Bank accounts and reconciliation

Banks usually offer accounts, specifically for community groups or charities, with free or low cost services.

bank card

Once your organisation has a legal structure and begins doing financial transactions, it will need a bank account. Some of the issues to think through when setting up the organisation’s bank account are covered in a WYCAS newsletter article "Banks and How to Use Them" which is available to download below.

Questions to ask when opening a bank account

  • What will the bank charges, based on your organisation’s estimated level of activity, be?
  • Will the bank or building society send out monthly statements? If so, are they free?
  • Is there a minimum balance to open and maintain the account?
  • What interest is paid on current and deposit accounts and when?
  • Is there a cheque book on the current account?  If not, how will your organisation make payments?
  • Will the account allow you to set up direct debits or standing orders to pay regular bills?  Do you need two people to approve this in order to set these up?
  • Where is the account held – or where can you pay in and withdraw cash?
  • Is there an ethical investment policy?
  • Are the accounts only available to registered charities?
  • Is there a local representative in your area or someone that you can ask if you have any questions?

A bank reconciliation is the process that you go through to ensure that the bank statement and the cashbook agree.  This is important to ensure that the organisation’s records are both complete and accurate. 

For help with managing bank accounts and more

A range of services provided by WYCAS (West Yorkshire Community Accounting Service) are available to help your organisation with setting up bank accounts and reconciliations including How to do Bank Reconciliation: A Good Practice Guide. To find out more contact WYCAS.

Download supporting article

The Balanced Sheet

(PDF, 194.7 KB)

"Banks and How to Use Them" on page 2.

Download