Financial management is one of the most important skills an organization can learn. Becoming familiar with your organization’s financial position is not difficult but requires some knowledge and discipline including the following: 

• A basic understanding of financial language so that you can translate your organization’s vision and goals into quantitative terms (i.e. numbers);
• Being pro-active and using your financial statements as a decision-making tool;
• Recognizing any danger signs that may be occurring in your business; and
• Honing your decision-making skills to ensure the strategies implemented are financially feasible.

Financial Management also Requires the Following Attributes:

Takes a questioning attitude:

• Can expenses be reduced?
• Have priorities and objectives changed?
• Which inefficiencies can be improved?

Focuses attention on outputs:

• Are activities cost effective?
• Identification of opportunities for cost saving
• Increased staff involvement:
  • Managers understand their operations
  • Managers actively participate in the budgeting process
  • More communication among managers
• Identification of important issues and priorities