Sound financial management is crucial no matter how small and focussed or large and complex your CAG is. If your group has responsibility for or managing member funds, grants or a bulk-buy scheme you will need sound financial management processes. This does not mean that you will necessarily need an accountant or book keeper on your committee, but you must have clear processes for maintaining reliable and detailed records that are documented in a way that matches any reporting or auditing requirements your group may have.

In planning and managing your CAG’s finances, you need to:

It may be worth checking in with an accountant or other financial professional to make sure that your finances are being managed well. You never know, there may be a local accountant prepared to sit on a Finance Sub-Committee or equivalent with your group.

The Our Community Finance Centre provides some great tips for establishing sound money management procedures.

There are many benefits to being an incorporated and registered not for profit, such as being able to apply for grants, not having to pay tax and being able to apply generous fringe benefit tax rules for employees. Make sure you make the most of your legal status when managing your finances.