In many small charities and not-for-profits, the treasurer or finance lead holds a huge amount of institutional knowledge. They know the passwords, the processes, the quirks of your Xero setup and often, they’re the only one who does.
But what happens if they leave suddenly? Whether it’s due to illness, relocation, or simply moving on, losing your key finance person can be disruptive or even risky.
This post is all about building financial resilience so your charity can keep running smoothly, no matter who’s in the treasurer’s seat.
Why Financial Resilience Matters
Financial resilience isn’t just about having money in the bank, it’s about having systems, documentation, and shared knowledge that protect your organisation from disruption.
Without it, you risk:
Delays in paying bills or staff
Missed reporting deadlines
Lost access to financial systems
Stress and confusion for your board and team
1. Document Key Financial Processes
Start by writing down the steps for your core financial tasks:
Paying bills and reimbursements
Reconciling bank accounts
Managing payroll
Tracking grant spending
Preparing reports for the board or funders
Tip: Use plain language and screenshots where possible. Or use a screen recording software suche as Loom where you can record the process in video. Store the guide in a shared folder that’s backed up and accessible to at least two people.
2. Use Cloud-Based Tools Like Xero
If you’re still relying on spreadsheets or desktop software, now’s the time to switch.
Xero allows multiple users to access your financial data securely from anywhere, making transitions much smoother.
Benefits:
No need to transfer files or install software
Easy to grant or revoke access
Real-time visibility for your board or accountant
3. Create a Financial Handover Checklist
A handover checklist ensures nothing gets missed when someone steps down. Include:
Login details (stored securely)
Key contacts (e.g., accountant, payroll provider)
Reporting deadlines
Bank account and payment authorisation processes
Where to find past reports and receipts
Tip: Review and update the checklist annually, even if no one is leaving.
4. Train a Backup Person
Even if your charity only has a small team, someone else should know the basics of your financial systems.
This could be:
A board member
A volunteer with admin experience
Your external bookkeeper or accountant
Tip: Schedule a quarterly “walkthrough” where the backup person shadows the treasurer or runs a report themselves.
5. Keep Your Xero Setup Clean and Accessible
A tidy Xero setup makes it easier for someone new to step in.
Make sure:
Your chart of accounts is clear and relevant
Tracking categories are used consistently
Source documents are attached to transactions
Bank feeds are active and reconciled regularly
Bonus: This also helps with Tier 3 reporting and audit readiness.
Need Help Building Financial Resilience?
At Varntige, we help charities set up Xero and document their financial systems so they’re not reliant on one person. Whether you’re preparing for a handover or just want peace of mind, we can help you build a resilient, easy-to-manage financial setup.
Book a free consultation or ask us about our Xero setup and documentation services.
