How do you track library spending and revenue throughout the year?

1 Set up a budget plan

The first step to track your library spending and revenue is to set up a budget plan that aligns with your library goals, mission, and strategic plan. A budget plan is a document that outlines your expected income and expenses for the year, broken down by categories, such as salaries, collections, programs, operations, grants, donations, fees, etc. A budget plan helps you allocate your resources, prioritize your needs, and monitor your progress throughout the year. You can use a spreadsheet, a software, or a template to create your budget plan, depending on your preferences and requirements.

2 Record your transactions

The second step to track your library spending and revenue is to record your transactions regularly and accurately. Transactions are the actual income and expenses that occur during the year, such as payroll, invoices, receipts, deposits, transfers, etc. You need to record your transactions in a way that matches your budget plan categories, and that allows you to track the date, amount, source, and purpose of each transaction. You can use a ledger, a software, or a system to record your transactions, depending on your preferences and requirements.

3 Review your reports

The third step to track your library spending and revenue is to review your reports periodically and comprehensively. Reports are the summaries and analyses of your transactions that show your financial performance and position, such as income statements, balance sheets, cash flow statements, variance reports, etc. You need to review your reports at least quarterly, or more frequently if needed, to compare your actual income and expenses with your budget plan, to identify any gaps, issues, or opportunities, and to make any adjustments or corrections as necessary. You can use a spreadsheet, a software, or a tool to generate your reports, depending on your preferences and requirements.

4 Communicate your results

The fourth step to track your library spending and revenue is to communicate your results clearly and effectively. Results are the outcomes and impacts of your transactions that demonstrate your library value and accountability, such as usage statistics, customer satisfaction, community engagement, return on investment, etc. You need to communicate your results to your stakeholders, such as your board, your staff, your funders, your partners, and your patrons, to inform them of your financial situation, to highlight your achievements and challenges, and to solicit their feedback and support. You can use a presentation, a dashboard, or a story to communicate your results, depending on your preferences and requirements.

5 Update your forecast

The fifth step to track your library spending and revenue is to update your forecast regularly and realistically. A forecast is a projection of your income and expenses for the rest of the year, based on your current transactions and reports, and taking into account any changes, trends, or risks that may affect your financial performance. A forecast helps you anticipate your future financial situation, to plan ahead for any contingencies or opportunities, and to adjust your budget plan as needed. You can use a spreadsheet, a software, or a tool to update your forecast, depending on your preferences and requirements.

6 Evaluate your process

The sixth and final step to track your library spending and revenue is to evaluate your process periodically and critically. A process is the set of methods, tools, and practices that you use to track your library spending and revenue throughout the year, such as your budget plan, your transactions, your reports, your results, your forecast, etc. You need to evaluate your process at least annually, or more frequently if needed, to assess its effectiveness, efficiency, and accuracy, to identify any strengths, weaknesses, or areas for improvement, and to implement any changes or enhancements as necessary. You can use a survey, a feedback session, or a benchmarking exercise to evaluate your process, depending on your preferences and requirements.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?