Reporting and Operations

Deposits

Size of Organization: 
Small

If possible, have an individual outside of the accounting department open the mail. This individual should make a list of the checks received prior to forwarding the checks to the accounting department.

If a large amount of cash (as opposed to checks) is received, two people should always open the mail. In cases where an event is held, two people should always be present at each site where cash is collected.

The organization should have a “For deposit only” stamp. The stamp should also include the organization’s name. Every check received should be stamped prior to deposit.

A deposit slip should be prepared listing all checks.

Copies of the checks deposited are often kept as support for the deposit. If any correspondence has been received with the check, it should also be kept.

When recording the deposits in the general ledger, care should be given to the type of revenue received. All like items should be coded to the same account.

Management of the organization should receive regular notification of the amount of the deposits made.

If a donor has restricted the usage of the contribution to a particular program, it will be necessary to record the amount as temporarily restricted. All allowable expenses incurred in connection with the grant and program will need to be tracked separately.

If you are on the accrual basis and the donor has agreed in writing to give a multi-year contribution, the full amount should be booked as income in the year the pledge is received.