Introduction to Book Keeping and Financial Management For CBOs

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  • Welcome Note

    1    Welcome to the Introduction to Bookkeeping and Financial Management Course.

         The majority of community leaders that I know are passionate about creating change in their communities and transforming lives and  livelihoods. However, many struggle with finance management due to a lack of adequate knowledge and practice on how to manage financial resources. Not to mention the varying donor requirements when it comes to financial reporting. 

    This course has therefore been designed for Community Based Organization Leaders with the aim of equipping them with foundational bookkeeping skills, and knowledge of finance principles. This ten-week program will be delivered through recorded and live lectures. We have also provided loads of materials/handouts to help you with additional reading. 

    Welcome on board and let us learn together!

    Your Facilitators

    Loise & Steve

    • أيقونة منتدى

      Course Overview

      Financial management is a key pillar in any organization, and bookkeeping plays a crucial role in it. Accurate bookkeeping provides a reliable way to measure performance and becomes a benchmark for income goals. It also empowers non-profits to make strategic decisions and ensures non-profit compliance.

      This course explores basic bookkeeping in depth while highlighting the importance of maintaining accurate records. It touches on budgeting, taxation, and financial planning and discusses how to prevent fraud in your non-profit. You will also learn about financial ratios and KPIs, how to manage donor funds and the best accounting software for your organization.

      The course will be delivered over a period of 11 weeks, with a maximum weekly engagement of 4 hours as follows: 90 minutes of live sessions and an additional 90 minutes review of materials. 


  • Module 1: Understanding & Managing Donor Funds

    Donor funds are the backbone and the key source of funds for most non-profits and community-based organisations. They facilitate the execution of programs and community projects as well as help organisations achieve their mission. 

    These funds require proper management to assure donors and any funding partner that the funds given are being used in the intended ways. 

    In this module, we shall seek to explore and understand the importance of proper donor fund management, including ethical considerations, risk management strategies, and successful fund management models.


    Understanding & Managing Donor Funds- Introduction Video


    • أيقونة الملف
      Understanding & Managing Donor Funds Handout Notes ملف PDF
    • أيقونة المحادثة
      Donor Funds Managment Reflection 1 محادثة
  • Module 2: Basic Principles of Bookkeeping

    Bookkeeping refers to organising and recording financial transactions, such as receipts, payments, and purchases. It also involves maintaining concise and clear financial records that make information easily accessible. 

    Besides being a legal requirement, bookkeeping is the backbone of any organisation’s financial health. By the end of this session, participants will be able to: 

    1. Understand the fundamental principles of bookkeeping
    2. Define key accounting principles/definitions
    3. Understand the process of recording financial transactions, reconciling accounts, and preparing financial statements.


    Basic Principles of Bookkeeping- Introduction Video


    • أيقونة الملف
      Basic Bookkeeping Notes ملف PDF
  • Module 3: Tracking Income and Expenses

    Accurate records will enable you to evaluate the cost of your programming work, and performance and measure this versus the outcomes and impact. This session aims to help participants understand the importance of tracking income and expenses in organizations. In addition, we shall discuss the following: 

    • Common Financial Transactions
    • Fund Accounting and Revenue Categorization
    • Expense Categorization
    • Importance of Maintaining Accurate Records
    • Record-Keeping Process

    Tracking Income and Expenses- Introduction Video

    • أيقونة الملف
      Tracking Income & Expenses Notes ملف PDF
  • Module 4: Budgeting and Financial Planning

    Budgeting is a key pillar of efficient financial management strategies. It allows your organisation to plan expenses and estimate income sources to ensure the effective implementation of your mission and the sustainability of the organisation.

    In this module, we shall :

    1. Explore the principles of budgeting
    2. Learn how to create a budget and forecast future financial needs
    3. Evaluate budget performance.

    Duration: 90 minutes


    Budgeting and Financial Planning-Introduction Video

    • أيقونة الاختبار
      Budgeting & Financial Planning Quiz إختبار
  • Module 5: Introduction to Financial Statements

    Generating financial statements is a vital step in bookkeeping. These statements consolidate details from the entries you record daily and offer valuable insights into your organisation's financial health and performance.  Financial records are also used to communicate how you utilise the donations and grants you receive. They can also be used to evaluate your history and governance structures when fundraising.

    In this module, we shall explore the following:

    1. Components of financial statements
    2. The accrual method of accounting
    3. The interrelation between financial statements

    Duration: 2 hours


    Financial Statements-Introduction Video

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    • أيقونة الملف
      Introduction to Financial Statements ملف PDF
    • أيقونة الاختبار
      Financial Statements Quiz إختبار
  • Module 6: Cash Flow Management & Sustainability

    Cash flow management involves monitoring, analysing, and optimising the flow of cash in and out of an orgnaisation. It requires the organisation to have sufficient cash on hand to meet its financial obligations while also funding future growth.

    At the end of this module, participants will be able to:

    1. Understand the importance of cash flow management
    2. Interpret cash flow statements
    3. Identify strategies for improving cash flow,
    4. Recognize the relationship between cash flow management and sustainability.

    Duration: 90 minutes

    • أيقونة الملف
      CashFlow Managment & Sustainability Notes ملف PDF
    • أيقونة الاختبار
      CashFlow Managment Quiz إختبار
  • Module 7: Effective Financial Management- Financial Analysis and Reporting

    A non-profit's financial health depends on its ability to monitor and assess its financial performance through tracking key indicators. To do this, organisations must maintain accurate records such as balance sheets, expense, and revenue statements that are necessary when preparing financial statements. 

    Financial reporting means giving outsiders access to your organisation’s financial information and status. This is necessary when fundraising and during program reporting. 

    In this module, we shall be discussing effective financial management with a focus on looking at financial analysis and reporting. 


    Effective Financial Management- Financial Analysis and Reporting- Introduction Video

    • أيقونة الملف
      Module 7- Financial Analysis & Reporting Handout Notes ملف
  • Module 8: Effective Financial Management- Internal Controls and Fraud Prevention

    Internal controls refer to management practices that protect your non-profit’s integrity. These financial measures prevent asset misappropriation and misuse, such as embezzlement or theft as well as techniques used to safeguard assets,  ensure accuracy in financial reporting, and prevent fraud. 

    In this module, we shall discuss the significance of internal controls in organisations, and identify  the two categories of internal controls, which are detective and preventive. We shall also explore common internal control procedures, and fraud prevention strategies, and develop an awareness of the consequences of internal control failures.


    Internal Controls and Fraud Prevention- Introduction Video


    • أيقونة الملف
      Module 8: Internal Controls and Fraud Prevention Handout Notes ملف
  • Module 9: Tax Managment

    Welcome to Module 9 where we shall be discussing Tax Management as per the Kenyan Laws. 

    In Kenya, The Kenya Revenue Authority also known as (KRA) is the sole organisation mandated by the Kenyan government to collect taxes. KRA has developed a self-service platform labelled eTims designed to help citizens, businesses and organisations file their tax returns.


    Every organisation, Non-Profit or not, is required to maintain proper accounts, adhere to monthly statutory deductions and most importantly, file their annual tax returns. 

    At the end of this session, you  will:  

    1. Gain a comprehensive understanding of relevant Kenyan tax regulations. This will include Providing an overview of key taxes in Kenya, including Value Added Tax (VAT), Pay As You Earn (PAYE), Withholding Tax, Corporate Income Tax, and Fringe Benefit Taxes.

    2. Learn how to navigate through the eTims system and how to file different taxes.

    3. We shall also discuss tax exemptions, who can access these exemptions and how to request them. 


    Tax Management -Introduction Video


    • أيقونة الملف
      Tax Management Handout Notes ملف
  • Module 10- Reflections

    We have come to the end of this course and would like to take time to reflect on what you’ve learned and how you can apply this knowledge moving forward. Reflection is a crucial part of the learning process as it allows you to consolidate your knowledge, consider what worked well, and identify areas for further improvement. 

    We have also shared some additional resource materials to help you understand the type of financial Key Performance Indicators (KPIs), you can set for your organisation as well as common pitfalls to avoid that most not for profit organisations make. 

    • أيقونة رابط إلكتروني
      Course Reflections رابط الكتروني
    • أيقونة الملف
      Module 10 Reflection-Handout Notes ملف