As invoices are paid, the check number and date should be written on the invoice and it should be filed in check number order. If you write more than 20 to 30 checks per month, you may want to consider filing the invoices alphabetically by payee. As already discussed, all bank accounts must be reconciled each month. This may not be practical, in which case the treasurer must be the one to reconcile the account each month. This can be very embarrassing to the board and be expensive for, or even ruin, an organization.
Some groups purchase an insurance policy to protect themselves against misuse of funds.
It is usually quite inexpensive and is something your board of directors should consider. Discuss this with an insurance agent. A Guide for the Volunteer Treasurer is available in the online bookstore. Permission is granted for organizations to download and reprint this excerpt.