Financial Management

1
Financial Management

• Part II
• Practical Book keeping Practices and Budget
  Planning

2
Content of Presentation

• Book keeping Process
• Transaction Codes
• Cash Flow Book / Ledger
• Bank Account Book
• Debt Book
• Account Receivable Book
• Budget Planning

3
Bookkeeping Process
4
Transaction Codes

• It is important to have transaction codes because
  it facilitates transaction categorizing and
  reporting
• The codes are mainly used in the ledger / cash
  flow book
• Codes can be developed according to the needs and
  the type of transactions usually carried out

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Transaction Codes
6
Ledger

• Only records cash related transactions
• Non cash transactions recorded in a different
  book
• Every cash transaction must be accompanied with
  proof of payment / receipt
• Use codes to categorise transactions

7
Bank Account Book

• Bank Account Book reflects the transactions made
  concerning the bank account that should also be
  reflected in the original Account Book
• Format can be the same as the original Account
  Book
• The importance of this book is to always maintain
  an overview of the status of funds being held in
  the bank

8
Debt Book

• It is used if the MHP management has debts
• Every instalment will be deducted from the book
  and add cost in the ledger
• Every debt will increase value in the debt book

9
Account Receivable Book

• In case there is outstanding income then this
  income should be recorded in the account
  receivable book
• If the pending income is paid, the transaction
  will be deducted from the account receivable book
  and added to the cash in the ledger

10
Budget Planning

• Considerations
• Financial Conditions
• Bank Account Position
• Cash in Hand
• Debts and Account Receivables
• Action Priorities
• Capacity (non financial)
• Possible Donation

11
Budget PlanningIncome Plan

• Routine income (e.g. monthly fee)
• Expected income
• Addition of consumers (connection fee)
• New business
• Donation
• Debts
• Bank
• Interest

12
Budget PlanningExpenses Plan

• Routine expenses (e.g. wages, routine repairs,
  instalments)
• Experiences and historical records of other
  routine expenses
• Planned budget based on activity planning
• Emergency budget