Financial Manager’s Toolbox

An organization’s financial documents include:

  1. Balance sheet
  2. Income statement
  3. Cashflow statement
  4. Budget

When executed correctly, these documents provide the necessary the information organizational directors and the CSO require to effectively run the organization. It is the responsibility of the Financial Manager to ensure that these documents are prepared and updated with accurate information in a timely manner and alert the CSO and directors of potential red flags. Statements should be prepared and distributed on a monthly basis so that the organization is not relying on old data, and managers can take well thought-out actions. Because these documents influence various activities throughout the organization, they should be understandable to non-accounting people and easy to interpret.

Ten Building Blocks for Sound Financial Management

  1. Make the governing body responsible for oversight
  2. Adopt written financial policies
  3. Require solid internal controls
  4. Make your annual budget resource-driven
  5. Watch cash closely
  6. Plan on making a profit
  7. Stay lean
  8. Develop a decision-oriented accounting system
  9. Contain your financial management costs
  10. Require an annual audit