It is important for clubs to manage its finances competently by having a financial plan or business plan both short and long term. Short term, it is important to evaluate income and costs for the coming year, allowing the club to stay focused on their everyday finances. Identifying the club’s income and costs over a longer period will help when planning for the future, and in particular any significant projects they wish to undertake (such as funding for facilities or equipment).
A financial plan is a decision making tool:
> it sets out what actions you will use to implement your strategy and achieve your clubs’ objectives and vision.
> It spells out what needs to be done, by whom and by when.
> Lastly, it focuses on how you are going to achieve rather than just what you are going to achieve. Understanding the realistic likely sustainable income, the club can generate is a vital part of good financial management.
To ensure the clubs income is sustainable, it is important for it to be generated from a variety of sources (e.g. membership fees, sponsorship & fundraising, grant funding etc). It is also important to manage the cash flow of the club by recording all money in and out of the club using a reliable method such as cash sheets or cashbook, a spreadsheet or budgeting tool.
The following tool on the Club Matters website can support you to develop a financial plan: https://www.sportenglandclubmatters.com/club-finances/
This page gives guidance on managing the day to day finances of a club, by providing examples of simple finance practices.
This page looks at the opportunities for clubs to save money, such as reducing expenditure.
This page explores the numerous ways a club can look to generate income and offers guidance on each method.