New: 12 best things for your financial management manual

financial management

Finance is the easiest and simplest business process to handle, if you have financial management operations manual. no matter what kind of business you’re in. But it’s often the least talked about and least important part of any business. So why? Our fears about money often play a role in this.

Knowledge is the best way to deal with fear. It’s not a way to avoid things. AT FIRST, clients I work with try their best not to look at their numbers or pay attention to them in the hope that it will go away. This is not a good strategy. But if we don’t know where you are now, we can’t help.

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This is where having a financial management process and writing it down in a financial management operations manual can be a huge help both you as a business owner and your business.

I came up with a way to help people with their finances because I was probably way behind where you are now. There are some simple systems that you can learn about and then use to build your financial management process. Then, you put that knowledge into a financial management operations manual so that your financial records are kept in the same way so that you can get the information you need.

There are also good financial people on my team, and by the way. But they are even better because they follow a system that I set up for them to follow. You can make sure that your data is recorded consistently by doing this. It also makes sure that I can keep an eye on my business because I have all the correct reports on hand at the right time.

Financial Management

Financial management process and operations manual, here’s a quick high-level checklist of what you need to do.


Indicate who’s responsible for your money in your financial management operations manual. Make sure you know the different jobs that people who do the numbers in your business play. Make sure you understand the difference between a bookkeeper and an accountant or financial manager and how each can help your business in the most cost-effective way possible. Then write job descriptions that show who is in charge of what and how they work together (or you can purchase complete job descriptions for your bookkeeper and financial controller at our website).

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Work out what financial reports you need to keep an eye on your business, and then demand that you get them every week, fortnight, or month. Operations manual: Outline who is responsible for delivering these (this should be in job descriptions, too) and how often. This should be in the manual as well. These reports should be the foundation for all of your business moves.


financial management

It’s a good idea to talk to your accountant or bookkeeper about what kind of accounting system they think is best for you. But don’t just take this information at face value because it might not be accurate. Over time, it costs a lot to buy an accounting system. Make sure you know how much it will cost to get started with any recommended method, as well as how much it will cost to keep the system up to date.

Also, think about how many bookkeepers have been trained in this system. If no one can figure out how to use it, there is no point in buying an accounting system that costs as little as chips. If you hire a specialized bookkeeper, you’ll have to pay more money, in the long run, to switch to a less technical system.


This is the fourth thing you should do before the end of each financial year. It would help if you made a profit and loss projection of what you want your business to be doing. This enables you to think about “what if” scenarios. It’s always better to know whether something will financially work before you embark on it!


In most businesses, budgets are the most well-known thing, but they aren’t used very often. You should have a budget for the whole year that comes from your Profit and Loss Projection and is broken down into different parts of your business. It also helps people in your business (like your bookkeeper) figure out how much money they can spend and how much they can’t. It’s also an idea to ask your bookkeeper to enter the budget into your accounting system so that you can incorporate your budget into your Projected Versus Actual reports.

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 I often get asked why a business is making money, but there’s never any money to spend. This is called cash flow analysis. Cash flow and profit are two different things. This is why this is the case. Each month at the very least, you should ask for a cash flow analysis. It would be better to ask for one every week. Make sure you have enough money in your bank to pay people when they owe you money. This also lets you go after those who owe you money faster.


To control costs in your business, you should have a purchasing system in place. Make sure that no money is spent in your business without a purchase order, and write this into your company policy. Every bookkeeper I’ve ever known balks at this idea because it’s extra work for them. That doesn’t mean that it doesn’t keep your money at the end of the day. With this system in place, you won’t have to pay for things that an employee has done for you.


You have to pay your bills. When you write your financial management operations manual, write down and record how your accounts are produced, as well as how and when they are paid. Also include any regular payments, like direct debits, and other ways to spend money, like store cards or credit cards. Another thing you can do is have your petty cash system and the expense reimbursement systems for your employees and your boss.


Sometimes, business owners think that a bookkeeper should figure out what to do in accounts receivable. This isn’t always true. But don’t think for a second that your common sense is the same as your employees’ common sense! Ensure that your financial management operations manual includes an overview of the system for dispensing goods and services, your credit terms, how to raise invoices, and how to follow up on outstanding payments.

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People should also include phone scripts for debt collection in their operations manual so that there is no question about how to deal with clients, I tell them. Getting money from a good customer isn’t the worst thing that can bother a business owner. The same thing goes for an accounts person who can’t get a specific payment date.


It’s essential to make sure that your financial management operations manual includes an outline of bank accounts, including those for GST and credit cards, as well as who those cards are given out to. Also, give a brief overview of online payment systems. However, don’t put any information on your PINs. What should talk about this in person, not written down?


In your financial management operations manual, you should also include things like a Fixed Asset Register, Insurances, Depreciation Registers, and End of Year Procedures, as well as other things. This should be in your financial management operations manual, even though your accountant usually takes care of this at the end of the year. Your bookkeeper and financial controller should be able to figure out what steps to take to get the information ready for your accountant.


Your money records are the essential records in your business. Ensure that your bookkeeper saves your records to a device stored externally on the computer. This information should be included in your financial management operations manual so that you can back up to this thing.

Finally, A lot of time and patience are needed to write down a process for managing money and put it in a manual for employees to read. In general, you should give yourself time to gather all the information you need to make a rough draft manual, then time to make it better.

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