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.