Financial management is not just about keeping accounting records. It is an important part of programmer management and must not be seen as a separate activity left to finance staff.
This will involve:
Managing scarce resources
The financial management process
– Plan, Do, Review – takes place on a continuous basis.
When an organization starts up, it sets its objectives and planned activities. The next step is to prepare a financial plan for the costs involved in undertaking the activities and where to obtain funds.
Having obtained the funds, the programmer of activities is implemented to achieve the goals set out in the planning stage.
The actual situation is compared with the original plans. Managers can then decide if the organization is on target to achieve its objectives within agreed time scales and budget. The learning from the review stage is then taken forward to the next planning phase, and so on.