Staying On Top of Your Financials
Staying on top of financials helps your organisation keep accountable. Learn how your whole committee can better understand your financial status.
Authored by: iClick2Learn Team
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Staying On Top of Your Financials
Managing not-for-profit financials can be complex. Your organisation requires a high level of financial oversight to keep up with donor expectations, stay on top of cash flow, and balance money and mission. At times, it can be challenging to create a clear, cohesive financial story.
But staying on top of your financials doesn’t have to be overwhelming. Regular review can help your committee get on the same page. When the treasurer presents a simple financial update at each meeting, members gain a more comprehensive understanding. After all, the entire board is responsible for your organisation’s mission. Staying on top of your finances helps you achieve your objectives and maintain a good reputation.
The Treasurer’s Financial Report
As treasurer, it is best practice to present a financial report at every meeting. This simple report can help keep your committee aligned and informed on financial activities and objectives.
The treasurer’s one-page report can include:
- Operating results for previous months
- Contracts and insurances, including any renewals due
- Employee liabilities, including workers compensation and superannuation
- Accounts payable
- Financial report analysis, including profit and loss, balance sheet, and cash flow projection
- Business activity statement
- Bank account balances
You can find a sample one-page report here.
Staying On Top of Financials: Public Trust
Your organisation will always have the burden of public trust. NFPs are expected to maintain impeccable processes and are held to a different standard than for-profit organisations.
To ensure funds are being properly allocated, watchdog groups constantly monitor the financial activities of not-for-profits. When your board takes the time to understand your financial activities, you ensure continued public trust– a factor critical to any NFPs success.
Not-For-Profit Financials: Conclusion
Whether you’re treasurer or not, your organisation’s financials are your business. When your committee develops a solid understanding of your financial activities, you can better align on goals, strategies, and governance.
There are many benefits of financial transparency and regular review:
- Make the most of your tax-exempt status
- Make better-informed decisions
- Avoid risk from fraud
- Create a more positive culture for members
- Preserve the essential trust of your donors
- Fulfil your fiduciary duties
When your board regularly reviews financial activities, they demonstrate a commitment that goes above and beyond what the law requires. Remember–your not-for-profit’s financial health and future depend on a straightforward, well-informed financial story.
- Tags | Board, Boards, Committee, Committees, Finance, Financials, Management