Page 6 - OSEP Management Module 4_Neat

At the end of each month, the figures recorded in the cash book should be
checked against your bank statements. It is also good practice at this time to
summarise what the club/federation owes (the creditors) and what money is owed
to the club/federation (the debtors).

To determine the cash balance, simply add up (total) the receipts and deduct
payments. Items that will alter the cash balance are:
• bank interest and charges
• unpresented cheques
• dishonoured (bounced) cheques
• direct credits
• debits from other accounts.

The cash book opening balance for each month becomes the closing balance
from the previous month. If you want to use just 1 cash book, you can record
receipts in the front of the cash book and payments in the back.

Activity 4.2

What type of cash recording system does your club/federation use?

Receipts
Details of receipts are recorded in the cash book columns. Columns can be
drawn up with the types of income expected. These are often the same as those
identified in the income side of the budget of the club/federation.

Receipts are entered in up to 3 places depending on the amount of detail your
club/federation decides is appropriate and the type of cash book you buy.
Receipts are entered in the amount column, under its income type and in the
banked column when banked. Often the banked figure will be the sum of all
money received since the banking was last carried out. Listing individual amounts
by banking date gives the opportunity for cross-checking.

It is important that all incoming cash and cheques be banked promptly. It is
unwise to use money without it first being banked, as it may become impossible
for the treasurer to keep track of what is happening with the money. It is also
important that all cash and cheques received be banked without any deductions
being made.

OSEP MANAGEMENT IN SPORTING ORGANISATIONS TRAINING PROGRAM — LEARNER’S GUIDE OSEP MANAGEMENT IN SPORTING ORGANISATIONS TRAINING PROGRAM — LEARNER’S GUIDE