For a mission oriented organization money is a means and not an end itself. One of the key departments in religious institutions is Finance Department. Good Book-keeper will strengthen the spokes of the wheel-institution. It is very important to have a good book keeper.
In the Gospel (LK.16) the Master called the steward and asked him to render an account of his stewardship – his lifestyles. Stewardship demands accountability
- Stewardship is accountability – let us look at the stewardship from the point of Gospel way of life – which includes a Vision & Mission of our institute.
- Our accountability should be clear, should be understood by the other, should be relevant and a free flow of information from top to the grass root and vice versa on various levels of the organization.
- Basic honesty which is important for religious life, this demands
- To be credible – fully aware of the responsibility
- To be accountable
- To be transparent
- To use money for right purpose as well as to put it to the maximum use
Financial management is understood by many as accounting. It is true that it is an important function, yet it is merely one of several functions in Financial Management system.
It has several components:
- Planning and Budgeting
- Reporting and Monitoring
- Financial control system
- Compliance of law, rules and regulations
- Audit and external reviews
Planning and Budgeting
An ounce of planning is equal to pound of doing. The finance of the organization can be healthy only if the same is utilized for the planned activities of the organization to achieve the objectives and translate the vision into day today activities.
Financial planning is an integral part of the total planning. Any mission however noble it may be will suffer for want of financial support. A healthy economy is just as it is for a corporate enterprise. A finance policy has to be integrated with the mission of our organization and both have to go hand in hand for the successful fulfillment of the Mission.
Normally every organization has to have long term planning in order to provide security for the continuity of the mission. This demands a foresight and wisdom. It is therefore healthy practice to make a long term plan for a period of 5 to 10 years – while long term planning is essential, it is equally important to plan for a short term in order to carry out the activities, which will help to accomplish the mission.