Society accounting & management solution in Mumbai

1
Society accounting management solution in
Mumbai
2

• The importance of the treasurer in the management
  of a housing society cannot be overstated.
• The treasurer is the backbone of the entire
  financial framework of the society and is
  responsible for any financial mismanagement or
  fraud.
• In this article, we define the functions of a
  treasurer so that you have a clear understanding
  of his responsibilities.

3
What is a Treasurer?

• The Treasurer is the elected official of the
  housing society who is responsible for financial
  and legal compliance, assets, and liabilities and
  whose primary job is to manage and oversee the
  financial affairs/activities of the society.

4
What type of treasurer should be appointed by the
housing society?

• Society should choose a treasurer who is
  financially literate, has knowledge of the
  functioning of the society accounting, and has
  skills such as paying attention to details,
  careful record-keeping habits, and strong moral
  values.

5
What is the role of the treasurer in housing
society?

• Some people usually mix the role of secretary and
  treasurer.
• This can be misinterpreted when reading the Model
  Housing of the State Housing Corporation, in
  which the Secretary is entrusted with the highest
  financial management duties.
• The role of the secretary is also administrative
  and communications-centric, while the treasurer
  is in charge of finance-related work.

6
Responsibility of Treasurer

• 1) Financial Management
• 2) Budget planning
• 3) Accounting/book-keeping

7
1) Financial Management

• All the money received by the society should be
  deposited in the bank/depository and receipts
  should be given to the payers.
• Record members' contributions for maintenance,
  compensation, general funds, etc., point out late
  or persistent payments to secretaries, and
  implement functional payment collection
  procedures that secretaries/committee members may
  follow.
• Pay all vendors, service providers, etc. by
  signing a check, bill of exchange, etc., or
  signing a bill of exchange (transfer of online
  payments).

8

• Reconcile the bills received from member ledgers,
  passbooks, statements, and general account
  ledgers from depositors and reconcile them
  annually.
• To verify the member's contribution between
  maintenance charges, parking charges, transfer
  premiums, and any other charges, as well as the
  amount paid by the members and the interest
  payable by the defaulters.
• Develop a financial transaction strategy to pay
  sellers and lenders, as well as a short cash
  policy for internal expenses and a cash
  withdrawal policy.

9
2) Budget planning

• Creating an annual budget for the community
• Create budgets for current or upcoming
  activities, such as festivals, repairs, and
  renovations.
• Creating revised financial estimates based on
  actual project or total year costs

10
3) Accounting/book-keeping

• Opening and managing the bank account of the
  Society
• Keep a detailed and accurate record of all
  socio-economic transactions.
• Manage timely records, cash flow management,
  securities, vouchers, invoices, receipts,
  counterfoils, and bank statements in all account
  books.
• The auditor is responsible for preparing the
  accounts of the society before the external
  accounts, monthly and annual financial statements
  as well as the profit and loss balance of the
  society.
• Provide any financial records that members wish
  to check, as well as submit them to the
  Registrar, Management Committee, or other
  government authorities.