Tag Archives: #company organization

How to manage organization finance.

One of the cornerstones of a successful organization is having a sound financial management.Everyone with financial responsibility must understand the following terms:Assets, Liability, Running costs, Surplus,Deficit,Liquidity,Reserves, Balance sheet, Income and expenditure statement, Capital expenditure, Operating expenditure.

Keeping accounts-Accounting is the process of tracking and cataloguing income and expenditure.It is also a key tool for financial control.You will need to keep accounts that show daily transactions as well as an overall picture of the financial workings of the organization.Accounts should show income and expenditure and keep track of assets and liabilities.A petty cash account should be opened and kept separately to account for the actual cash kept by the organization.

Financial statements -The two main documents that need to be be presented to the membership of the organization are balance sheet and the income and expenditure statement (or profit and loss account). Complementary documents may be required.These documents will give members a feel for the financial stability of the organization and as stated above are tools for financial control.

Balance sheet – Your balance sheet is the list of assets and liabilities your organization has at a given time.It sets out the fullest financial picture of your organization at a particular time and reading.The balance sheet must contain the following:

  • The final balances of the preceeding financial year.
  • Break down of the capital employed
  • Details of freeholds and leases.
  • Value of patents and trademarks
  • Valuation of fixed assets and how the figures we’re arrived at.
  • Details of any investments and their values.
  • Loans
  • Cash and debts
  • Stock and the basis of it’s valuation.
  • Total bank loans and overdrafts.

Income and expenditure statement This statement is an analysis of how the capital or net worth of your organization has changed over a given period.It is a record of income generated and expenditure incurred over this period.An income and expenditure account must show:

  • Turnover: total value of income that your organization receives during a particular period of time.
  • Income from rents and invest
  • Equipment hire charges
  • Depreciation charges and how they are arrived at.
  • Interest on loans
  • Tax charges (if applicable)
  • Transfer to and from reserves
  • Any exceptional accounting adjustments.

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How to manage organization finance.

One of the cornerstones of a successful organization is having a sound financial management.Everyone with financial responsibility must understand the following terms:Assets, Liability, Running costs, Surplus,Deficit,Liquidity,Reserves, Balance sheet, Income and expenditure statement, Capital expenditure, Operating expenditure.

Keeping accounts-Accounting is the process of tracking and cataloguing income and expenditure.It is also a key tool for financial control.You will need to keep accounts that show daily transactions as well as an overall picture of the financial workings of the organization.Accounts should show income and expenditure and keep track of assets and liabilities.A petty cash account should be opened and kept separately to account for the actual cash kept by the organization.

Financial statements -The two main documents that need to be be presented to the membership of the organization are balance sheet and the income and expenditure statement (or profit and loss account). Complementary documents may be required.These documents will give members a feel for the financial stability of the organization and as stated above are tools for financial control.

Balance sheet – Your balance sheet is the list of assets and liabilities your organization has at a given time.It sets out the fullest financial picture of your organization at a particular time and reading.The balance sheet must contain the following:

  • The final balances of the preceeding financial year.
  • Break down of the capital employed
  • Details of freeholds and leases.
  • Value of patents and trademarks
  • Valuation of fixed assets and how the figures we’re arrived at.
  • Details of any investments and their values.
  • Loans
  • Cash and debts
  • Stock and the basis of it’s valuation.
  • Total bank loans and overdrafts.

Income and expenditure statement This statement is an analysis of how the capital or net worth of your organization has changed over a given period.It is a record of income generated and expenditure incurred over this period.An income and expenditure account must show:

  • Turnover: total value of income that your organization receives during a particular period of time.
  • Income from rents and invest
  • Equipment hire charges
  • Depreciation charges and how they are arrived at.
  • Interest on loans
  • Tax charges (if applicable)
  • Transfer to and from reserves
  • Any exceptional accounting adjustments.

How to manage meetings.

All organizations hold meetings for one purpose or another,such as committee meetings or general assemblies as well as informal, internal meetings with volunteers, managers and employees.How your meetings are run will depend on the purpose and to some extent on the degree of formality.Formal meetings are likely to have an established structure and process, while informal meetings may be more of a conversation among the participants.

A formal meeting in progress

Tips for good meetings

There are a number of tips that can be followed to make sure that every meeting you hold is a good one.

  • Have a definite reason for every meeting.Pointless meetings waste everybody’s time.
  • Question every item on the agenda before calling the meeting.Could the items be handled as well without a meeting?
  • Limit attendance at meetings to those concerned with the topics on the agenda.The larger the crowd the more discussion and the longer the meeting.
  • Be sure participants know the purpose of the meeting in time to prepare for it.Have them bring relevant material with them.
  • Choose a meeting place that eliminates interruptions and provides a pleasant, comfortable atmosphere.
  • Make everyone turn off their mobile phones, laptops and other electronic devices.
  • Plan ahead for equipment that will be needed in the meeting room and make sure it works.
  • Arrange tables and chairs so that all participants can see each other.
  • Pay attention to effective conduct of the meeting.
  • Begin on time, regardless of late arrivals.Discourage lateness by having the minutes of the meeting show not only those present and absent but also those arriving late.
  • Set up a time limit for each topic on the agenda and stick to it.
  • Have the minute taker sit where the faces of all participants are visible.

Minutes of the meeting

It is important to have a good record of what has happened in the meeting.Minutes are important because:

  • They are authenticated record of the proceedings.
  • They form the basis for any actions arising from decisions taken at the meeting.
  • They are important points of reference for an organization and
  • They form an important historical and archival record for the organization.

Minutes of meetings should include:

  • The heading,which includes the date,place and title of the organization and committee.
  • A list of those present.
  • A list of those who have apologized for not being able to attend and a record of those who were late.
  • Ratification of previous minutes with any amendments properly recorded.
  • Matters arising.
  • The items discussed in order that they were discussed.
  • Date of next meeting and
  • Action column.

The minutes should be checked and approved by the person who chaired the meeting prior to circulation.These should then be circulated to everyone who should have access to the information.It is important to adequately file minutes and all documentation related to meetings.In order to be able to track any information when needed and to ensure continuity and adequate transfer of information.

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