Many people are eager to manage other people’s finances. If you are given that privilege, then you must demonstrate good stewardship and deliver to the principal more than what was placed into your care. Accounting for an organisation’s finances is a great responsibility.
In reading this, you will develop a better appreciation for finances and accounting and understand that if funds are properly used, it can change the future for many stakeholders. Those interested in your organisation often look at your ability to remain in business. Once you can settle your debts early, you may be given opportunities to receive more credits. Financial institutions are often willing to lend some clients money if they can repay it in accordance with the plan.
Maintaining financial records is an important aspect for all organisations. The organisation must design certain systems that will allow it to minimise errors in the accounting records. The need for internal controls, which are part of the requirements for corporate governance, is often apparent. The auditors have a duty to review the financial records of the organisation in which they are employed. Each organisation must make a diligent effort to recruit persons who uphold and will execute certain qualities and ethics that will enhance it. Not everyone who works for the organisation will work in its best interests, but enough controls and monitoring mechanisms must be in place to help the organisation grow and remain in the right direction.
With the option to use information systems and information technology, organisations must ensure that they make investments in those areas and upgrade their systems as the need arises. Not all the money an organisation receives today must be consumed for today’s activities, but some of it must be invested so that the organisation can generate additional revenue and excess funds.
An organisation must not wait until the end of the year to assess its performance. Therefore, performance measures must be established and carefully assessed on a regular (e.g., monthly) basis. The financial ratios used to assess the financial reports will inform the assessor(s) about the financial health of the organisation.
As you continue to read this guide, you will have the opportunity to see many practical aspects of the organisation that will challenge you when exercising your fiduciary duties as an agent, working on behalf of your principal. This literature is divided into sections to carefully guide your understanding of accounting for the organisation’s finances.
Financial Management for Organizations
Learn how to effectively manage the finances of your organization with this guide from chartered accountant Geary Reid.
Any organization would be lost without competent financial personnel. In this book, experienced financial manager Geary Reid provides a concise but comprehensive overview of the key aspects of financial management in a business context, providing educational tools and specific examples that will prepare you for the challenges of your responsibilities. Gain an understanding of financial reporting, budgeting, resource management, and more, and become proficient in this key determinant of organizational success.
Geary Reid has an extensive background in the fast-paced environments of accounting, finance, and management, having worked as an inventory clerk, financial accountant, chief accountant, head of finance, and finance controller for both private and governmental organizations. In his first years of employment, he created a strategic document that increased revenue by twenty percent and was instrumental in helping a private-sector organization reduce check payments to subcontractors from one hundred to seven. Reid passed the Caribbean Examination Council exams with the highest marks of any student after only nine months of schooling, and he is a certified accountant technician and a member of the Association of Chartered Certified Accountants.
Financial accounting is a huge responsibility and a key determinant of success within an organization. In this book, experienced financial manager Geary Reid offers guidelines that will help you develop an appreciation for finances and accounting, including specific discussions of proper cost accounting, resource management, budget planning, and financial reporting. Reid also provides actionable tips on staffing and department coordination. With this guidance, you can develop the skills and gain the knowledge necessary to be an effective manager of financial assets.