According to the local laws and regulations of most countries, all registered NGOs are required to maintain a system for recording and submitting all types of financial transactions made by them for the purposes of implementing projects and running their organization. Since finances are a crucial part of organizational management, it is always a better idea to maintain a ‘Financial Policy’ for following procedures to keep the accounting system effective, transparent and easily manageable.
Following a systematic procedure and maintaining a policy on managing of NGO finances is a strong indicator of the good health of an organization. Even donor agencies would be most happy to render immediate funding support to such NGOs which have systematic policies in place for effective financial management. Operational or administrative manuals on conducting day-to-day financial transactions can be strong tools to demonstrate the good governance, transparency and systematic management of an NGO. Besides, such systems also enable in keeping a track of NGO expenditures.
But how can NGOs develop such manual for accounting and financial management? What are the various procedures for managing finances in an NGO? What are different types of systems to be followed for accounts management in NGOs? Is there a sample policy on NGO financial management?
We are providing a detailed explanation of how financial systems work in NGOs and how NGOs can make use of this guidance material to develop their own financial policy for effective organizational management, fulfillment of local statutory requirements and better mobilization of funding for the organization.
- What goes into an NGO Financial Management Policy?
- Who develops and updates the Financial Management Policy in NGOs
- Basis of Accounting and How to maintain Accounting Trail
- How to Manage Cash Account and Transactions in NGOs
- What Procedures can be followed for Salaries and Advances in NGOs
- How NGOs can operate Bank Accounts
- How NGOs can manage Bank Transactions
- How to validate bills, invoices, receipts & vouchers for effective NGO accounts management
- Types of Checks to be adopted for passing Vouchers for Payment
- How NGOs can maintain Cash Book
- Types of Books and Documents to be maintained for accounts management in NGOs
- Procurement, Stock and Inventory Management in NGOs
- Objectives and Procedures for Purchases in NGOs
- How NGOs can maintain Stock Register
- How to develop Financial Planning and Budgeting
- Budget Management and Planning the Financials
- How to develop Financial Reports in NGOs
- Internal Control Measures and Management Information Report
- How to maintain Fixed Assets Register