Many CEOs have indicated that they often find difficult to manage FD’s and feel embarrassed to ask financial question which might reveal CEO’s lack of grasps on accounting issues. CEO has also very few place to turn up for advice or confidential discussion. Being other sides of the I would like to share following

TIPS for CEOs.

  1. Do not try to be an accountant but be financial manager.
  2. Have you got the right people ? You should first work out whether your FD believe the charities mission and is s/he can participate in organisational overall direction without talking too much numbers. If the FD feel superior than rest of the people – you have got a problem here.
  3. Agree on Regular Reports, its formats/contents and deadlines that you feel comfortable. If you do not understand them, then there is a problem about communication and others are unlikely to understand this. The Regular reports should not be more than 5 pages and must contain 1 page narrative highlighting major issues.
  4. You must insist to get a cash-flow statement, which must be rolling and at least reflect six months ahead.
  5. Once you agree on the above, and then you should insist to get the report within time – no excuses should be accepted.
  6. Share these reports in teams meeting and that will ensure the further checks and balances.
  7. Make the best use of your Treasurer and insists that s/he presents the finance reports at trustee meeting and always spent some time with the FD before the paper goes to trustees.
  8. Remember that if you can bring money then you are no less qualified to count it.

SOME USUAL SYMPTOMS

  • If you hear too much reference to systems – you are likely to be assure that books are not updated regularly.
  • If find too many reference of auditors – your FD is not sharing everything with you.
  • If you hear that they are often working longer hours – either they are inefficient or you have to address the resources issue immediately.

Disclaimer: These are based on my experiences and not a definite suggestions for you to follow without considering you circumstance.

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