What Should a Nonprofit Board Treasurer Check Every Month? A 10-Point Checklist

Short answer: A treasurer’s job isn’t to redo the books. It’s to catch problems early. Each month, check that the reports came on time, the bank accounts were reconciled, cash covers the next few months, grant balances make sense, payroll taxes are paid and spending tracks the budget. Ask about anything that looks odd.

By Rex Biggs II, CPA, founder of Rektio Accounting. Rektio is a bookkeeping and controller team in Fishers, Indiana. We keep the monthly books for 501(c)(3) nonprofits with $1M-$15M in revenue across the US.

Why do so many treasurers end up just signing off?

Short answer: Most treasurers are volunteers, not accountants. Without a short checklist, it’s easy to nod at the reports and move on.

Here’s the hard part. You said yes to being treasurer because you care about the mission. Then the first board packet shows up. It’s twelve pages of numbers. The meeting is in an hour. And everyone looks at you.

You’re not alone. One treasurer on Reddit wrote a checklist so the finance committee would “actually catch problems instead of just rubber-stamping reports.” Another put it well: “an effective treasurer is not a financial or accounting mastermind but someone following the correct checklists.”

That’s the fix. A short list you run every month, plus a finance team that gives you clean reports to run it on.

What reports should a treasurer get every month?

Short answer: At least a statement of financial position, a statement of activities, budget vs. actual, a cash summary and a grant or restricted-funds summary.

Here’s a solid monthly set:

• Statement of financial position. What you own and what you owe. (This is a nonprofit’s balance sheet.)
• Statement of activities. Money in and money out for the month and the year so far.
• Budget vs. actual. How the year is tracking against the plan the board approved.
• Cash summary. Cash today, and how many months of costs it covers.
• Grant and restricted-funds summary. For each grant: the award, what’s been spent, what’s left and the end date.
• AR and AP aging. Who owes you, and who you owe.
• A short note. A few plain sentences on what changed and why.

Every board is different. Your package should fit your board, not a template.

What are the 10 checks to run every month?

Short answer: Ten quick checks cover most of the problems that sink small nonprofits. Most take a minute or two each.

1. Did the reports show up on time? Late or missing reports are a red flag on their own.
2. Were the bank and card accounts reconciled? Ask for the date each one was reconciled. It should match the month you’re reviewing.
3. How many months of cash do you have? A nonprofit can show a surplus on paper and still run short of cash.
4. Is spending tracking the budget? Ask about big gaps. Pick a limit, like 10%, and ask about anything over it.
5. Are restricted funds kept separate? Money given for a purpose should be tracked apart from general money.
6. Do the grant balances make sense? Compare what’s left against each grant’s end date. A balance that barely moves near a deadline is worth asking about.
7. Are payroll taxes paid and current? Late payroll taxes are one of the fastest ways a small nonprofit gets into trouble.
8. Do any numbers look stuck or strange? Watch for a line that’s exactly the same for months, or any negative balance nobody can explain.
9. Is anything old in receivables or payables? Look at items more than 30 days old. Old pledges and unpaid bills both matter.
10. Did any unusual payments go out? Look for one-off payments, payments to board members or their families, or anything that needed board approval and didn’t get it.

You don’t need to dig into every line. You need to ask good questions and get clear answers.

What does a strong monthly package look like next to a weak one?

Short answer: A strong package is on time, reconciled, short and explained. A weak one is late, long and leaves you guessing.

	Strong monthly package	Weak monthly package
Timing	Arrives on the same day each month	Shows up late, or the night before the meeting
Bank accounts	Reconciled, with dates shown	“We’ll get to it”
Cash	Shows months of cash on hand	Shows only the bank balance
Budget	Budget vs. actual with notes on big gaps	No budget comparison
Grants	One line per grant: award, spent, left, end date	Grants lumped together
Restricted money	Shown apart from general money	Mixed in
Explanation	A short note in plain English	Twelve pages of numbers and no words
Review	Checked by someone other than the preparer	Nobody reviews it

If your package looks like the right column, that’s not your fault. But it is worth fixing.

What questions should a treasurer ask the finance team?

Short answer: Ask simple, open questions. Good finance staff will be glad you asked.

• What surprised you this month?
• Which accounts were reconciled, and when?
• Are any grants at risk of not being spent by the deadline?
• Are any grant or funder reports coming due?
• Is there anything you’re unsure how to record?
• Who reviews your work before it comes to us?

If nobody reviews the work before it reaches the board, that’s the biggest gap to close.

How does Rektio help nonprofit boards?

Short answer: We keep the books every month and build a board package for each client. A U.S.-based account manager reviews the work before you see it.

Here’s how it works with us:

• A team, not one person. A team of two or three people does your monthly bookkeeping and controller-level close in QuickBooks Online.
• Grants and restricted funds. We track each grant and keep restricted money apart from general money.
• A board package built for your board. We build it around what your board actually reads.
• Review before you see it. A U.S.-based account manager checks the work every month.
• Behind on the books? We almost always build catch-up into onboarding or handle it as a special onboarding project.

Pricing starts at $1,500 a month, scoped to your organization. It’s month-to-month with 30 days’ notice. Call or text (463) 215-0968, or book a call.

FAQ

How often should a nonprofit board see financial reports?

Most boards should see a full set every month, or at least before every board or finance committee meeting. Monthly reports let you catch a problem while it’s still small.

Does a nonprofit treasurer need to be an accountant?

No. A treasurer needs to ask good questions and follow a checklist. The finance team should give you clear reports and plain answers.

What is the biggest red flag in nonprofit financial reports?

Late or missing reports, and bank accounts that haven’t been reconciled. If the basics aren’t done on time, the rest of the numbers are hard to trust.

How can a treasurer check grant balances?

Ask for a one-line-per-grant summary showing the award, what’s been spent, what’s left and the end date. Compare what’s left against the time remaining.

Does Rektio prepare board packages for nonprofits?

Yes. Rektio keeps the monthly books for 501(c)(3) nonprofits with $1M-$15M in revenue and builds a board package customized to each client.