2.8 Managing Finances

Parent section:

Overview

Managing the finances of a VOPE in a transparent and responsible manner is imperative. This section covers some of the financial management issues that VOPEs would need to address.

According to the Business Dictionary (http://www.businessdictionary.com/definition/financial-management.html#ixzz32Fl435yz), Financial Management is defined as the planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization. The money or funds entrusted to your VOPE should be managed in such a manner as to efficiently and effectively support the objectives of the VOPE. The Financial Management function is specialized and is usually the responsibility of the treasurer of your VOPE with the assistance of a bookkeeper or accountant and auditor.

The following Financial Management topics are discussed in this section:

2.8.1 Registering the VOPE with Revenue Services
2.8.2 Setting up financial policies and procedures
2.8.3 Developing a budget for the VOPE
2.8.4 Managing accounting and auditing for the VOPE
2.8.5 Producing financial reports for donors, and other interested persons
2.8.6 Receiving Payments
2.8.7 Managing Members’ Registration Fees
2.8.8 Purchasing
2.8.9 Tips for running finances efficiently and transparently

2.8.7 Managing Members’ Registration Fees

Once your VOPE receives membership fees, it is vital to allocate the payment to the correct member account and ensure the member is flagged as an active member and gains access to all of the member benefits. The payment transaction details, such as payment date and amount should be stored on your database to ensure a membership renewal notice is created when the membership of this particular member expires.

2.8.8 Handling Purchasing

The procurement process involves managing a variety of activities, including ordering, receipt, review, approval of items from suppliers, endorsing supplier payments and managing suppliers against their contracts. Although supplier relationships might be less important for a VOPE, procurement procedures should specify how you manage these relationships, to ensure a high level of service is received. It is advisable to start off with developing and streamlining the procedures and policies relating to purchases in the VOPE’s Financial Management policies and procedures document.

Keywords:

Finances, Budget, Purchase, Payments, Policy, Financial Control