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Managing your club’s finances
17 October 2013
Welcome and introductions
Overview of content
3
This seminar will cover the following:
1. Understanding your club’s accounts
2. Key areas to look for when reviewing a set of accounts
3. Effectively communicating your club’s finances
4. Preparing and monitoring budgets
5. Top tips and further support
4
Understanding your club’s accounts
Basic Accounts
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A basic set of accounts includes
Income & Expenditure
Balance Sheet or list ofassets
Cash flow statement
Other notes & explanations tothe accounts
Income
Expenditure
Income & Expenditure
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Income and Expenditure account(Profit and Loss)
What might go into an Income andExpenditure account?
The Balance Sheet
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AssetsFixed assets
Current assets
Liabilities
Long term
Current liabilities
Balance Sheet
What might go in to a Balance Sheet?
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Key areas to look for when reviewing a set of accounts
Exercise: Reviewing ABC’s accounts
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Review ABC’s accounts and commenton how well they are performing
Key areas to look for when reviewing aset of accounts
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Income & Expenditure
• Year on year differences? Why?
• Is the surplus impacted by change in income and expenditure?
• Any numbers that buck trends? E.g. Members have increased butfees have gone down
• Is there anything obvious missing? e.g. no spend on repairs &maintenance, insurance, licences, allowance for depreciation
• Any entries that don’t make sense – excessive travel, expenses thatdon’t seem to be in line with club activities
Key areas to look for when reviewing aset of accounts
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Assets and Liabilities
• Are any big payments due? e.g. Loan repayment, large invoice
• Are cash levels moving in line with profit?
• Does the valuation for club assets seem reasonable? e.g. propertyprices
• Does the cash balance match the bank statement?
• Have significant events been accounted for? e.g. purchases, sales
• Does the stock level look reasonable?
• Does the classification between fixed and current make sense?
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Effectively communicating your club’s finances
Communicating your accounts
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• Talk around the numbers – tell the story
• Make the headings clear and concise
• Show year on year comparison
• Think about who might look at the accounts (e.g. A club memberwants to know how their fees are broken down)
• Show in a visual format...
Visualising the numbers – an example
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Cash in Cash out
Surplus 3:
£2,000 still inbank
Visualising the numbers – an example
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Surplus 1:
£5,000 spenton stand
Surplus 2:
£3,000 paidoff loan
1st teamRevenue: kitsponsor, gatemonies and
prizesCosts: Kit,
expenses andreferees
£10,000 OUT
Other events,fundraising and
sponsorshipincome =
£15,000 IN
Bar/functionprofit: Bar andcatering takingsless food and
drink purchasesand bar staff =
£15,000 IN
U19/ReserveRevenue:
Sponsorship &subscriptions
Costs:Kit/equipmentand referees
£2,000 OUT
Central costs: Pitch maintenance, club-house maintenance, utilities andinsurance = £8,000
Surplus generated: £15,000 + £15,000 - £10,000 - £2,000 - £8,000 = £10,000
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Preparing and monitoring budgets
Timing is everything
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Jan Feb Mar Apr May June
£200 depositpaid to
caterers£800 paid
for kit
£1,000 paid forbar stock
£1,000 barstock ordered
on credit
Retirementdinner £5,000
£2,000paid out
£1,500 in theclub account
What the cash flow looks like
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Jan Feb Mar Apr May June
Bank balance atstart (b/f)
1,500 1,500 1,300 500 (500) (500)
Cash in 0 0 0 0 0 5,000
Cash out (0) (200) (800) (1,000) (0) (0)
Bank balance atend (c/f)
1,500 1,300 500 (500) (500) 4,500
Who should be involved?
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Not just for the treasurer:
• Coaches and trainers
• Committee members
• Facilities manager
• Bar manager
• Kit Secretary
• Social Secretary
• Communications Officer
• Suppliers
• Grounds man
• Cleaner etc
The budget will be more accurate if the right people are involved
People understand and can discuss the budget
People are more likely to stick within their budget
How to monitor your budget
20Budgets should be monitored on a regular basis...
Q2
Budget Actual Variance %
Income
Membership fees 25,000 22,500 -2,500 -10%
Fundraising activities - - - -
Sporting events 3,000 2,960 -40 -1%
Grants 2,000 1,000 -1,000 -50%
Sponsorship - - - -
Bar 3,000 3,892 +892 +30%
Kit 1,500 1,588 +88 +6%
Total income 34,500 31,940 -2,560 -7%
Expenditure
Staff wages 20,000 16,000 -4,000 -20%
Rent & rates 2,000 3,000 +1,000 +50%
Utilities 1,000 2,500 +1,500 +150%
Insurance 2,000 2,000 0 0%
Repairs - - - -
Marketing 500 - -500 -100%
Travel 625 812 +187 +30%
Sporting events 1,500 1,547 +47 +3%
Bar & kit costs 3,000 3,500 +500 +17%
Total expenditure 30,625 29,359 -1,266 -4%
Surplus/(deficit) 3,875 2,581 -1,294 -33%
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Top tips and further support
Top tips
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• Make your accounts and budget clear, concise and easy to understand
• Include information that might be useful to the users (e.g. notes orassumptions)
• Ask the right questions when reviewing the accounts or budgets
• Think about how to communicate to stakeholders (e.g. visually)
• Get the right people involve in preparing the budget
• Get someone to review them
Further supportwww.sportenglandclubleaders.com
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Online modules- Simpler Finance- Budgeting- Get your cash flowing
Toolkits – Top Tips – Simpler finance,
Profit vs Cash, Fixed Asset register, Debtors,Creditors, Stock, Budgeting examples etc.
Mentoring
www.sportenglandclubleaders.com
@Club_Leaders
www.facebook.com/ClubLeaders
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Thank you and good luck!
This seminar has been prepared to give general guidance for sports clubs as part of the Sport England Club Leaders programme. It does notconstitute professional advice and you should not act upon the information contained in these slides without obtaining specific professionalguidance. These slides are not to be used outside of the Club Leaders programme unless delivered in conjunction with Club Leaders or with thewritten agreement of Sport England.
No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication,and, to the extent permitted by law, Sport England, its members, employees and agents do not accept or assume any liability, responsibility orduty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication orfor any decision based on it.
© The English Sports Council - Sport England
