As a small group leader, the responsibility and accountability to the last cent lie on you. Whether you are managing small groups or large business entities, money matters can get complicated quickly. This is especially true if the group members have different ideas on how to invest or spend the money. In this article, we will discuss how to manage small groups’ finances in a way that every single party remains satisfied:
Set Up a Bank Account
A bank account is a great way to keep track of funds. The process of opening and managing an account is relatively simple, so it is unreasonable for any group not to consider it.
You should have one or two people keeping track of all the money coming in and going out of your group finances. In other words, someone should be responsible for making sure bills, if present, are paid on time (and ideally before they become late), donations go where they need to go, etc.
The group representatives should also be able to quickly access any information they need about accounts through online banking tools or mobile apps. It will make things easier when keeping records or even paying taxes.
Start With a Budget
The first step in managing group finances is to create a budget based on the group’s income and expenses. It will help you understand where money is coming from, how much of it is being spent, and where there might be room for improvement.
Your budget should be flexible enough to include savings, even if your group doesn’t have much money at that particular time. It’s essential to plan so that when things get better (and they will), there will be something left over after paying bills.
The next step is reviewing the budget regularly–at least once every three months. It ensures everything works out as planned with no unexpected expenses popping up along the way.
Monitor Your Books
It’s essential to check in on your accounting software or bookkeeping system regularly to ensure everything is running smoothly. If you don’t have anything automated, you should set aside time each week to check your financials and see how everything is going. Nevertheless, it may be time to take action if you find errors or strange activity.
Have a Good Billing Strategy
Depending on the nature of your group’s business, you should have a sustainable billing system. Some groups collect money at each meeting, others take monthly donations, and some still rely on weekly offerings. It’s essential to know how much money is coming in. The information will help you know what to do when it is time to pay bills or buy supplies (or both)comes.
If there’s too much cash coming in and not enough going out, consider putting some aside for future needs. Even so, always keep in mind why you have saved up some funds. You can also propose crowded financial management to the group for more billing strategies.
Communicate Expectations Up Front
When you’re working with small groups, it’s essential to set financial expectations upfront. Make sure that everyone involved knows what is expected from them, how much money they will receive, and when it will be distributed.
Communicate frequently so the group remains on the same page and understands what happens next.
Managing Finances Can Be Simple and Easy
The most important thing in financial management is to stay organized. Make sure you have a system to track your group’s finances. It can be as simple or complicated, depending on your management skills. However, the strategies discussed above should work for your group and leave everyone without disputes at heart.