Learning by doing is the best method, so whenever possible have the incoming treasurer practice entering transactions. These can be actual club transactions or fictitious ones.
It’s always a good idea to back up the data before the practice sessions. Even with 20 years of experience as a club treasurer, I nearly always back up my data before entering new transactions. (Unexpected things happen to computers.) If using fictitious transactions, keep track of them so that you can delete them afterward.
Another possible training procedure to use during the summer is the preparation for an audit of the club accounting records. Go over the documents the club uses to audit the accounting records. This would include broker statements, forms 1099 received and bank statements if the club also has a bank account.
Next go over the reports generated by the accounting software used in an audit. Useful reports for the audit include valuation statements for the period being audited, member status reports, member deposit reports, cash journals and withdrawal reports for members withdrawn during the period. If you haven’t been conducting regular audits, now is a good time to begin and train the next treasurer to continue regular audits.
ICLUBcentral has developed a check list for performing an audit. The link is provided at the end of this article. At this webpage there’s also a list of educational items. When I checked while writing this article, the audit check list was No. 8 in the lineup.
If the treasurer-in-training hasn’t been through a tax- preparation season, this is also a good time to go over the procedures needed to close the club books for the year and prepare club tax returns. This should include the new requirements for entering broker cost-basis information.
Many clubs disband owing to the loss of a treasurer and the unwillingness of another member to fill the position. The job isn’t as difficult as is commonly thought and the accounting and tax software make it much easier and less time-consuming.
With a little practice and encouragement, every member of a club should be able to master this position. Websites of InterestStockCentral Learning Library