Financial management is more than keeping accounting records. It is an essential part of organisational management and cannot be seen as a separate task to be left to finance staff or the honorary treasurer. Financial management involves planning, organising, controlling and monitoring financial resources in order to achieve organisational objectives.
Benefits of good financial management
Good financial management will help your organisation to:
· make effective and efficient use of resources
· achieve objectives and fulfil commitments to stakeholders
· become more accountable to donors and other stakeholders
· gain the respect and confidence of funding agencies, partners and beneficiaries
· gain advantage in competition for increasingly scarce resources
· prepare for long-term financial sustainability.