Here are some key areas, along with practical steps, to get you started:

1. Budgeting:
• Step 1: Review your current budget. Are your income sources (donations, grants, etc.) accurately projected? Ensure you’ve accounted for both restricted and unrestricted funds.
• Step 2: Forecast your expenses over the next 6–12 months. Look at any planned activities, programmes, and operating costs.
• Step 3: Use budgeting software (such as Xero or QuickBooks) or a simple spreadsheet to track and adjust your budget throughout the year. This ensures you're flexible enough to deal with unexpected expenses.
2. Financial Reporting:
• Step 1: Familiarise yourself with your organisation’s financial reporting obligations, including annual reports and trustee reports. Make sure you're following any updates in reporting standards, such as SORP (Statement of Recommended Practice).
• Step 2: Ensure that your income and expenses are clearly categorised in your financial statements. This makes it easier for stakeholders and auditors to understand how your organisation operates.
• Step 3: Use a report template or software to generate regular reports for your board meetings, highlighting key performance indicators (KPIs) and trends.
3. Cash Flow Management:
• Step 1: Create or review your cash flow statement. Are you regularly monitoring your incoming and outgoing cash to prevent shortfalls?
• Step 2: Project your cash flow for the next quarter or year. Identify periods when cash might be tight, and plan accordingly (for example, by scheduling major expenses after significant funding has been received).
• Step 3: Consider setting up an emergency fund or short-term line of credit to help with any unforeseen cash shortages.
4. Reserves:
• Step 1: Review your reserves policy. Charities are typically advised to hold 3-6 months of operating costs in reserves, but this varies depending on the nature of your organisation.
• Step 2: Check whether your current reserve levels are sufficient. If not, develop a plan to build up your reserves over time through surplus income or fundraising.
• Step 3: Communicate your reserves policy to your stakeholders, ensuring they understand the importance of reserves in maintaining your organisation’s long-term sustainability.
5. Compliance and Governance:
• Step 1: Stay up to date with regulatory requirements from bodies like the Charity Commission. Are you meeting all filing deadlines for reports and accounts?
• Step 2: Ensure your organisation's governance structure is strong. Review trustee roles, responsibilities, and governance documents (e.g., your constitution or articles of association).
• Step 3: Conduct regular governance reviews with your board to ensure your organisation is operating efficiently and remains compliant with legal standards.

The start of the new season is a great time to ensure your financial literacy is sharp and ready for whatever comes your way. If you’re looking to refresh your skills and boost your confidence in handling your organisation's finances, now’s the time!

Ready to refresh your financial skills? Click the Contact link to book an appointment with us.