Each organization has its own funds. Be it a school, a hospital, a prestigious company, or even down to the smallest convenience store has fund. Funds literally mean a supply of money, stock, or resources that are set aside for a purpose. There should be an accounting of what goes in and out of an organization to properly keep track of the funding.
Funds when not handled properly can turn into a messy business. Your company may be on the verge of bankruptcy and you don’t even know it because you take bookkeeping or accounting for your costs and merits for granted. You may have been spending more than what you are earning.
This is why teaching finance for non-financial managers is an integral part of the success of a business. How can one have a leadership that gets results when one does not even know how to budget?
Finance is the act of managing funds. It often includes saving money and often lending out money. There are different areas of finance namely business finance, personal finance, and public finance. Finance deals with time, risks, and money and how they are related to each other. It also deals with where and how the money is spent and also how the funds are budgeted. There should be money set aside for savings or for storage at the bank and some are left for any expenses needed by the company.
Accounting of funds should be handled by a specialist especially if the company is a large one. A group of specialists would be better so that if something slips by one, the others can recheck it. More brains at work equals to lesser time spent and lesser mistakes.
The accountants or the ones that handle the funds should not only be the ones who should learn about proper funding. Lessons should be taught on finance for non-financial managers so that they would learn the kind of leadership that gets results. Managers should not just think of how to spend money but also how to save it. For example electricity that isn’t in use should be turned off or excess paper should be recycled. Just because a company is not yours does not mean you need not care about its expenses.
Leaders should set out an example to the members of the organization. They should be the role models that the members can look up to.