Managing Bank Accounts

There are a few initial pointers when it comes to managing bank accounts:

• In accordance with SO 012(1), ensure that Methodist money is held in properly established and official bank accounts; not in personal accounts.
• The Church Council (or managing trustees) should annually confirm the names on the bank mandate.
• Copies of the bank statements should be sent to the treasurer and a senior steward for checking – this can be done online by granting read-only access to the account.
  
  NOTE: the senior steward MUST NOT have a close or personal relationship with the treasurer. If the senior steward has a close relationship to the treasurer, then the bank statements need to be sent to someone else. This helps to prevent fraud by having two independent people review the bank statements.
  
• Any investments in deposits or other financial products, including any transfers of investments, must be approved by the managing trustees.

More information about banking for charities can be found on The Charity Commission website and under Banking for Charities on the NCVO’s website.

Online banking

Online banking is common due to the number of local bank branches closing. HSBC have created a Modern Banking Guide with useful information for charities and faith groups, and the Just Money Movement offers information and suggestions for more ethical banking options. Some churches have recommended The Unity Trust as an ethical and cost-effective option for online banking.

Practical Tips

1) Keep it simple and neatly file all the paperwork. Bookkeeping can be straight forward. An accountancy qualification is not necessary to keep a simple set of accounts.

2) Use similar headings to those of the Standard Form of Accounts for ease of working.

3) Record, document and reference every transaction, including cash payments and income – giving formal receipts when needed. It is recommended to use a system of reference numbers to identify transactions.

4) Be methodical and write up the books regularly – don't leave it to the year end.

• Regular balancing of the accounts is essential. Just how regular will depend on how many transactions the treasurer handles, but monthly or upon receipt of the bank statement would be an ideal time. Please note that if you are using a finance software programme, the details still need to be complete and accurate and reconciled to the bank account.
• It is recommended to check monies that are held in trusts by Trustees for Methodist Church Purposes (TMCP) regularly rather than waiting until year end, in order to avoid delays due to a surge in requests.

5) Remember:

• Starting balances + money received - money paid out = closing balances.
• If you are not sure about anything ask a treasurer colleague first then, if necessary, seek wider assistance.
• The accounting year for all Methodist Church accounts runs from 1 September to 31 August.

The Association of Church Treasurers (ACAT) offers a wealth of information and guidance on accounting and other financial issues. The Methodist Church has a block membership agreement in place so that all treasurers can access ACAT’s resources. Click here to find out more.