Financial management after COVID-19
Gurbinder Singh, Director of Leicester-based accountants BGS Accounting, provides guidance for local charities and community groups on how to manage their finances once the COVID-19 lockdown passes.
Nine tips for financial management
1) Have 3-6 months cash surplus. Cash is king, and it is important to have enough cash to make sure you can carry on as business as normal for at least 3 months.
2) Consider what your short, medium and long-term priorities are, and see if any projects can be stopped/delayed in order to focus on essential spending.
3) Use cloud-based accountancy package which enables you to track information on the finances if the businesses in real time. This is vitally important and will help you make business decisions in real time.
4) Track performance regularly:
a. Monthly Management Accounts
b. Set Budget/Forecast
c. Compare to previous period/prior year/Budget/Forecast
5) Introduce regular cash forecasting:
a. Monthly/Weekly
b. Know all your income and outgoings
6) Streamline your business processes:
a. Improve processes and procedures
b. Improve efficiencies
7) Keep on-top of people who owe/ have pledged money:
a. Ask for expected payment dates to help cash flow forecasting
8) Keep communicating with people you owe money to. Let them know the situation and when you are expecting to pay them.
9) Get a pro-active Accountant that can help you with all the above and give you real time advice.
Support to get to the other side of the pandemic
Gurbinder has also provided a guide to financial management during the COVID-19 lockdown.
You can find out more about BGS Accounting on their website.
Get support from VAL
If you are a charity or community group and you need additional support to deliver services during the pandemic, VAL is here to help.
We can offer advice on issues that affect charities, from fundraising to proper governance and managing volunteers.
You get can in touch via:
helpline@valonline.org.uk
0116 257 5050