Most individuals are prudent with their cash management or attempt to be. We set goals and plan, budget, and save. We fastidiously review the ins and outs, check spending patterns, and even balance the account regularly.
How do we apply that same care and diligence at work? Or do we leave that responsibility solely to the financial team?
Would we accept others spending our money without understanding where our funds are coming from, when they will arrive,e and how we are outlay? Most unlikely.
Organizations should consider their financial management practices. Without cash, you do not have much. Therefore, we should assign each line item on the income statement and balance sheet to an accountable individual. Similarly, we should be aware of both our income and expenses and be able to speak to that every month at minimum.
The good personal practice we adopt for ourselves is the minimum your organization requires of you. After all, when you overdraw, who is responsible? Is it you or the bank who manages your funds, and when you are successful, how willing are you to permit them to spend it as they choose?
