Financial Management Overview
What is Financial Management?
Financial management is about understanding and responsibly managing the money your organisation receives and spends. It includes planning how to fund activities, keeping accurate records, proper management of assets, accountability reporting on grants, reporting annual accounts, and meeting legal obligations such as audits, reviews and annual returns. For smaller organisations it doesn’t need to be complicated – what matters most is clarity and transparency in how funds are used.
Why is Financial Management Important?
Good financial management is essential for organisational sustainability. It keeps your board and team informed so you can make wise decisions, plan for the future, and demonstrate accountability to funders, members, and communities you serve. Being on top of your finances also builds trust and confidence with everyone who works with or supports your organisation.
Useful Websites & Reading – General Information
Here are helpful places to learn more or get further guidance:
Introduction to Financial Management – A plain‑language overview of core financial concepts and what good management looks like – CommunityNet Aotearoa
NOTE: CommunityNet Aotearoa is a mine of information about a wide range of topics to help charities and not-for-profits.
Nonprofit Finance: 12 Golden Rules – including budgeting, diverse funding sources, and interdependence – Propel Nonprofits
Video: Intro to Nonprofit Finance – Lecture on financial management including how to read a balance sheet – Praxis Consulting Group
Useful Websites & Reading – Specific Information
Charities Reporting Standards – Find out your reporting tier and what’s required for annual accounts and performance reporting – Charities Services
Audit and Review Requirements – Check if you need to have your accounts audited, which is costly, or reviewed (a lesser financial check) – Charities Services
Accounting Reporting Standards – The type of reporting organisations are required to complete is determined by the size of the organisation – External Reporting Board
CommunityNet Aotearoa Guides:
- Financial record keeping
- Financial planning
- How to read financial statements
- Statistics that matter – financial summary reporting
- Information on tax responsibilities
- Financial reporting
- Computerised accounting systems
Useful Resources
Free training: Finances Series – SociaLink runs free courses on various elements of financial management throughout the year – SociaLink
Free financial advice – SociaLink’s Financial Advisor can give you one-on-one advice and support to ensure compliance with financial requirements, creating and maintaining accurate financial reporting, and best practice suggestions – SociaLink
Community Accounting Programme – Free accounting assistance for small community groups, including charitable trusts, incorporated societies and registered charities across NZ with senior accountancy students from Massey University – Auckland North Community & Development (ANCAD)