Regardless of the size of your sports club, it’s important to properly manage its resources. Most sports clubs in Australia operate with limited funding and other resources, so board members must take steps to ensure that there procedures in place to properly govern and manage the club’s funds.

Typically, most boards will appoint a club treasurer, who will be tasked with recording the transactions that affect the club’s cash and other resources. Most treasures make regular reports on the financial status of the club to the board, and one financial area of special concern to treasurers and other board members is the proper governance of the club’s cash flow.

Why is Cash Flow Management Important?

It is very important that cash flow be managed so that the club always has enough cash available to pay for upcoming expenses. Without this necessary cash, the club risks not only outright default on obligations, but could also face various legal and tax consequences in the form of fines for non-compliance.

What is Cash Flow?

Cash flow is simply the amounts of money that are received by the club. Cash may be received in the form of donations, grants, gifts, membership fees and other sales, fund raising events or less commonly, from the rent or sale of club assets. The club’s treasurer is usually tasked with collecting and recording the club’s receipt of funds.

As part of creating the budget, the treasurer will also look at the club’s expected inflows and outflows of cash and make some predictions on when funds can be expected to be received by the club, as well as when the club might need to make payments or other outlays of cash. Common expenses that result in the outflow of cash include rents, salaries, heating and cooling expenses, equipment rentals and purchases, travel, taxes and so forth.

By properly managing a club’s cash flow, the treasurer and the board can ensure that there is enough operating capital and other resources to allow the club to fully thrive and survive for many years.

Steps You Can Take to Better Manage Your Club’s Cash Flow

While the thought of recording your club’s inflows and outflows of cash might sound easy, it is typically a time consuming and even difficult process. In addition to recording transactions, it’s necessary that this data be provided in a form that is both useful and easy for board members to understand.

At Admin Bandit, we understand the specialised needs of volunteer treasurers and NFP Board members, and have developed a full range of accounting software products that can reduce the amount of time and energy that you spend keeping up with your club’s finances.  Our club software makes it easy to not only keep up with transactions, but also simplifies the process for producing reports that give board members the financial information that they need and in a form that is easy to see and understand.

Our club software gives you the tools necessary to increase the oversight and management of your club’s books, so you can rest easy knowing your club’s finances are in good hands.  Signing up for a product trial of our accounting software is easy, so why not take a few moments to do so today?