Managing your money is an essential part of good club management.
Although managing the day-to-day finances of your sports club can seem a daunting or tedious task, it's a vital part of running a reputable and sustainable sports club.
Below we have outlined some simple finance practices, which will help you manage your club's money and follow good governance standards.
Get organised and stay organised
- Set up a routine that works for you to maintain control of your money month to month.
- Check your club bank accounts at the end of each and every month to what you expect to have been paid in and out. If there are any differences make sure you understand why.
- If you have stock (e.g. club kit, refreshments or bar stock), make sure you keep detailed stock records and do regular stock takes.
Separate personal finances
- Keep any personal finances separate from club funds. Don’t mix up your money or money from the committee with the club's money, at best this is confusing, at worst this could lead to fraud.
- Keep receipts for all expenses and make sure these are in line with your club policy on expenses.
- Set-up a bank account for your sports club, most banks will allow you to do this by either going into a branch, over the phone or online
- Using a formal bank account, rather than an individual's personal account, promotes independence and a separation between the club and individual
- You should set up your account so that you require at least two signatories when making payments. This is called Dual Authorisation and reduces the risk of mistakes being made or the chances of fraudulent activity from taking place.
- For more information on online bank accounts and setting up Dual Authorisation, download our helpful factsheet here.
- At the end of your club's financial year, you should prepare your annual accounts, this is typically done by your club treasurer
- Preparing your accounts is particularly important if your club is set-up as a limited company or charity, as they have legal requirements:
- Once you have prepared the accounts, you should ask someone independent (i.e. not the person who prepared them) to review the accounts; the person reviewing should have suitable financial knowledge and experience to do this properly
- If your club is membership based, you should publish your annual accounts (or a summary) for your members to access - you could share this using your club website, newsletter, by e-mail or another method that works for you and your club
Communication and transparency
- Keep everyone up to date with the club's financial position - as mentioned above, publish your annual accounts for members if you are a membership based club
- Try to keep your reports simple so others can understand them
- Transparency is a great way to promote trust within your club and sharing your financial position is key to this, particularly if your members pay fees and would like to see where their money is going!
"Cash is King"
Whether you are just starting out as a sports club, or have been running for decades, managing your cash flow is essential to your club's sustainability. Record all money in and out of the club and find a way that works to do this easily e.g. cash sheets or cashbook, a spreadsheet, or budgeting tool.
Watch our video below for an introduction to what cash flow is. Remember, this is an issue that affects all sports clubs.