Golden Rules of Finance Administration

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[edit] Rule No. 1: Keep all your receipts.

If you don´t have a receipt for an item, you cannot get the money for it. Save it like you save your precious goods - not in a box, but collected and sorted - see here, how: Administrating expenditures.

[edit] Rule No. 2: Convert sums from foreign currencies with one exchange rate.

Only use one exchange rate. Otherwise you might be confused by the different rates.

[edit] Rule No 3: Plan costs and possible ways of financing your activities.

A Budget and financing plan is a good way to have the control over your finances, which also shows you whether you have or haven’t thought about everything. See here some guding questions for budget planning.

[edit] Rule no. 4: Clarify, how the transfer of money can take place.

  • When you need the money for your projects
  • How you can get the money - in cash, bank transfer, in advance or later.

[edit] Rule no. 5: Order and save.

Fill out lists of receipts. They give an overview over every single expenditure.

[edit] Rule No. 6: Crown the financial headmaster of your team.

Financial Administration needs clear responsibilities. The person should have the authority to clarify all things with donors and supporters. And in the same time the person should have the right to set deadlines for your team.

[edit] Rule No. 7: Talk back if you have any questions or changes in your budget.

However, in most cases you cannot spent more than the sum that was agreed on in your budget plan. But, in advance things might easier be clarified. Donors know, that activists are mostly not keen on accounting. Therefore they see questions as an indicator for professionalism.

[edit] Rule No. 8: Take stock.

When you´ve sticked all the receipts on paper sheets and filled out the lists of receipts, its time for the last thing: Revenue and expenditures overview. At the end you see a clear result of your work. Finances are one of the few things in project life, where a zero is a success.

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