An introduction to managing your finances

Why is financial management important?

Good financial management is crucial to your success, survival and sustainability.

Whatever the size of your organisation financial management will impact on the decisions you make. Financial management can provide direction and accountability, it can also help you evaluate resources and deliver information that can be used in planning, assessing impact and reporting.

Managing financial resources is about getting the most from the resources you have available. Rather than being seen as a separate function - just doing the books - the finance function should be integrated into all aspects of your organisation’s operations, from managing project budgets to gathering information for strategic decision-making.

Strategy and planning

You can only achieve effective financial management if you have a sound organisational plan. A plan in this context means having set objectives and having agreed, developed and evaluated the policies, strategies, tactics and actions to achieve these objectives.

Sound financial management will involve you in long-term strategic planning and short-term operations planning. This financial planning should become part of your organisation's ongoing planning process.

Your financial strategy will enable your organisation to assess the financial needs and sources of support required to meet your objectives and fulfil your mission, whilst also planning for continued growth.

Find out more

This section explains the basics of financial management, along with guides and tools to keep your organisation on track.