If you are working as a treasurer of a non-profit organization, then you have to be aware of your duties and the role you would play for the success of the organization.
The role of a non-profit treasurer is a challenging job and the duties of a non-profit treasurer play a vital role in the success of the organization. A skilled non-profit treasurer can create a good financial accounting structure for the organization.
Today in this article we will guide you to know about the qualities required to become a good non-profit treasurer and will give you a clear idea of how to accomplish the task and responsibilities of a good non-profit organization. Read the article till the end. This will make sure that you perform your task and help your organization to achieve success in a proper way.
Qualities Required to Becoming A Good Non-profit Treasurer
Now let us have a look at the qualities which are required to become a good non-profit treasurer
- Critical Thinking – In order to offer suggestions for forthcoming financial decisions, you should be able to evaluate the policies, practices, and financial situation of your firm.
- Organizing Skills – All successful treasurers have outstanding organizational skills. They are meticulous in their work and maintain perfect records.
- Strategic Planning – In order to expedite the development and future success of a business, treasurers must be able to synthesize cause-and-effect scenarios with reference to probable financial decisions the organization will make.
- Innovation – In a growing and evolving business, fresh thinking and creativity are essential when it comes to raising money and reducing costs.
- A good non-profit treasurer should be an expert in basic accounting skills, and principles. He/she should also have the urge to learn more and more in order to master accounting skills.
- A good non-profit treasurer should have complete knowledge of the bylaws of the organization. He/she has to maintain the financial standards of the organization according to the laws and rules of the organization.
Initial Duties of A Non-profit Organization’s Treasurer
When you start working as a treasurer in a non-profit organization, initially you have to perform some basic tasks in order to do your job effectively in the future. Let us have a look at some of the initial tasks which should be performed by a new treasurer in a non-profit organization
- The first and foremost task that you should do is that you have to ask the previous treasurer of the organization to send the files and ask him/her about the basic duties he used to perform for the organization.
- Then you have to ask him/her to give you all the information regarding the budget of the organization and the information on purchases and events of the organization.
- Then you have to set reminders in an electronic calendar about the due dates of bills and the dates of future payments to work smoothly and effectively.
- You should also ask the previous treasurer of the organization if there are any undocumented transactions or income present or not.
- Then you have to collect all the bank records and details of the organization in order to update the signature cards and get access to the online account.
- Then you also have to transfer credit card authorization and should take possession of the checkbooks and credit cards of the organization.
Key finance responsibilities
- Recognizing fiduciary duty and its relevance to non-profit organizations.
- Identifying the value of a robust financial system, especially cash flow management, for charities.
- Reviewing the significance of being aware of the tax implications.
- Knowing how to create and keep accurate records for a nonprofit accounting system.
- utilizing financial instruments like forecasting, benchmarking, and budgeting.
Mistakes that should be avoided by A Treasurer
Now let us have a look at some of the mistakes that you should not do as a treasurer to become a successful treasurer of a non-profit organization
- You should never neglect the separation of duties and access control. You have to follow the procedures and you must make changes if you see any lax in the policies of the organization. You should never be afraid to enforce the protocol.
- Never be lazy in preparing the financial report of the organization. You must be punctual while preparing the financial reports of the organization because the owners of the organization completely depend on the financial reports to know the financial standing of the organization and make proper database decisions for the success of the organization.
- You should never give tax or legal advice to donors.
- Never misuse the power i.e you should never make any decision without approving it from the owners and you should never pay for any undocumented decisions.
Basic Duties of Non-profit Organization’s Treasurer
Let us have a look at the basic duties and responsibilities of a non-profit organization’s treasurer
- As a treasurer, you have to know the skills of the staff and have to manage the daily duties of the finances of the organization. You have to pay and record the bills, keep the debt records, manage the cash flow crisis to survive the business, choose a bank and also have to reconcile the statements. You should have complete knowledge of the bylaws of the company.
- As a treasurer, you have to keep the finances of the organization safe. The process of this protection should already be built into the bylaws of the organization. You have to follow the procedures and policies in order to manage the finances of the organization safely.
- As a treasurer, you have to create and deliver the financial reports timely to the owners of the organization. You have to collect data from the chart of accounts and then create the profit and loss statement, balance sheet, cash flow statement, and budget accurately.
- As a treasure, you should completely know the number of expenses the organization can afford. Based on how the company can afford expenses, you have to create a budget for each project of the organization by consulting the board members and directors of the company.
- As a treasurer, you also have to meet with the directors of the organization to give them advice about future financial plans and opportunities. You should also consult them regarding investments, cash flow crises, tax implication plans, etc.
We hope that now you completely know about the qualities required to become a good non-profit treasurer and how to accomplish the task and responsibilities of a good non-profit organization. You should always keep in mind the mistakes that you should avoid as a treasurer and also the initial duties that you should perform when you newly join a company as a treasurer.