Understand your organisation’s finances.
Know your business.
While some things are more complicated today, others are much more manageable when your business has the right foundations and technology. Keep financial operations simple so people understand and can act accordingly.
Learning how to manage the financial side of your business and knowing the key numbers is critical. Overseeing the finances is one of the most essential tasks of an owner, manager, director, or board member.
How financially savvy are you, and how well do you understand your organisation’s financial performance and position? Would you like to know more about managing an organisation, but can’t make sense of things?
Financial literacy will put you in the best position to promote and fulfil your organisation’s purpose, vision, mission and objectives. If you don’t understand how the finances work, you’ll risk being caught up in “Stuff” and will likely fail.
What must you understand?
Most people are motivated by a desire to make easy money. However, they fail to align their financial activities, making it less likely for them to prosper. What are the critical things to understand about your organisation’s finances?
- Financial roles and responsibilities.
- Cash flow management and statements.
- Profit and loss statements.
- Balance sheets.
- Budgets.
- Forecasting methods.
- Financial reports
- Oversight and monitoring
Know what to look for. Cut through the jargon to understand what you need to know about the finances.
Quotable quotes.
“Never forget you are an important investor in your business or non-profit”. Peter Sergeant
“It’s strange how everyone believes in financial planning, but few ever do it well. If you have money problems, the Business Model could be wrong”. Peter Sergeant