All social enterprises, no matter their legal structure, have a constitution that requires their profits to be reinvested in the enterprise or directly used for community, group, or social goals.
Social enterprises are transparently managed to provide the community they serve a clear view of how profits are used. Unlike regular businesses, if a social enterprise closes down, its assets are reinvested into a similar organisation with the same goals.
How Can We Help Social Enterprises?
- Review and strengthen financial systems, controls, and reporting.
- Focus on relevant Key Performance Indicators (KPIs).
- Plan for future cash flow needs, funding sources, and variables.
- Accurately calculate budgets for the enterprise and business units.
- Develop financial and management info for business plans and grants.
- Help Directors understand the impact of changes and risks.
Key Financial Controls, Procedures, and Systems:
- Evaluate current controls, systems, and reporting, suggesting improvements.
- Create effective procedures and systems for operations.
- Review and recommend suitable accounting software.
- Assist in setting up software for streamlined financial management.
Financial Readiness and Tax Preparation:
- Define directors’ and trustees’ responsibilities.
- Establish policies and training for new directors/trustees.
- Align with social enterprise and charity governance standards.
- Build strong foundations for sustainability and resilience.
- Foster effective board behavior, risk assessment, and communication.
- Set up financial controls and risk monitoring.
- Address unforeseen risks that could impact the enterprise.
- Fulfill financial accounting, audit, and risk assessment requirements.