You don’t need to be a financial expert or use complex accounting software to keep track of the finances in your small association. Small associations, such as motorcycle clubs or chess clubs with a limited budget and a modest number of members, can use a simple and practical approach to accounting that still meets the most basic requirements. Here are 8 tips for simplifying your accounting:
8 tips for simple accounting
1. Use a simple ledger:
A simple ledger or notebook may be enough to record income and expenses. You can create columns for the date, description, and amount of each transaction. You can also use Excel or another digital spreadsheet.
2. Keep it manual:
If your association is used to writing things down by hand and has few transactions, continue doing so. A classic calculator can help with the calculations. Just scan it into the computer when it needs to be entered into the Unioo report.
3. Record regularly:
Make it a habit to record each income and expense as soon as it happens. This ensures accurate and up-to-date information.
4. Simplified categorization:
You don’t need to divide income and expenses into a long list of categories. Use simple categories like "income" and "expenses" to keep it manageable.
5. Bank statements:
Receive bank statements from your account and compare them with your manual records. This will help you verify the accuracy of your records.
6. Annual review:
Once a year, review your records and summarize income and expenses. This gives you an annual overview of the association’s finances.
7. No VAT obligation:
If your small association is not VAT registered, you can skip VAT-related complications in your accounting.
8. Audit and review:
Although you don’t need a formal audit, it can still be helpful to have someone else review the accounts to ensure accuracy.
Purpose of accounting
Remember, the purpose of accounting is to have control over the association’s finances and ensure that funds are used responsibly. By using a simple and practical approach, small associations can meet these goals without feeling overwhelmed by accounting tasks.