Having a bank account for your organisation is essential. Funders will not release funding to a personal bank account. You should research the type of account you need and ensure that at least two trustees are willing to become cheque signatories.

Find a bank that understands the Voluntary and Community Sector, rather than simply applying for a business account.

Although SAVO is not able to recommend a particular bank, the Co-operative Bank and Barclays have provision for VCS banking. To open your account, banks will expect to see a copy of your constitution and will ask for personal identification from your nominated signatories.

Make sure you choose a bank that has local branches you can access easily, to pay in your deposits.

Here are a few tips on keeping your accounts in order:

Banking

Cheques and cash should be kept in a safe until they are banked. Access to the safe should be limited to 2 responsible individuals. Banking should be done on a frequent basis (no less than once a week). If high levels of cash are being banked, two individuals should go to the bank together and insurance for cash in transit should be considered.

Cheque Payments

A bank mandate must be drawn up stating who can sign cheques, to what value, and how many signatures are required.

Cheque books should be kept in a safe, with access limited to a limited and named number of individuals. Cheque signatories should not be able to sign cheques payable to themselves. Blank cheques should never be signed. Cheques should only be signed if supported by a valid invoice.

Petty Cash

Petty cash should be kept to a minimum. Cash should be kept in a locked box, with access limited to 1 or 2 people. The cash float should be kept at a fixed amount and regularly replenished from the bank account. Claims for replenishment should be fully supported by valid invoices or receipts. Claims for replenishment should be authorised by someone other than the cashier. Random spot checks (cash counts) of the petty cash balance should be undertaken by a nominated individual (independent of the cashier).

Bank Cards

Some accounts will give you a debit or credit card. Ensure that you have a robust policy for managing these to ensure that misuse is minimised.