In the accounting management of social structures, the establishment's financial manager plays a crucial role in ensuring their smooth running. By implementing good accounting practices, you are working for the well-being of our society's most vulnerable individuals and providing them with assistance. Not only can you ensure the proper and responsible use of resources to gain credibility with stakeholders, but you can also secure the long-term future of your social center by minimizing the risk of budget deficits or financial crises.
Here are seven best practices to follow when it comes to accounting in social establishments.
Keep rigorous accounts
The first step is to set up and maintain an accurate accounting system, with clear procedures and appropriate tools for recording, tracking and analyzing your transactions. Detailed records must be kept of all financial transactions: income, expenses, grants, donations, payments to suppliers, etc., usually using specialized accounting software.
Use the right accounting tool
Financial management systems such as Anytime's online accounts for associations are specially designed to meet the needs of your social institution. This type of tool automates many administrative and accounting tasks, reducing data entry and reporting errors and saving valuable time.
Separate tasks
It's best to separate administrative and accounting tasks between your staff to reduce the risk of error and fraud. For example, the person responsible for collecting funds should not be the same as the person responsible for recording transactions or preparing financial statements. This segregation of duties ensures cross-checking and reinforces the integrity of your accounting process.
Also, the separation of the personal finances of supervisors and referents from the finances of the social establishment prevents conflicts of interest. Individual credit cards can be distributed to the people concerned, enabling them to set a ceiling and track spending in real time.
Evaluate and adjust regularly
Perform internal and external spot checks to guarantee the reliability of your data. Accounting management should not be static. It' s important to regularly evaluate the processes and policies in place, identify areas for improvement and make any necessary adjustments. This ongoing assessment will help you correct errors at an early stage and combat financial fraud.
Set a realistic budget
Drawing up a sound budget is fundamental to planning and controlling your social center's expenditure. A good budget must realistically take into account expected revenues, fixed and variable costs, and long-term investment needs.
Next, you'll need to analyze your financial performance by comparing actual results with planned budgets. This analysis enables you to identify discrepancies and take corrective action if necessary. Regular financial monitoring also helps you to anticipate potential problems and adjust your operational plans accordingly.
Communicate with stakeholders
Center directors, employees and external stakeholders should, in principle, be regularly informed about the financial situation of their social center. Transparent and open communication strengthens everyone's trust and commitment to the mission of your social center. This can be achieved through the regular publication of financial reports, meetings with funders, as well as independent external audits to ensure the veracity of financial information.
As a facility manager, you have a responsibility to your beneficiaries, your donors and society as a whole. Rigorous accounting management helps to demonstrate this responsibility by ensuring appropriate use of resources and transparent reporting.
Train your staff
It's essential to provide your staff with regular training on the basics of accounting management, as well as on your social center's specific policies and procedures. Well-trained staff are better equipped to comply with accounting standards and contribute to effective financial management.