Financial Management In Nonprofits
New nonprofit leaders and managers have to develop at least basic skills in financial management. Expecting others in the organization to manage finances is clearly asking for trouble. Basic skills in financial management start in the critical areas of cash management and bookkeeping, which should be done according to certain financial controls to ensure integrity in the bookkeeping process. New leaders and managers should soon go on to learn how to generate financial statements (from bookkeeping journals) and analyze those statements to really understand the financial condition of the business. Financial analysis shows the "reality" of the situation of a business -- seen as such, financial management is one of the most important practices in management. Budgets will help you understand the basic in financial management, and build the basic systems and practices needed in a healthy organization.
Revisit the budget on a regular basis. Instruct all organization members to document all expenses closely. Routinely reevaluate the budget to keep a tight handle on the money. When it comes down to it, managing a non-profit group revolves around one bottom line. You are in the non-profit field to make a difference for a cause you care about. Creating a solid budget for a nonprofit ensures that the most good will come out of your efforts.
Finding Information On The "How To's"
Building your nonprofit budget is not easy!One of the most important aspects of your budget is knowing that what you present to your board and the public is correct and accurate. Donors expect that you are using the money wisely. It is essential that you can provide the facts and figures they will ultimately request at your fingertips! While it can be expensive, one of the best tools you can have is a good bookkeeping system!
It is a fact of life in the nonprofit sector that organizations will not truly become viable until they have the correct financial policies and procedures in place. One way to ensure that your organization is transparent and accountable financially is to be able to rely on the guidance of others that not only know what they are doing but have the talent to be able to explain it to others so it makes sense.
Bender Consulting can help your organization with the following: