Accounting

Officials who oversee non-profit financial management must learn basic techniques of managing finances. Such skills should focus in areas of bookkeeping and cash management where entries have to follow certain guidelines in order to ensure that honesty and integrity is maintained. Leaders should further learn ways of generating financial statements and the procedure of analyzing those statements for them to know the financial of the organization. Basically, bookkeeping involves the entry of different financial transactions carried out by the company in books of accounts. New organizations record their financial activities through a cash basis accounting format and as the company grows, they develop ledgers and journals thus proceeding to the accrual system of accounting (Free Management Library, n.d.).
           
Leaders should also learn the process of making a budget which basically shows how a company plans to spend its revenue and manage its expenses for a given period of time.  The company will also incur minor and frequent expenses and thus require the use of a petty cash. After making those entries, a person should proceed to trial balancing which involves totaling of entries in a journal and recording them in a general ledger. An organization further requires bookkeeping entries to generate different financial statements like the cash flow statement which analyses the movement of cash through out the year. The statement of financial position shows the total value of the company (Free Management Library, n.d.).  Financial analysis involves comparing figures in the statement in order to know how different sectors of the company are performing. In conclusion, financial reporting is essential in a company and the frequency of producing financial reports depends on whether the organization is doing well or is in a crisis.