I spent seven years as a part-time professor of English and Writing at a local community college, teaching freshmen composition. The Number One question my friends and family would always ask me was: How do you get over the stage fright of public speaking? My answer? You just force yourself to do it, day in and day out, and eventually, you get over it. The second most frequently-asked question was: What do you do when a student raises his or her hand and asks you a question you don’t know the answer to? I point out that it’s a great question, admit that I don’t know, and tell him or her that I will look it up and return with the answer by the next class period. I’m going to do something along those lines right here, right now, beginning with this column.

When I began writing Join the Club! a few months ago, the very first question I received was from ICLUBcentral member Kennedy Greenaway, who posted this question in response to my Welcome message: Can you give me some pointers on being a really, really good treasurer? I can’t, I told him. Though I was a member of the KIX Investment Club a while back, I never held the office of club treasurer. But I do know some experts who can, and they just happen to be a part of the ICLUB team. During the next few weeks, I’ll be consulting with these experts and relaying their top tips for terrific club treasurers – insights that hopefully will make your job a lot easier, whether you’re an experienced club treasurer or brand-new to the job.

The first tips are from expert Gene Rooks, who took over as club treasurer of the Southern Women Investing Money Club in Orlando, Fla., in 2003. Gene has also served as an Accounting Instructor for the BetterInvesting, Inc.’s Space Coast Chapter and currently serves as one of ICLUBcentral's volunteer club accounting advisers and a member of the beta test team for Club Accounting 3 and myiclub.com. She shared a total of 11 tips with me and said, “If all club treasurers could get on this page, we wouldn’t have anything to do on the Treasurer forums.” Here are the first five:

1.      Know where to go for help, and don’t be reluctant to do so.
My first question for Gene was, How do you know if you need help? Sometimes, you think you’re doing things the right way, and that everything is humming along smoothly – but you’re not and it isn’t. The answer? It’s the responsibility of your fellow club members to keep you in check. In her investment club’s earlier years, Gene noticed that a $5 credit kept showing up in her account. But, she figured, the club treasurer must know what she’s doing, so she never questioned it. “After she left, I figured out that she had been handling the credit the wrong way – but I had never asked,” she says. “Club members need to be aware and watching for things that don’t make sense.”

Likewise, if you are the club’s treasurer, and something doesn’t seem right or you are unsure – don’t hesitate to ask. The club forums on StockCentral are the perfect place to go. “That’s where you’ll get the best answers for any situation,” Gene says, “from the unit valuation system to tax deductions.”

2.      Never be the only one in the club familiar with the books.
Gene learned this lesson the hard way – in a trial by fire. “At one point, our treasurer just up and quit the club – and took four members with her,” she says. “The remaining club members wanted to continue, but we weren’t familiar with the books or the job.” Gene agreed to become the club’s treasurer – on one condition. “I said I was willing to take on the main job if someone else would step forward and serve as the co-treasurer. Co-treasurer should be an elected office in every investment club, right along with president, vice president, secretary and treasurer.”

There’s no precise job description for a co-treasurer and the position allows for a lot of flexibility. The club’s treasurer and co-treasurer can split the job in a number of ways. For example, the treasurer may be in charge of all book entries, while the co-treasurer makes all deposits and places the brokerage orders. “The important thing is that there is somebody else in the club at all times who understands the whole process,” Gene says.

3.      Understand and use the Unit Valuation System, and explain it to your club.
“For starters,” Gene says, “clubs need to know that there is such a thing as a Unit Valuation system. Members need to know how to read their status report and contribution line and the club’s treasurer needs to be able to explain these reports and answer members’ questions.” For more on the Unit Valuation System, follow this ICLUB link: http://www.iclub.com/clubs/unit_value.asp.

4.      Insist that your club always has the latest accounting software.
Gene recommends ICLUBcentral’s Club Accounting Online software (www.myiclub.com). Because the software is online, your club’s treasurer won’t have to go it alone. “The club treasurer can go online and someone else from the club can be there with them, walking them through it if they are having difficulties,” Gene says. In addition, the online software allows all of the club’s members to go online to view the club’s books (read-only format). “When you use the online version, your club’s books can be monitored by everyone in the club.” That makes it a lot more likely that someone will spot an error from the get-go – before it gets out of control. Gene also notes that the online and desktop versions of the Club Accounting software have interchangeable databases and use the same reports and entry screens.

It’s not only important to use accounting software, but equally as important to keep it up-to-date. Some clubs, Gene notes, are still using the very first software they ever had. That can lead to all kinds of problems – from the inability to access technical support (it has expired) to having to update all stock prices by hand (your old software doesn’t have the current datafeed). To top it off, your old software is likely not current on the latest IRS changes.

5.      Establish an understanding with the club that the treasurer has the final say.
While it’s a good idea to keep up with the club’s books and what the treasurer is doing, it’s also important to acknowledge that in the end, he or she has the final say. (Heck, it’s a big responsibility – there have to be some perks.) “I’ve talked to club treasurers who are being dictated to by the club’s members,” Gene said. “I always say, ‘Hey, the treasurer is supposed to know the best way to do things, and usually does. Don’t let the tail wag the dog.’”

One final word from Gene: “Don’t make things difficult for the treasurer by buying REIT’s, Limited Partnerships, Royalty Trusts, real estate, etc. These securities might make great personal investments, but they cause accounting problems that can be a nightmare – not to mention delays in receiving your tax forms.”

In my next column, I’ll reveal Gene’s remaining six tips for terrific treasurers. (I promise not to leave you hanging for too long.) In the meantime, please post any and all club treasurer questions you may have. I’ll address as many as I can in this series.