By Frank Newman on 12th November 2016
Unfortunately most of the accountants clubs engage don’t know what systems to be put in place to close the door on the crooks waiting for an opportunity to help themselves.
We can’t get away from technology, and there are now some great programs that make club accounting easier and more secure. The downside is your staff need to know how to use them! In many cases they don’t, and the result is a birds nest that may be virtually impossible to untangle and thieves love accounting muddles. The most common problems are:
– Staff inadequately trained, not knowing how to code transactions correctly or do journals.
– Using an accountant that does not know how thieves manipulate the accounting system.
– Coding heaps of transactions to a suspense account and not resolving those queries before the management reports are printed.
Life would be much easier if clubs got their accounting systems right and became more professional about the way they handle money, before a thief forces them to! There are no short-cuts in this area.
Accounting systems should have three things in mind.
1. Providing the information you need, when you need it (not 12 months later when you don’t need it, or once the missing funds and the person who did it are long gone!).
2. Putting systems and disciplines in place that make it hard for thieves to pinch club money and property, and easy to detect if they do. This is absolutely critical.
3. Making sure all of the requirements of the Incorporated Societies Act are complied with.
Of these, most accountants are only doing the last (and the least important) adequately.