Money
Simple Bookkeeping for Community Groups
A plain-English guide to bookkeeping for community groups — what records to keep, how to track income and expenses, and how to stay on top of it all.
Good bookkeeping means you always know how much money your group has, where it came from, and where it went. You do not need an accountant or expensive software to get the basics right.
This is general information, not legal advice. Your obligations may vary depending on your group's legal structure, size, and state of incorporation.
Why bookkeeping matters
Without clear records, small problems grow into big ones. A missing receipt here, an unreconciled bank statement there — and suddenly no one is sure whether the group can afford next year's insurance. Proper books protect your members' trust and, for incorporated associations, help you meet your legal reporting obligations.
See our guide to managing group finances for a broader overview of financial health, and treasurer duties for the full picture of what the treasurer role involves.
The four things every group needs
1. A bank account in the group's name
Every dollar should flow through one account — not a personal account, not an account shared with another organisation. This is the single biggest control against money going missing.
Most banks offer fee-free accounts for not-for-profit community groups. You will usually need two signatories for payments above a set threshold. Check your rules or constitution for what your group requires.
2. A cash book (or its equivalent)
A cash book records every transaction: the date, the amount, who paid or was paid, and what it was for. You can keep this as a paper register, a spreadsheet, or a software tool — the format matters less than the habit.
Record transactions promptly. The longer you leave it, the harder it is to remember what each entry was for.
3. Receipts and invoices
Keep a receipt or invoice for every payment you make. If someone pays for something out of pocket and is reimbursed, they should hand over the receipt at the same time. Store these somewhere safe — digitally scanned is fine, as long as they are readable and backed up.
For income, issue a receipt or record of every deposit. If you run a fundraiser or take cash at an event, a tally sheet that adds up to the bank deposit is your evidence.
4. Bank reconciliation
At least once a month, compare your cash book to your bank statement. Every item on the bank statement should have a matching entry in your books, and vice versa. Anything that does not match needs to be investigated before you move on.
Reconciliation is the single best way to catch errors — or anything more serious — early.
How to structure your records
Keep your records in a simple structure that a future treasurer can pick up without your help:
- Income — grants, membership fees, fundraising, event takings, donations
- Expenses — insurance, venue hire, equipment, printing, bank fees, reimbursements
- Running bank balance — updated after each transaction
The treasurer budget template gives you a starting point you can adapt for your group's size and income mix.
Year-end and reporting
At the end of your financial year, your books should show total income, total expenses, and the opening and closing bank balance. This becomes the basis for your financial report at the AGM and, where required, any regulatory reporting.
Incorporated associations in Victoria must lodge an annual statement with Consumer Affairs Victoria (CAV). Groups registered with the ACNC have additional reporting requirements depending on their size. Your group's rules will say who prepares the report and whether it needs to be audited or reviewed.
Common mistakes to avoid
Leaving it too long. A transaction recorded the same day takes thirty seconds. A transaction reconstructed three months later takes thirty minutes — if you can do it at all.
Mixing income streams. If you run both membership fees and a canteen, track them separately from the start. Combining them makes it impossible to see which activities are profitable.
Sole signatory on payments. Having one person able to authorise and make payments without oversight is a risk to your group and to that person. Two-signature requirements exist for good reason.
Carrying large cash balances. Deposit cash promptly. Unbanked cash is harder to track and easier to lose.
Where to get help
The finance section of our docs walks through how Swoop supports your group's financial admin. The ATO also publishes guidance for not-for-profit organisations on record-keeping requirements.
If your group has grown or you are unsure whether your records meet your reporting obligations, a bookkeeper or accountant experienced in the not-for-profit sector can review your setup without taking it over.
If you want to see how Swoop can simplify your group's financial admin, book a yarn and we can walk through what suits your setup.
Common questions
- What bookkeeping records does a community group need to keep?
- At minimum: a record of every payment in and out (date, amount, purpose), bank statements, receipts for all expenses, and copies of invoices. Most groups should keep these for at least seven years.
- Does a small community group need accounting software?
- Not necessarily. A well-structured spreadsheet handles most small groups. If your income grows or you have multiple cost centres, dedicated bookkeeping software starts to save time — but it is not compulsory.
- How do we separate personal and group money?
- Open a bank account in the group's name and use only that account for group transactions. Never mix group funds with a personal account, even temporarily.
- What is a cash book and do we need one?
- A cash book is a running record of all money in and money out, in date order. Every group needs one — whether it is a paper notebook, a spreadsheet, or a software register.
- How often should the books be reviewed?
- Reconcile your bank account at least monthly — compare your cash book to the bank statement and make sure they match. The treasurer should report a summary to the committee at each meeting.