Once a community group starts collecting fees and paying bills, it usually needs its own bank account. A separate account keeps club money apart from personal money, makes it easier to produce records, and shows members and funders that the group is organised. Choosing an account, however, involves more than comparing monthly charges. Committees should think about who can approve payments, how the account will be checked, and what happens if a key volunteer leaves. This article sets out the questions to ask before opening a club account with two signatories.
Who should be able to sign
A common approach is to require two named signatories for payments above a set limit. Two people reviewing a payment can prevent honest mistakes, and it reduces the risk that one person acts alone without anyone knowing. Choose signatories who are trusted, who attend meetings regularly, and who live close enough to deal with urgent matters. Avoid making a family pair both signatories if the club wants genuine independent checks, and make sure at least one signatory is not the person who handles the day-to-day records.
Ask the bank what the signing rules look like in practice. Some accounts allow any single signatory to make small payments and require two for larger ones, while others need both people for every transaction. Find out how signatories are added and removed, how long the change takes, and whether a committee decision needs to be recorded in writing first. Keep copies of these rules in the club’s records. Readers may also want to visit bajiroo.com.
Questions about fees and access
Ask about monthly charges, transaction fees, and any costs for paper statements or cheques. Some accounts are free for non-profit groups, while others charge for services the club may never use. Do not guess, and do not rely on what a friend once told you. Request the full schedule of charges in writing, and ask whether the account can be managed online by more than one person. Online access is often convenient, but it must be protected carefully, with passwords kept private and shared only with authorised people.
Consider how the club will receive money. Will members pay by bank transfer, by cash, or by a card reader? Each method creates different records, and the committee should decide who will check and record each payment. Ask the bank whether statements can be sent to a shared address, and whether the treasurer can download them for the committee to review. Clear answers now prevent confusion at the first annual review. You can also visit lpqueen.com for more reading.
Here are key questions to take to the bank:
- Who can sign, and what is the limit for single approval?
- How are signatories added, removed, or replaced?
- What are the monthly charges, transaction costs, and paper statement fees?
- How can statements and records be shared with the committee?
- What proof does the bank need from the club to open the account?
Setting up internal controls
Even a well-run account needs internal habits. Ask the treasurer to reconcile the statement against the club’s records every month, and have a second committee member check the reconciliation. Keep receipts and invoices for every payment, and file them in a clear order. Require written approval for any payment that is not part of the agreed budget, and record the reason in the minutes. These simple steps make the club’s money visible to everyone who should see it.
It is also wise to agree in advance what happens when a signatory leaves the committee or moves away. Update the bank promptly, change any online access, and inform the committee in writing. Many clubs forget this step until someone who has left still holds the power to approve payments. Writing a short procedure now saves a great deal of stress later. For a related read on this site, see Reviewing Your Pension Statements Line by Line Before.
Getting the paperwork right
Opening an account usually requires documents that show the club’s name, purpose, and committee members. Prepare a constitution or set of rules, a list of current officers, and a copy of a recent meeting record that approves opening the account. Banks may ask for identification from the people who will be signatories, so check the requirements early. Keep all these documents in a secure folder, and store a digital copy in a place the committee can access if the original is lost.
Finally, treat the account as a shared responsibility rather than one person’s job. A transparent account with two signatories, clear rules, and regular reviews gives members confidence that their money is safe. The effort you put into setting it up now will pay off every time the club pays for a hall, buys supplies, or reports its finances at the annual meeting.