Financial Management Tools

Here are three reporting tools used for the Financial Management of your organisation.  By clicking on the link you download a spreadsheet which will help you come to understand these tools better. By rolling your cursor over the cells you will learn the components of these tools and how these reports tell the story of your organisation.

BALANCE SHEET (click here)

The Balance Sheet is a record of the financial position of the organisation at a particular date. Recording the Assets (what you own) and the Liabilities (what you owe) shows the Net Worth of the organisation. Assets - Liabilities = Net Worth.

PROFIT AND LOSS (click here)

The P&L Report shows the organisation's income and expenditure over a given period of time outlining the performance of the organisation. Recording the income and the expenditure in this way shows whether there is a surplus or a deficit.  Recording the types of income streams to the organisation and dissecting the operational costs under cost headings, we are able to get a clear picture of all the income and all the expenditures for the organisation's performance resulting in a surplus or deficit (profit or loss).  Income - Expenditure = Surplus (Deficit)

BUDGET (see links below)

The Budget is a forecast of future costs and income relevant to goals that your organisation aims to achieve in the following year (future period). The Budget enables you to monitor the organisation's income and the actual costs incurred to see if you are on track to achieving your stated targets.   It is developed from historical/internal information (e.g. historical costs) and external data (e.g. award rate, rental, insurance policy cost changes/increases) It can be developed on a month to month basis showing the forecasted operational cost and expected future income for your organisation/project. This is an effective tool which enables you to monitor your actual costs to your budget. This is called “variance analysis”. It creates the space for you to ask “What has happened?” when there is a difference between what you have planned and what you have achieved.

Here are three spreadsheet which help you understand the budget process:

Budget Development (click here)

Budget variance with the P&L  (click here)

Monthly Budget (coming soon)