How do you track program or project finances?

1 Define your budget and financial plan

The first step to track your program or project finances is to define your budget and financial plan, which should align with your program goals, activities, and indicators. Your budget should include all the expected income and expenses for your program or project, such as grants, donations, salaries, equipment, travel, and overheads. Your financial plan should outline how you will manage, monitor, and report on your financial performance, such as the frequency, format, and responsibility of financial reporting, the accounting system and software you will use, and the internal and external audits you will conduct.

2 Use a standard template and format

The second step to track your program or project finances is to use a standard template and format for your financial documents, such as budgets, reports, invoices, and receipts. Using a standard template and format will help you to maintain consistency, accuracy, and transparency in your financial records, as well as to facilitate communication and collaboration with your team members, partners, and donors. You can use existing templates and formats from your organization, donors, or online sources, or create your own based on your specific needs and preferences.

3 Track your income and expenses regularly

The third step to track your program or project finances is to track your income and expenses regularly, ideally on a monthly basis. Tracking your income and expenses will help you to compare your actual financial performance with your planned budget, identify any variances or discrepancies, and adjust your spending or fundraising accordingly. You can use various tools and methods to track your income and expenses, such as spreadsheets, accounting software, online platforms, or mobile apps. You should also keep all the supporting documents and evidence for your income and expenses, such as contracts, receipts, bank statements, and vouchers.

4 Review and analyze your financial data

The fourth step to track your program or project finances is to review and analyze your financial data, using various indicators and metrics, such as income and expense ratios, burn rate, cost per beneficiary, and return on investment. Reviewing and analyzing your financial data will help you to evaluate your financial efficiency and effectiveness, assess your financial risks and opportunities, and identify any areas for improvement or innovation. You should also use visual aids, such as charts, graphs, and dashboards, to present and communicate your financial data in a clear and concise way.

5 Report and share your financial results

The fifth step to track your program or project finances is to report and share your financial results with your relevant stakeholders, such as your team members, partners, donors, and beneficiaries. Reporting and sharing your financial results will help you to demonstrate your accountability and transparency, showcase your achievements and impact, and solicit feedback and support. You should follow the reporting guidelines and requirements of your stakeholders, such as the frequency, format, and content of your financial reports, and use various channels and media, such as emails, websites, social media, and newsletters, to share your financial results.

6 Learn and improve from your financial experience

The sixth and final step to track your program or project finances is to learn and improve from your financial experience, by conducting regular reviews and evaluations, collecting and incorporating feedback and lessons learned, and implementing changes and improvements. Learning and improving from your financial experience will help you to enhance your financial skills and knowledge, increase your financial sustainability and scalability, and maximize your financial value and impact. You should also celebrate and acknowledge your financial successes and challenges, and recognize and reward your financial contributors and supporters.

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?