Budgeting and Financial Management for Associations: A Comprehensive Guide, Slides of Management Fundamentals

Download Budgeting and Financial Management for Associations: A Comprehensive Guide and more Slides Management Fundamentals in PDF only on Docsity! Budgeting Need an Annual Budget Budget for conferences, meetings, products, and services so that you now how they perform and what price to set. Be realistic. Be especially conservative in income estimates. Council should be aware of and enforce the budget! Docsity.com Budgeting When budgeting: ¢ Consider all expenses. * Get input from Council and Committees ¢ Add buffers for contigencies * Conservative estimates > consider recession or other events that affect the economy. ® Docsity.com Internal Controls  • Need checks and balances when managing the associations  money.  • Makes sure that the process of reviewing bills and writing  checks is reviewed by more than one person.  • ABSA   • Accountant writes checks  • Treasurer and Executive review all checks and expenses  and sign off  • Treasurer signs most checks      Docsity.com Balance Sheet Net Assets = Assets — Liabilities Assets: Cash, investments, property, equipment Liabilities: accounts payable, deferred revenue, prepaid, mortgage notes, debt Docsity.com Sample Balance Sheet  Assets  Checking   $        50,000.00   Money Market   $        15,000.00   Certificates of Deposit   $        25,000.00   Equipment   $           2,000.00   Total Assets  $        92,000.00   Liabilities  Deferred Revenue   $           1,000.00   Accounts Payable   $           2,000.00   Total Liabilities  $           3,000.00   Net Assets  $        89,000.00   Docsity.com