This document discusses financial management for an organization. It covers several key points: 1. The finance subsystem is important as it deals with revenue generation and financial management, including planning budgets, accounting, bookkeeping, and cash flow management. 2. The topics to be learned include general controls, accounting cycles, cash and bank controls, documentation procedures, and using accounting software. 3. Financial reports are an important part of financial management and ensuring accountability.

1. FINANCIAL
MANAGEMENT

2. FINANCE
Finance is an important element within any organization
even AIESEC, to ensure we are able to utilize the
financial resources available to support more activities
to be facilitated by every level or the organization with
the purpose providing young people with a platform to
explore and develop their leadership potential.

3.
The Finance Subsystem is of significant importance in
the organization since it mainly deals with
1. Revenue generation
2. Financial management
The basics of financial management include planning
and designing a budget, ongoing accounting and
bookkeeping, and managing cash flow.

4. What we’re gonna learn?
1. General Control
2. Accounting Cycle, Chart of Account
3. Cash and Bank Control (Documentation
Procedure)
4. Reports
5. Accrual Basis
6. Learn to Use Quickbooks
7. Governance and Accountability

5. General Accounting Controls
• Establish clear lines of authority (Segregation of Duties)
• Have written policies and procedures for the activities of the body to
enhance controls. (Documentation Procedure)
• All forms, cheques , receipts, and tickets should be pre-numbered. This
will facilitate audit trail
• Monthly or quarterly reports on all activities should be prepared and
submitted for review.
• Internal or external audit.
• Internal checks by the management
• It is always advisable to prepare an annual budget which is guide on the
various income and expense targets.
Compare each control
for all LCs

6. Various Components of Accounting
Cycle
O Income
O Expenses
O Fixed Assets
O Accounts payable
O Accounts receivable
O Cash and Bank
O Donations
O Reports
Open your
Chart of
Accounts! :
D

7. Cash
&
Bank
O Strict documented controls/ procedure must be in place
O Daily/weekly cash reports and reconciliations must be
prepared and reviewed
O Cash book must be updated on an daily basis
O Monthly bank reconciliations must be prepared
O Proper records for both cash and bank must be maintained.
O Withdrawals (penarikan) from both cash and bank must be
properly documented and authorized by approved signatories
O Donated funds must be maintained in a separate account for
ease of accounting to the donor

8. Documentation Procedure
O Payment Voucher
O Receipt of Payment
O Claims without Receipt
O Expense Report
O Cash Advance
O Cash Voucher
Finance Cash
Flow
Other
Functional
Cash Flow

9. Reports
O The following reports are important:
O Income & Expenditure statement
O Balance sheet
O Cash flow statement
O Variance analysis (Budget Realization)
O Cash book
O Always compare the performance of the
organization with the annual budget

10. Governance & Accountability
O Review of the budget
O Audits
O BoA meetings
O LCEB Meeting
O Controlling
O Reporting

11. Thank you J