Administration and Management of an ECCE Centre: Importance of Accounting and Social Auditing

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Importance of Accounting and Social Auditing

Accounting and social auditing is the process of communicating the social and environmental effects of organizations’ economic actions. Social accounting may be defined as identification and recording of business activities regarding social responsibility.

Accounting and Social Auditing

Accounting and Social Auditing

Social responsibility concept is the one of the important concept of management. Social accounting is very important tool to measure the performance of any company in view of social responsibility.

Objectives of Social Accounting

The main objective of social accounting is effective utilization of resources. The others are to:

  • Provide you with an ongoing record of how your ECCE center has developed and changed overtime.

  • Receiving feedback on how things are going

  • Identify the areas where things are working well and not so well

  • Know how well the aims and objectives are achieved

  • Collect information you can use when applying for grants and funding, for reporting on grants, and for promoting what you do.

Management and Utilization of Funds

  • Financial plan is essential for effective and efficient utilization of funds. It helps you in evaluating your present financial status and in setting goals for running of the center. It also provides evidence of funding sources indicating that you have researched and planned the future financial management of your center.

  • Preparing a budget is the first step of financial planning for the center. The budget helps in forecasting the expenditures and estimating the revenues like, where the money will come from for the targeted expenditure.

  • All financial transactions need to be recorded promptly and accurately. Monthly review of expenses and income should be conducted. All staff should take the lead in demanding and enforcing proper financial management of the center’s fund.

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