Mastering Money: Financial Success for Youth-Led Organizations

In our society today, the question of financial responsibility has since been and will continue to exist. “Pesa hurun dunia” This is a phrase that basically describes finance as a niche to life. Governments, agencies, corporations and non-governmental organizations need funds to run projects and offer services.? Unfortunately, we have either experienced, heard of or witnessed corruption cases or mismanagement of funds.??

One of our guiding principles as Youth and Urbanism is openness and accountability. We extend this to all our work including the financial aspect and funds we receive. This has given us smooth and transitional growth since conception of the organization.??

In partnership with Hivos-People Unlimited and other stakeholders we were able to explore standards of financial management and best practices.?

How can organizations then manage their finances??A few tips for youth led organization.?

1. Bank account management?

Organizations should and must have bank accounts under the name of the organization and not individuals or individuals names. It is important to separate and distinguish personal and organizational finances. This is a legal compliance that enhances credibility and professionalism among stakeholders.??

2. Funds management?

This is guided by financial compliance; laws, regulations and standards related to financial activities within the organization. This may include:?

• Funds being used exclusively on intended and approved projects??
• Proper authorization of all expenditures??
• Proper utilization of funds??
• Preparing and keeping records of financial statements?
• Tax compliance applicable to their jurisdictions?

By adhering to financial laws and regulations, organizations will have the benefit of enjoying security from risks in case of legal issues.??

3. Financial accounting system?

• Make use of an appropriate accounting package or other software(s) for recording accounting transactions. The use of spreadsheets for accounting is not recommended.?

Having a proper financial accounting system helps maintain accurate financial records. It provides a clear view of the organization’s income, expenses and general cash-flows.? This will therefore raise an alarm in case of any discrepancies.??

4. Financial reporting?

Just like feedback is required once a message is received, financial reporting is crucial to the relevant stakeholders. It will provide the organization's financial performance which can be used to inform decision-making. Furthermore, it provides an avenue for transparency and accountability.?

These are just but a few. By?effectively and efficiently managing bank accounts and funds, adopting efficient financial accounting system and providing accurate and transparent financial reports, organizations will be able to manage their finances, strengthening their performance enabling them to achieve their objectives and goals.?

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Written by,?

Ruth Akoule?

?Head of PMERL?

Youth and Urbanism?