Managing Your Finances
Effectively managing finances is crucial to the success of any Enactus project. For Enactus teams, tracking cash flows, keeping precise records, and allocating funds wisely ensures that each project has the resources it needs to thrive. Below are key areas to help your team stay on top of finances and make the most of your funding.
Recording Cash Flows
Clear and thorough record-kepping is essential to avoid financial confusion and maintain a trasparent account of team finances.
Track Every Transaction
Each transaction, no matter how small, should be recorded to maintain a complete record of all incoming and outgoing funds. This allows for easy tracking of expenses and income over time and ensures that nothing is overlooked.
Use a Cash Flow Statement
A simple cash flow statement provides an overview of money coming in and out. Regularly updating this document will help your team manage funds more effectively and plan for any upcoming needs.
Designate a Team Treasurer
Having a dedicated team member oversee financial records can streamline the process. The treasurer should monitor cash flows, organize records, and regularly update the team.
Here are some example templates you can use to track your cashflow:
Monthly Cash Flow Overview - This sheet can be used to provide an overview of all income and expenses each month across all projects.
| Month | Starting Balance | Income | Expenses | Ending Balance |
|---|---|---|---|---|
| January | ||||
| February | ||||
| March | ||||
| Total |
2. A Project Specific Cash Flow Sheet - This sheet tracks all the cash flow related to each project, including funding received and expenses paid, to ensure funds are allocated properly.
| Date | Description | Amount |
|---|---|---|
| Income | ||
| 2024-10-01 | Funding Grant | $1,000 |
| 2024-10-05 | Sponsorship | $500 |
| Expenses | ||
| 2024-10-10 | Materials | -$200 |
| 2024-10-15 | Marketing | -$150 |
3. A Consolidated Summary -
| Project Name | Total Income | Total Expenses | Net Balance |
|---|---|---|---|
| Project 1 | |||
| Project 2 | |||
| Total |
Allocating Project-Specific Funding
Funding for specific projects must be allocated correctly to make sure that funds are used as intended and tracked for reporting purposes.
Budgeting by Project
When receiving funds earmarked for a specific project, create a dedicated budget that outlines all intended expenses for that project. Use this to monitor spending and adjust as needed.Track Expenditures per Project
Maintain separate records for each project so that funds are not unintentionally spent on other projects. This helps ensure accountability and provides transparency for funders.Regular Financial Check-ins
Hold financial check-ins as a team to go over project-specific funding, track expenditures, and make sure each project is financially on track.
Separating Records for Multiple Projects
If your team manages multiple projects, it’s crucial to keep finances for each project separate to avoid confusion and ensure accurate reporting.
Use Project Codes or Labels
Assign unique labels or codes to expenses and income associated with each project. This will make it easier to categorize and find records specific to each project later.Create Individual Project Budgets
Each project should have its own budget sheet that tracks projected and actual expenses. This helps you stay within budget limits and understand the financial needs of each project.Monitor Fund Balances per Project
Keeping an eye on the remaining funds for each project will help you avoid shortfalls. If a project is running low on funds, it’s better to catch it early and adjust.
Additional Tips for Finance
Create a Financial Calendar
Use a calendar to track due dates for financial reports, funding cycles, and budget reviews. This ensures you’re staying compliant with Enactus requirements and funder expectations.Plan for Unforeseen Expenses
Set aside a small portion of the budget as a contingency for each project. This can cover unexpected costs without disrupting other expenses.Prepare Financial Reports
Regularly preparing financial reports helps you evaluate financial health, track funding needs, and provide stakeholders with transparency.
Top Tips
Organize Receipts and Invoices: Keep digital or physical copies of all receipts and invoices for easy access and accountability.
Document Every Decision: Make sure every financial decision is recorded to ensure accountability and ease for future team members.
Stay Compliant: Follow all Enactus UK and Ireland guidelines to avoid issues in financial reporting or funding misuse.
Practice Transparency: Keep your team informed on the financial status of each project and encourage open discussions to maintain trust and ensure everyone is on the same page.
Managing your finances well is essential to running a successful Enactus team. By following these tips and keeping your financial records organized, you can make sure that every project has the resources it needs to make a positive impact.