All nonprofits should keep financial records. These books should be reconciled at least once a month by the person who is charged with the responsibility of recording these financial aspects of the nonprofit. It’s a good idea to produce a monthly statement report that includes a column with assets, income, and net assets that is balanced against a column including liabilities and expenses.
Petty cash
There is usually a need for a nonprofit to have a small amount of petty cash on hand to deal with incidental expenses that crop up in the course of everyday operations. The necessary amount varies greatly by location, but should always represent a very small portion of even a monthly budget. A separate ledger tracking petty cash expenses may be kept if the expenses paid for by petty cash would otherwise seem extravagant.
