As the saying goes, “money makes the world go ’round.” Ensuring your board can make informed financial decisions is essential for your association’s success. Watch Zzeem’s May webinar to learn how to how to equip them with the tools and knowledge to help your association thrive financially. Read on for a summary of the key strategies discussed!

First, demystify financial statements:

  • Break down the basics of the balance sheet and income statement.
  • Explain what the organization owns (assets), what it owes (liabilities), and what remains after obligations (net equity).
  • Use simple language and add a narrative to make the data relatable.
  • Whether it’s written or verbal, ensure that every director can follow along and understand the key points.

Next, help the board predict future outcomes based on current data:

  • Regularly compare actual figures to your budget to identify discrepancies early.
  • Analyze trends in revenue and expenses to forecast future positions.
  • Highlight any new or ongoing risks and keep the board updated on strategies to manage them.

Clear communication is critical:

  • Provide concise management reports that highlight key points from the financial statements. These reports should be both written and verbal.
  • Inform the board about what decisions or actions are required based on the financial information presented.
  • Clear instructions ensure the board knows exactly what is expected of them and by when.

Offering detailed insights further empowers your board:

  • For major events or programs, provide schedules showing all revenue and expenses in detail.
  • Show comparisons of current figures with budgeted amounts and previous years’ data to identify trends and prompt the right questions. This detailed breakdown helps board members understand the financial situation and make informed decisions.

Additionally, training and support are so important. Provide regular training sessions on financial statements and key metrics to boost confidence and understanding. Don’t hesitate to bring in external parties to inform and guide the board through complex financial issues, such as insurance.

By following these strategies, you’ll ensure your board is prepared to lead your association to success. Informed and timely decisions are the cornerstone of effective governance, and with the right tools and knowledge, your board can navigate the financial landscape confidently and effectively.

Take the first step in your board with the tools to master finances by watching the recording for Zzeem’s May webinar today! While you’re at it, subscribe to our mailing list and be the first to know about upcoming webinars!