FINANCIAL MANAGEMENT

FINANCE

Finance is an important element within any organization even AIESEC, to ensure we are able to utilize the financial resources available to support more activities to be facilitated by every level or the organization with the purpose providing young people with a platform to explore and develop their leadership potential.

             

The Finance Subsystem is of significant importance in the organization since it mainly deals with 1. Revenue generation 2. Financial management The basics of financial management include planning and designing a budget, ongoing accounting and bookkeeping, and managing cash flow.

What we’re gonna learn?

1.  General Control 2.  Accounting Cycle, Chart of Account 3.  Cash and Bank Control (Documentation

Procedure) 4.  Reports 5.  Accrual Basis 6.  Learn to Use Quickbooks 7.  Governance and Accountability

General Accounting Controls • Establish clear lines of authority (Segregation of Duties) • Have written policies and procedures for the activities of the body to enhance controls. (Documentation Procedure) • All forms, cheques , receipts, and tickets should be pre-numbered. This will facilitate audit trail • Monthly or quarterly reports on all activities should be prepared and submitted for review. • Internal or external audit. • Internal checks by the management • It is always advisable to prepare an annual budget which is guide on the various income and expense targets.

Compare each control for all LCs

Various Components of Accounting Cycle

O Income O Expenses O Fixed Assets O Accounts payable O Accounts receivable O Cash and Bank O Donations O Reports

Open your Chart of

Accounts! :D

Cash  &  Bank   O Strict documented controls/ procedure must be in place O Daily/weekly cash reports and reconciliations must be

prepared and reviewed O Cash book must be updated on an daily basis O Monthly bank reconciliations must be prepared O Proper records for both cash and bank must be maintained. O Withdrawals (penarikan) from both cash and bank must be

properly documented and authorized by approved signatories O Donated funds must be maintained in a separate account for

ease of accounting to the donor

Documentation Procedure O Payment Voucher O Receipt of Payment O Claims without Receipt O Expense Report O Cash Advance O Cash Voucher

Finance Cash Flow

Other Functional Cash Flow

Reports O The following reports are important:

O Income & Expenditure statement O Balance sheet O Cash flow statement O Variance analysis (Budget Realization) O Cash book

O Always compare the performance of the organization with the annual budget

Governance & Accountability O Review of the budget O Audits O BoA meetings O LCEB Meeting O Controlling O Reporting

Thank you J