Money

How to Manage Your Community Group's Finances

A plain-English guide for Australian volunteer treasurers: how to manage community group finances, keep clean records, and stay on top of reporting.

Managing a community group's finances means keeping clear records, spending within your budget, and reporting honestly to members at least once a year. You do not need an accounting background to do this well.

The role of volunteer treasurer can feel overwhelming at first. It does not need to be. Most community groups run simple finances — membership fees in, expenses out, a report at the AGM. The goal is to keep things clean enough that anyone could pick up where you left off.

> General information notice: This guide is general information only. It is not financial or legal advice. For questions specific to your group's tax obligations or legal structure, speak with an accountant or your state's consumer affairs regulator.

Set up a proper bank account

Your group's money should never sit in a personal account. Open a dedicated bank account in the group's legal name. Most banks offer fee-free or low-cost accounts for incorporated associations — ask for the not-for-profit rate.

Set up two signatories. This means two committee members must authorise any payment over a threshold your rules set (often $500). It is a simple safeguard that protects your group and protects you.

Build a simple budget at the start of each year

A budget is just a list of expected income and expected expenses. Do it at the start of the financial year (July 1 for most Australian groups) or before your AGM.

Start with last year's numbers. Then adjust for anything you know is changing. Our free budget template gives you a starting point.

A simple budget might look like this:

Income - Membership fees: $3,200 - Fundraising dinner:

,000 - Grant (applied for):
,500

Expenses - Venue hire:

,800 - Insurance: $900 - Equipment maintenance: $600 - Postage and printing:
00

Total surplus: $3,200

You do not need more detail than this unless your group is large or has complex activities.

Track every transaction

Every dollar in and every dollar out needs a record. The minimum is:

Reconcile your records against your bank statement monthly. This means checking that your spreadsheet matches your actual bank balance. If they do not match, find out why before the next month arrives.

For a straightforward group, a simple spreadsheet is fine. You can also use free or low-cost accounting tools — several offer not-for-profit pricing. See our finance docs for how Swoop connects to your payment records.

Handle income carefully

When money comes in, record it immediately: the date, the amount, who paid, and what it was for. If you collect cash at an event, count it with a second person present and issue a receipt.

For membership fees, the cleanest approach is online payments — then the record creates itself. See our guide on how to collect membership fees online.

Manage expenses with receipts and approvals

For every expense, keep the receipt. If you are reimbursing a committee member for something they bought, have them fill in a simple claim form (date, amount, what it was for) and attach the receipt.

For anything significant — a new piece of equipment, a large event deposit — get committee approval before the money is spent. A quick email vote with all committee members copied is fine for minor items.

Report to your members

At minimum, present a financial report at your AGM. This does not need to be elaborate. A one-page summary covering:

If your group's income is over the threshold in your state's associations legislation (often around

50,000–$500,000), you may need an independent audit. Check your state's requirements.

Hand over cleanly

One of the most important things a treasurer can do is make sure the next treasurer can pick up easily. Keep everything in a shared folder the committee can access — not just on your personal computer. Before you finish your term, do a proper handover: bank account access, accounting records, insurance policies, and a brief notes document.

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If you want to talk through how Swoop handles the finance side for community groups, book a yarn — we are happy to walk you through it.

Common questions

Do community groups need to lodge tax returns in Australia?
Most incorporated associations are exempt from income tax, but you still need to apply for that exemption with the ATO. Check the ATO website or ask an accountant if you are unsure.
What bank account should a community group use?
Open a dedicated account in the group's name — not a personal account. Most banks offer fee-free or low-fee accounts for incorporated associations.
How many signatories does a community group bank account need?
Two signatories on any payment over a threshold (often $500) is standard practice and what most associations require in their rules. It prevents any single person from misusing funds.
What records does a community group need to keep?
Income and expense records, bank statements, receipts for all purchases, and your treasurer's reports. Keep them for at least seven years — that is the ATO's general requirement.
What's the difference between a budget and a cash flow forecast?
A budget shows planned income and expenses for the year. A cash flow forecast shows when money actually arrives and leaves — useful for groups with seasonal income like annual memberships.

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