When I stepped into the CFO role at a small non-profit organization some years ago, I inherited a passionate team, a fast-growing organization — and a financial process that ran almost entirely on improvisation and memory.

There were no real workflows for approvals. No spending accountability. No documentation. Vendors got paid, eventually, but not always smoothly. And financial decisions were reactive rather than structured.

The organization wasn’t in crisis — yet. But I knew if we didn’t implement internal controls soon, we’d be putting our programs, reputation, and resources at risk.

Here’s how I built a system of internal financial controls from the ground up — and why the model we used still holds up today.

The Problem: No Structure, No Accountability, High Risk

What was happening:

A staff member would contract a vendor or make a purchase for an event or program — without getting multiple quotes or seeking financial approval.
When the invoice arrived, they’d hand it to the bookkeeper, who would enter it into QuickBooks and print a check.
The check was then brought to the Founder, who often had no idea what the charge was for.
If he questioned the charge, he’d call in the staffer on the spot, ask them to explain it, and if unconvinced, he might hold the check, tell them to dispute it, or call the vendor himself.

Why it didn’t work — and what it risked:

No pre-authorization
There was no oversight before funds were committed. By the time an invoice arrived, it was too late to ask whether the cost was justified. This exposed the organization to unbudgeted spending and the risk of approving charges that weren’t aligned with strategic goals.

No documentation trail
Checks were being written with no supporting explanation, no context, and no audit trail. This made it difficult to reconcile expenses, explain charges to the board, or prepare for an audit. It also put the bookkeeper in the uncomfortable position of processing payments blindly.

No price competition
Staffers, focused on program execution, often just went with the first vendor they found. They weren’t comparing prices or negotiating terms — not because they didn’t care, but because they weren’t trained to think of themselves as financial stewards. This led to consistent overspending and missed savings opportunities.

Executive bottleneck
The founder was being asked to approve payments after the fact, often with no visibility into why the charge was made. This pulled him away from strategic work and put him in the awkward position of playing financial detective — calling vendors, arguing over charges, or mediating staff mistakes.

No staff accountability
Staff didn’t feel ownership over the organization’s money. If a vendor was overpriced or a charge was unnecessary, they didn’t see it as their responsibility to push back. This created a culture of “just get it done,” where convenience trumped fiscal responsibility.

The Solution: A Culture of Ownership, Structure, and Financial Discipline

I knew we couldn’t just layer in bureaucracy — the system needed to be clear, teachable, and scalable. But more importantly, it needed to shift the culture so staff saw themselves as financially accountable, not just programmatically responsible.

Step 1: Introduced a Check Request Form

I created a simple, standardized form that every staffer was required to complete before any invoice could be processed. It had to include:

The vendor and amount
A copy of the invoice or estimate
A clear explanation of what the charge was for
The program or budget line it related to
A signature confirming the request was being submitted for approval

This wasn’t just a paper trail — it was a behavior shift. By forcing staff to explain their expenses in writing, they had to stop and think: “Is this reasonable? Is it necessary? Could I get a better deal?”

Step 2: Centralized CFO Review and Approval

All check requests came to me. This gave me visibility into every transaction before money left the bank. I reviewed:

Whether the cost made sense
If it aligned with the budget
Whether quotes had been obtained
If the staffer had considered more affordable options

If anything didn’t feel right, I’d send it back, ask questions, or ask the staffer to renegotiate. For larger or strategic items, I’d loop in the Founder — not to micromanage, but to align on the decision.

No invoice could be paid without my signature.

Step 3: Required Competitive Quotes for Purchases Over $250

I instituted a policy that for any expense over $250, staff had to provide 2–3 quotes. This forced them to:

Compare pricing and value
Justify why they chose a specific vendor
Consider alternatives — not just go with who was convenient

This saved the organization real money. But more importantly, it trained staff to approach spending with the same intentionality they brought to programming.

Step 4: Empowered Staff with Vendor Responsibility

I didn’t just block or approve requests — I taught staff how to:

Negotiate with vendors
Push back on unclear or padded invoices
Ask for nonprofit discounts or better terms
Document their decisions clearly

In short, I helped them develop real-world financial management skills. They began to see themselves not just as educators or event planners, but as program managers with responsibility for stewardship.

Step 5: Structured, Respectful Executive Oversight

Once checks were printed, I would review them again, group them in batches, and present them to the Founder for signature. Because each item had already been vetted, explained, and documented, he no longer had to interrogate the process. For small recurring items, the bookkeeper could bring them directly, but always with my prior approval.

This turned the ED’s role from fire-putter-outer to final approver — confident that the process had already done the work.

Results: A Financial Culture Built on Structure and Trust

Before:

Staff spent without oversight
No price comparison
Founder micromanaged check review
No vendor accountability
Reactive, ad hoc spending

After:

All spending pre-approved and documented
Multiple quotes required for purchases over $250
CFO filtered and vetted expenses before presentation
Staff learned to negotiate and defend costs
Proactive, budget-aligned, and audit-ready

What we built wasn’t fancy. It was just smart. And it gave the organization a repeatable system for managing its resources without slowing down the mission.

Is This Still a Valid Model in 2025?

Absolutely. The underlying principles — segregation of duties, pre-approval, documentation, accountability — are still the gold standard in internal financial controls. What’s changed is the interface.

Today, this same workflow might happen through:

Digital approval platforms like Bill.com or Ramp
Cloud-based accounting tools like QuickBooks Online
Automated workflows with role-based permissions

But the human structure — and the financial culture it builds — is the same.

Final Thought

Financial control isn’t about slowing people down. It’s about helping them own the impact of their decisions, and giving leadership the tools to scale responsibly.

The truth is, designing internal controls is the easy part. The real challenge is implementing and sustaining them. That takes more than policies and forms — it takes the right kind of leadership.

You need a CFO who:

Understands how to monitor activity without stifling autonomy
Can train and motivate staff to take ownership of their financial responsibilities
Guides the bookkeeper without micromanaging
And just as importantly, can manage up — helping a founder or executive director shift from hands-on micromanagement to trusting a reliable, structured system

That’s what I brought to this organization, and it’s the kind of leadership any mission-driven organization needs if it wants to grow without losing control of its resources.