Sunday, 24 April 2022

Preparation of financial statements for the project



 


 

THEORETICALLY, IF YOU HAVE SET UP ALL THE PROCESSES ON THE PROJECT IN ACCORDANCE WITH THE PREVIOUS SECTIONS OF THIS ONLINE COURSE, THEN THE PREPARATION OF FINANCIAL STATEMENTS SHOULD NOT BE DIFFICULT FOR YOU!


However, in order not to miss anything, let's go through the main points that are worth paying attention to, and which will help to prepare an accurate, effective and timely financial report on the project.

Revenue Tracking


data from your system EPOS or ticketing systems that display sales

letters confirming the grants for this project, indicating the expected dates of disbursement of these funds letters confirming the provision of sponsorship, and detailed information on the procedure and timing of payments to your organization information confirming the amount of donations and the fact of their receipt


a consolidated statement, i.e., a cash flow statement containing information relevant to that phase of the project (e.g., a comparison of planned and achieved results)



Provide up-to-date summary information on expenditures


paper invoices, or invoices received by e-mail, for all expenses incurred within the framework of the project. If one invoice was issued for the work performed, which also includes other projects, then you must specify the information that relates specifically to your project.


audit trail showing confirmation of expenses incurred by the respective manager


document dossier demonstrating how indirect project costs are processed, how they are calculated, verified and confirmed


Provision of information on unforeseen situations, unforeseen income/expenses


demonstration of how these expenditures were reconciled, why they were needed and how they were allocated within the contingency budget


Contents of dossier documents in readiness for audit



files should be organized in chronological order and grouped by major revenue and expenditure items; paper/printed copies of all invoices, receipts, payment confirmations and contracts must be available


if sponsors require you to draw up documents according to certain templates, make sure that they are drawn up in this way!



So now you can:

  • maintain a reliable dossier of financial documents;
  • see how much of the planned income you managed to provide;
  • issue receipts or confirmations of compliance with expenses;
  • keep records for verification by the donor.


This course provides basic budgeting information for a project. It will not make you an expert in an instant, it gives a general idea of the points that you should pay attention to.


In fact, if you haven't previously budgeted for large projects, you might be better off starting to lead small projects where the risks are not as great as the chances are that things can go wrong. Or, if you still choose to work with a large project, then it is better to take a specialist with good experience in financial management as an assistant.


This experience will prepare you to work with larger and more complex projects.


As someone who's been budgeting for decades, I know there are aspects where I have a lot of experience and know what to do to get things done. 

 

 

But at the same time, there are new kinds of projects that I've never come across before in my work. If I have to work with something new, I have every chance of missing some things. therefore, I increase the reserve budget slightly in this case. 

 

It is also worth considering the "goodwill" of customers and partners - whether they will be ready in case of unforeseen situations to find time and resources to correct the situation. This is ideal. In life, everything is much more prosaic, so you need to prepare for both the worst scenario and the best!

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