What is a treasurer's account?

Someone has just made you treasurer. Congratulations — you are now the person the committee looks at when anyone asks where the money is. The first practical question is almost always the same: what is a treasurer's account, and how do we get one?

The short answer

A treasurer's account is the bank account a treasurer runs on behalf of an organisation — a club, society, community group, PTA, church, residents' association or small charity — rather than on their own behalf. Some banks and credit unions sell it under that exact name; others call it a community account, a club account or a charity account. The name on the brochure matters far less than what the account actually does.

Strip away the marketing and a proper treasurer's account is one that:

• Is held in the organisation's name, not the treasurer's personal name.
• Allows several named signatories, so more than one person can authorise a payment.
• Produces statements the treasurer can reconcile and report from.
• Costs little or nothing to run, because every pound of fees is a pound off the cause.

Why it must not be a personal account

Plenty of small groups start out with the money in the treasurer's own current account. It feels harmless — it is anything but. Money in a personal account is, legally, that person's money. It is exposed to their bankruptcy, a relationship breakdown or their death, and if a dispute ever arises the committee has nothing clean to point at. It also quietly mixes the group's transactions with the treasurer's weekly shop, which makes the year-end accounts a forensic exercise rather than a reconciliation.

There is a reputational cost too. Funders, parish councils and grant panels ask to see an account in the organisation's name with two signatories. If you cannot show one, some of them simply will not fund you.

Signatories and dual authorisation

The single most useful control a small organisation can have is two people authorising every payment. It protects the funds, it protects the committee, and — this is the part treasurers underrate — it protects you. A treasurer who is the only person who can move money is the only person anyone can suspect if something goes wrong. Dual authorisation means nobody ever has to take your word for it.

Set up at least three signatories where you can, so a holiday or a resignation doesn't freeze the account, and make sure changing signatories is written into your minutes. Treasurers change; accounts shouldn't have to be reopened every time they do.

Which account suits which organisation

• Unincorporated clubs, societies and community groups — a community or treasurer's account from a high-street bank, a building society or a local credit union. Look for no monthly fee, multiple signatories and online access for the whole committee.
• Registered charities — a dedicated charity account, with multiple signatories, dual authorisation and staff who understand trustee governance. This is what the Charity Commission and your funders expect to see.
• CICs and company-style social enterprises — an ordinary business account. A one or two-owner CIC may qualify for a free digital account such as Mettle, which feeds straight into FreeAgent.

One honest caveat. Mettle is built for sole traders and companies with one or two owners. That makes it a good fit for a small, company-style social enterprise or a one or two-owner CIC — and a poor fit for a trustee- or committee-governed charity, club or community group, which needs a proper charity or community account instead. It is not a treasurer's account, and we would rather say so than sign you up to the wrong thing. Our banking page sets out which option suits which structure.

What the bank will ask for

Opening the account is usually the slowest part of the job, so gather this before you start:

• Your governing document, constitution or rules.
• A list of trustees, directors or committee members with addresses and dates of birth.
• Photo ID and proof of address for every proposed signatory.
• Your charity number, or CIC or company number, if you have one.
• A minute of the meeting that approved opening the account and appointed the signatories.

Banks are slow on community accounts, so allow weeks rather than days, and chase politely.

Worked example: why the balance is not the answer

Take an illustrative village hall committee — the figures are invented, but this is the exact conversation that happens in a first meeting with a new treasurer. It is 31 March, the account shows £14,820, and someone proposes spending £6,000 on the roof.

Break the balance down by where the money came from:

• National Lottery grant for the toddler group, awarded for that purpose — £8,500, of which £2,100 already spent, leaving £6,400 restricted
• Parish council grant for accessible doors, work not yet started — £4,000 restricted
• Hall hire fees taken over the year — £3,900 unrestricted
• Donations and raffle takings — £520 unrestricted

Restricted money: £6,400 + £4,000 = £10,400. Unrestricted: £3,900 + £520 = £4,420. The arithmetic reconciles to the £14,820 on the statement, and it says the committee can spend £4,420 on the roof, not £6,000 — and that is before setting anything aside for the insurance renewal and the electricity bill that land in April.

Spend the toddler-group grant on roofing and the committee has misapplied restricted funds. In practice that usually means repaying the funder, and it is very often the end of the relationship with them. The account did nothing wrong here: a bank balance is one number, and a treasurer needs at least two. Record the fund each pound belongs to at the point it arrives, and this reconciliation takes five minutes at any meeting. Reconstruct it in April from twelve months of statements and it takes a weekend.

The account is only half the job

A treasurer's account gives you a clean place to keep the money. Keeping track of whose money it is remains your job. If your group receives grants or donations given for a specific purpose, that money is restricted — you cannot spend it on general running costs, however tight things get. A healthy-looking balance made up almost entirely of restricted grant money is one of the most common traps in the sector; our post on restricted vs unrestricted funds explains why the bank balance lies.

Beyond that, the treasurer's year is fairly predictable: keep the records as you go rather than in a panic each spring, reconcile the statements monthly, present a short report to each meeting, and prepare the annual accounts in the right format for your size and structure. If you are a registered charity, our charity accounts and SORP guide explains which rung of the reporting ladder you are on and whether you need an independent examination.

That last point is moving in small charities' favour. In England and Wales, for financial years ending on or after 30 September 2026, the income threshold above which accounts must have an independent examination rises from £25,000 to £40,000. A group turning over £30,000 that needed an examiner for the year ending 31 March 2026 will not need one for the year ending 31 March 2027. Our post on SORP 2026 and the new charity thresholds sets out the full set of changes and the dates they each start from — they are not all the same date, which is where trustees keep tripping.

Handing over well

The kindest thing a treasurer can do for the next one is leave a tidy trail: the account in the organisation's name, signatories minuted and up to date, statements filed, restricted funds clearly labelled, and last year's accounts where someone can find them. Most treasurer horror stories are handover stories.

If you'd rather not do it alone

We work with charities, CICs, clubs and community groups across the UK — setting up the right banking and record-keeping, tracking restricted funds, preparing the annual accounts and acting as independent examiner where that fits. Fixed fees from £39 + VAT a month, and a named accountant a treasurer can actually ring. Get started.