STArTInG A LOCAL RADiO stAtiOn - Nai

Section 6: Financial managementWhether you are a community station or a commercial station, this core section contains the elements offinancial management that contribute to the business development and financial sustainability of yourstation.In this section we’ll discuss:nnnnElements of financial managementHow to create your budget and financial reportsHow to develop a business planSources of incomeDEFINING FINANCIAL MANAGEMENTEvery radio station needs a manager that is committed to responsible and realistic financial planning.Financial planning requires you to think about the survival of the station. Ask yourself:1) Are our future plans for the station, including labor, production and growth realistic?2) Is the station’s income being spent efficiently?3) Is money spent responsibly, in ways that contribute to the goals and mission of the station?What do we mean by responsible financial management?n Only making commitments/agreements that you can honorn Paying employees and accounts on timen Keeping accurate and organized records of money that comes in and goes outWhat is financial management?Financial management is planning income and expenditures in a way that permits financial survival. Agood starting point is to create a financial policy that identifies procedures for planning, implementing,monitoring and evaluating your station’s budget.One approach to creating a financial policy is to answer these questions:n Who will draft the budget?n Who will be consulted when creating the budget?n What are the main parts of the budget?n Who will finalize the budget?n How will the budget be monitored and evaluated?STARTING A LOCAL RADIO STATION: A MANUAL FOR AFGHANISTAN63