How the finance wizards function

How the finance wizards function

Here’s how it works at the moment : the Finances Skipper is responsible to collect and structure the financial data in order to make them “user-friendly” to the Financial Wizards so they can make the decisions based on accurate and up-to-date information.

The following questions are the most relevant to establish a basis for the Fin. Wizards work.

• Revenues : what are the expected revenues from our sales and/or fundraising effort? What’s the status of these revenues (confirmed or not)?

• Expenses : What are the expenses necessary to sustain our activities? where do we stand with them at any moment in time?

• Liquidity : What is the money available at any moment in time and will it match our needs?

• Reporting : are there any specific reporting needs towards our donors or public authorities (tax issues, social coverage, etc)…

Collecting and processing the data also involves other actors such as our external accountants, our clients and partners, as well as team members. Sometimes there are grey areas, where forecasts or approximations need to be done to come as close as possible to the true situation of our monies (let’s be honest, 100% accuracy in the fine art of financial management is not realistic).

Then when all the cards are laid out (the answers to above questions), the Fin. Wizards may work their magics, i.e make financial decisions that will empower euforia to reach its strategical objectives. A few examples are :

• establish budgets of costs and revenues at euforia and circles levels, and empower project holders to come up with their own budgets (constrained by available resources)

• decide on revenue allocation (e.g how much to assign to structure budget, projects’ direct costs and temporary taskforces to boost euforia)

• approve new costs outside of budgets (eg hire a new staff for a particular role or project)

• address liquidity problems (postponing expenses or lowering/cutting expenses)

• develop the finances function : e.g. implement collective decision making on finances for the marketplace’s projects via adapted tools