Understanding of financial management in non-profit entities, supported by the budget

Abstract

In order to have an adequate, relevant and timely information, the administration of different tools designed organizations, seeking to satisfy their information needs for decision-making and cover them with stages of the management process (planning, organizing, directing and controlling). Assessment turns out to be particularly relevant to the administration and other agents of interest in Nonprofit Entities, since her management is confronted. In those conditions, the result of its management is not distributed to its members, but reinvested in the development of its business, the surplus being an important source of new resources; therefore, a proper definition of its financial structure is vital to ensure the sustainability of the same over time, including the propitiation of profitable and adequate estimation of working capital. It then proposes to assess the validity that has the budget as a tool to provide financial analysis of such entities, relevant information to enable planning and consistent evidence for a proper evaluation of the advanced management and thus provide feedback.