Many associations, especially those in the start-up phase, may lack expertise in accounting or bookkeeping. Consequently, they often encounter avoidable accounting errors. Here are some fundamental accounting principles that associations need to understand before initiating their operations. Maintain a strict separation between business and personal funds One fundamental [...]
Effective financial management combines organization, objectives, tasks, and renewed processes by Board and management, as well as the financial stability and profits of the association. Most association financial management plans can be broken down into four elements. These four elements include planning, controlling, organizing and directing, and decision-making. With [...]
It’s a New Year with new opportunities for your association. One of the key elements of a successful association is understanding your current budgets and cashflows. Here are some tips on how to effectively conduct a financial audit for your association. An Effective Financial Audit Having the capability to [...]
Budgets and cashflow analysis are important management tools to allow an association to properly manage their performance, allowing them to plan and make informed decisions relating to planning, resource allocations and funding requirements. Preparing budgets and cashflow forecasts can give you a more realistic measure of where your association [...]
What is a Reserve Fund? Reserve Funds are liquid assets that associations set aside for anticipated future expenditures, or to serve as a cushion against any unplanned expenses. Five Best Practices for Managing your Restricted (Reserve) Funds Use the Class tracking functionality in your accounting software If your association [...]
Not-for-profit accounting is a unique process by which not-for-profit organizations plan, record, and report their finances to a committee or Board of Directors. Associations are a type of not-for-profit organization, and so the focus is on the accountability aspect of the accounting. They follow a set of standards that [...]
