Many organisations will be facing severe financial pressures at the moment, even after taking into account the recent announcements such as the Job Retention Scheme and the Emergency Funding packages from the Arts Council. Here are three questions to help you think about whether your current ways of working financially are up to the job.
| Key question | Examples |
| Financial systems: are your financial systems fit for purpose in this context? | Can you manage a very tight cashflow and predict inflows and outflows with enough precision?
Can you control expenditure and commitments tightly enough? |
| Financial reports: are your financial reports relevant, accurate and timely in this context? | What financial information do you need to monitor actively? Aged debtors, creditors and commitments may become more important than previously. Cashflow is likely to be a key focus and you may need to move to weekly or daily cashflow forecasting.
How accurate do your key figures need to be? You may be able to accept estimates in some areas but need very accurate figures in others. It helps to choose where to focus your efforts. |
| Understanding: does everyone on the senior management team and board understand your finances? | Can everyone read your management accounts?
Does everyone understand what your financial projections are telling you? |
This download offers some advice if you cannot answer ‘yes’ to any of these questions (let us know if you would like it in a different format).
If you are encountering specific problems do post below or get in touch via email (susanjroyce[at]gmail[dot]com).
Susan & Dawn