1. Stop thinking of financial control as irritating paperwork that is unconnected with the rest of your work. Budgets are a crucial management tool. They make you prioritise. Whatever the size and scale of your project, there is always too much to do, and money is always finite. Budgeting forces you to keep asking fundamental questions about your purpose and strategies, and to be realistic about what is achievable. This is good.
2. Don't be fazed by accountants' jargon, their mystifying software or their strange personal habits. Talk normally to them. Finance officers are people too. Be friendly, don't panic and in time you will get familiar with balance sheets, spreadsheets and vireing.
You might even get to like them. But don't get to like them too much. You don't want to become so finance obsessed that you lose sight of your actual purpose. Tightfisted budget holders are not popular.
3. Mr Micawber famously said that if you end the year with slightly more money coming in than going out, you have happiness. Micawber was wrong about many things. The timing of the money flows can scupper that happiness. Get your organisation's bean counter to recommend a cash flow forecast tool. Or do your own cash flow projection. Make forecasts for the coming months, listing when money is coming in and when it will have to go out, alongside a running tally. Note any danger periods. Juggle something.
4. Cash flow control isn't just about making sure you don't run into the red part way through the financial year. It also helps to avoid the false sense of security you can get by looking at a single budget report and feeling that you still have plenty of money. Be conservative when estimating any variable income, and be generous when assessing your outgoings. You'll like a nice surprise.
5. Find out precisely what elements your budget headings cover. Examine the accounts of previous years to see where underspends and overspends are likely.
Make a note of what spending, such as salaries, is relatively fixed, and where you have more flexibility. And whatever you do, don't hesitate to revise a budget. Remember, it is a tool to help you deliver, and it isn't etched in tablets of stone.
6. Don't panic if you are asked to find savings. A percentage reduction across the board might appear fair. However, it is unlikely to be the most intelligent way.
Whereas a cut of any size might well scupper one entire project - the essence of another might happily survive some pretty heavy pruning. And involve the team in decisions. Shared creative thinking is better than poring over a spreadsheet alone late at night and making arbitrary cuts.
