Helping NGOs do more with their money

Financial monitoring

Why do we need financial reports?

Financial reports provide a summary of your income and expenditure. They allow you (and other stakeholders) to monitor your financial position. For instance, they help you tell if you have enough money to pay salaries at the end of the month, complete a project or fund your plans for next year.

Financial reports have to be timely, accurate and relevant.

They also have to be easy to read. So it is always important to talk to users about what sort of reports they want and find easy to use. It may also be useful to provide users with training on how to read financial reports.

NGOs prepare financial reports for different people including: managers, trustees, beneficiaries, donors and the government. Using these reports,

Which reports?

As there are many different users of financial reports – internal and external stakeholders – we need different kinds of reports for different users.

It is important to set up your accounting systems (especially accounting codes) to meet your various reporting needs. Reporting to donors can be complicated if you have to use their own specific formats - see the receiving funds section in Mango's Guide for advice.

Resources

Rudi reports to his donor  – an example of everyday reporting.

Mango's course handbook – has a whole chapter on financial reports including annual financial statements, budget monitoring reports and donor reports.

Mango's accounting pack – includes reports for managers.

Reporting to beneficiaries – practical notes on financial reporting to beneficiaries.

 

 

Want to learn more?

Join Mango’s Budget monitoring essentials eWorkshop or ask about the one-day Financial reporting essentials course offered as an inhouse event.

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