Financial administration and management
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CloseCovering the financial aspects of running a charity shop.
The need for reports and controls
Charity shops need to adhere to the law and standards of good practice. A shop’s performance will need to be monitored by both the manager and staff from head office.
Maintaining records of performance enables you to highlight areas of concern and keep the parent charity informed of profitability. A weekly report should be completed by shop managers and sent to head office, detailing income and expenditure, as well as volunteer information and discrepancies.
Taking money in the shop
Shoppers can spend more if your shop accepts debit and credit cards. Ask your bank or charity’s Finance Department for more information on installing a PDQ machine.
All till workers should be briefed on how to spot forged banknotes, what is needed to accept a cheque and how to deal with a refused card payment.
Some people may wish to let the shop keep their change, or to give larger cash donations. Consider acquiring a counter collection box or a larger floor-standing model.
Financial reporting
Data captured by tills can help with both analysis of sales and security measures. Stock losses will need to be monitored and steps taken to prevent theft and fraud.
Financial controls
Cashing up and banking should be done daily. It is safest for two people to go to the bank together, varying the time and their route each day.
As little cash as possible should be kept in the shop overnight. The till drawer should be left open when the shop is closed - and obviously empty - to prevent it being forced.
Useful links
- Banknotes (Bank of England) - including information on security features and spotting forgeries
- Charities Resource Network - good practice for accounting, auditing and human resources, among other topics
- Her Majesty's Revenue and Customs - for information on tax law.
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