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• Financial Managers
• Business Leaders & General Managers
• Small Business owners

1. To what extent is the organization implementing best practice financial management ?
2. Where should we focus to improve financial management in our business?
3. How do we make sure that our organisation is not at risk due to less effective financial management?

When should you use this Analysis

• When there is a concern that financial management in the organisation is not as rigorous as it could be.
• When a business finds that it cannot account for all of its income and expenditure.
• When the organisation could be at risk due to poor financial controls.
• When leaders seek to improve financial management in the business.

Areas of Analysis
Basic financial systems
Considers how robust basic financial systems such as budgetting, cashflow and account codes are within the organisation.

Internal controls
Businesses use various internal controls to make sure that funds are used properly and that they can achieve their objectives. This list sets out a selection of controls. It is not a complete list – there are bound to be other controls which are very important to the smooth running of your organisation. But, this list includes a control for all of the key areas of financial management.

Financial planning
Financial planning is critical to the success of any business. In this section, the effectiveness of budgeting and cashflow forecasting in your business is considered.

Financial reporting
Directors and managers rely on financial reports to understand an organisation's financial position. In this section, the accuracy and value of financial reporting in your business is assessed. Managers need accurate internal reports to know where money has been spent and whether they have enough funds to pay the salaries and bills in the coming months. As a minimum, the monthly financial statements should include a report of all income and expenditure made during the month and the amount of money held in cash and the bank. Other important financial reports include: a report of actual expenditure compared to the budget; a cashflow forecast; and a report showing the use of funds received.

Staff management
Good financial management relies on good staff. Staff members need to have the right skills and support to carry out their responsibilities. This means that project or programme managers also need to know the key principles of financial management. This will enable them to manage finance people more effectively.