account balance at the end of the period.
Bank statement summary: Create a bank statement summary that includes all transactions and balance changes in chronological order. This can be done in a spreadsheet or with accounting software.
Review and control: Carefully review the bank statement summary for any errors or omissions. It is a good practice to have an independent auditor review the financial report to ensure accuracy.
Include the bank statement summary in the annual report: Once the bank statement summary is complete and audited, it should be included as part of the association's annual financial report, along with the income statement and balance sheet.
Why is the bank statement summary important?
The bank statement summary is crucial for providing transparency and documentation of the association’s financial activities. It is important to maintain accurate and detailed records to ensure that the association meets accounting requirements and can report accurately on its financial situation.