Do you Need a Financial Management System?

Most organizations who spend money need some sort of financial management system. Think about your organization in answering the following questions:

1. Do we have a common fund of money that we use to operate with? YES / NO

2. Are we accountable to anyone for the use of our funds? YES / NO

3. Do our members have shared responsibility for funds? (i.e. obtaining and spending funds?) YES / NO

4. Do we need to plan? (i.e. established priorities for what we want to accomplish and describe how we are going to follow through?) YES / NO

6. Do we want to portray a professional and competent image to our members, sponsors and clients? YES / NO

7. Do we want to know how much money we have available on an ongoing basis so that we can invest any extra funds and/or avoid overdrafts? YES / NO

8. Are our individual members or directors liable for misuse of funds? YES / NO

These questions will assist you in deciding your needs for establishing a financial management system in your organization, or at least for reviewing how you currently handle financial matters.

Source: "Financial Management"
Author: Skills Program: For Management Volunteers, 1985