1. Financial practices are important to any enterprise and projects within agricultural organizations are no different – success can only be achieved when all activity is based on sound financial principles and quality financial management.
2. Managers must ensure that they put forward the best case possible to obtain funds and, once the funds have been allocated, they must ensure that the funds are spent according to the plan.
3. The successful manager will, at all times, know what money has been allocated to each activity, how that money is to be spent, and what money has already been spent.
4. The successful manager will be able to justify all expenditures and show that they have been made in accordance with the financial plan and the financial regulations of the organization.
5. To do this, every manager must understand the three financial operations of budgeting, accounting and audit.
Budgeting: Creation of a financial plan showing the expenditure and income expected for each activity in the project.
Accounting: Recording and reporting the actual income and expenditure.
Audit: Ensuring that all control procedures are appropriate and comprehensive and followed, particularly financial.