Managing money is not just the job of the treasurer. Depending on the size of your organisation, working out how money is managed and who does it is the job of the trustee board, chief executive, finance officer or senior manager. They should:

• Develop a financial strategy, which should include a risk assessment of the organisation’s current and future finances, how to fund future growth, and include a question over whether there is a need to expand current financial systems
• Establish financial management systems and policies.

Once your organisation has clarified its aims, objectives and specific plans, it can draw up a budget. This is a forward plan that – by putting a price on work or services being proposed – outlines measurable income and expenditure, usually over a 12-month period. A good budget can mean the difference between an organisation’s success and failure. Types of budget include:

• Revenue budget. An estimate of total income and expenditure for the forthcoming year
• Cash-flow budget. Projections of the cash needs of the organisation over a set period of time – usually month by month
• Capital needs budget. A longer-term assessment of financial need. Usual for planning organisational growth and development – such as acquiring a new building – as part of a financial strategy.