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Managing Your Finances

McGill.CA / Student Life and Learning / Student Resources / For Student Societies

The information on this page has been adapted from this document created by the Science Undergraduate Society.

Three Principles of Sound Financial Practice

  1. Proper documentation

  • Have a written policy that requires proper documentation for all financial transactions (receipts, contracts, reimbursements, etc.).
  • Keep invoices from all suppliers/contractors for the required period of time (seven years according to government regulations).
  • Have a requisition/approval form for large expenses.
     

  1. Proper financial procedures, policies and controls

  • Require two out of three/four authorized signatories on cheques.
  • Draft a list of authorized signatories.
  • Approve all expenses to be reimbursed beforehand.
  • Implement processes to ensure compliance with all policies and procedures, including periodic reviews of various expenses and reconciliation of bank accounts.
     

  1. Proper accounting records

  • Leave an audit trail; organize and keep all receipts, invoices, contracts, cheque stubs and any other relevant documentation in a secure location.
  • Keep separate accounting books for revenue, expenses and petty cash (float).
  • Use either a general ledger book or an accounting software to record all financial transactions; this will facilitate the transfer of information to your accountant at the end of the fiscal year.

Things to Avoid

  • Leaving blank cheques in publicly accessible areas
  • Keeping cash in publicly accessible areas
  • Storing more cash than is necessary
  • Having the person claiming expenses approve them
  • Having cheque signatories write/approve their own cheques
  • Pre-signing blank cheques
  • Issuing reimbursements without proper and complete documentation

Things to Remember

  • Prepare budgets for everything: events, projects, initiatives, meeting expenditures, etc.
  • Pay off debts as soon as possible to avoid interest.
  • Deposit cash and cheques in a timely manner.
  • Be informed about Revenu Québec's and Registraire des Entreprises du Québec (REQ)'s policies and documentation.
  • Be informed about documentation required by your MOA with McGill University (e.g., insurance policy, annual declaration of incorporation, audited financial statements, etc.).

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Learn more about the land you’re on by following this link, and commit to taking action to support local Indigenous communities.

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