If your small business is a corporation, you would do well to find someone experienced in financial management and encourage them to be your board treasurer (your board chair has this responsibility to find someone suitable, as well). Sharing stories about money, financial loss and recovery, and inspiring rags to riches triumphs can help you stay motivated on your path to financial freedom. Budgeting is not a simple process that is developed and left as such, but it is an ongoing system that needs monitoring, controlling, recording, reporting and many more while following the organisation’s legal and regulatory requirements. Managing financial resources effectively and efficiently is a standard for financial and performance management and this means, reasonable value for money.
Efficiency in managing financial resources means that the business is achieving maximum performance with minimum input and with very little waste. For organisations depending on their mode of operation and dependence on government and other systems, the management of budget needs to adhere to legal, regulatory and organisational requirements. Depending on the plan, the type of organisation and taking into account various facts involved, you should be able to choose the right type of budgetary system.
However there are some drawbacks in using this system as they follow the top-down budgeting process where budget is imposed by higher management. The budget is prepared by the top management and is passed on with authority to the employees in the organisation. This is a type of budgeting system where any anticipation in increase or decrease in income for the business is taken into account while developing the budget. Occasional visits of the inspectors from the ministry of education help to keep the school managers on their toes and this is very important to effective school management.
Staff recruitment: Management should ensure recruitment of competent staff both teaching and non-teaching to perform their assignments under the guidance and supervision of superior officers. It is only with good relationship between management and parents that financial assistance can be given by the latter. Management should be able to source for money through special programmes or other school activities designed for that purpose from time to time.
The chief controller within the system is the proprietor himself, assisted by the principals and other staff including the teaching and non-teaching staff. Other agencies of education particularly, the parents, religious bodies and the community exercise a lot of indirect control on the school system and they all combine to make the system workable and productive. Money management issue that you can discus with your child could be ways to earn extra income, how to save, where to save, setting realistic goals, and budgeting. The need to know about financial issues equips them with basic knowledge and gives them an insight to our current financial challenges.