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Managing your sports clubs money, grass roots club, financial stability, sustainability, finances.

Managing Your Money

Hints & Tips

 

Ensuring the financial stability of a sports club is crucial for its resilience and sustainability. Although managing day-to-day finances might appear daunting, it is a vital aspect of maintaining a reputable and sustainable sports club.

 

This article offers hints and tips for your club to consider while navigating the complexities of financial management, allowing you to concentrate on winning on the field.

  1. Stay Organised

Establish a monthly routine to review your finances. Monitor your bank accounts to track incoming and outgoing payments and maintain accurate records of club items such as uniforms and snacks. In case of discrepancies, ensure you comprehend the reasons behind them. For any inventory, like club kits or refreshments, maintain thorough stock records and conduct regular stocktakes.

 

2. Keep Your Finances Seperate

Maintain a clear distinction between personal and club finances to prevent confusion. Avoid commingling personal funds or committee money with the club's finances, as this can be confusing at best and potentially lead to fraud at worst. Save any receipts for club expenses and adhere to spending guidelines.

3. Bank Account Management

Establish a dedicated bank account solely for your club to keep things organised. Choose a formal or business bank account to separate it from personal accounts. We recommend setting up a system, even in online banking, that requires at least two signatories for payments. This helps prevent errors and reduces the risk of fraud.

 

4. Annual Accounts

At the end of your club's financial year, it's typically the club treasurer's responsibility to handle this. This step is crucial, especially for clubs set up as limited companies or charities, as they have legal requirements:

- Check annual account requirements for limited companies at Companies House

- Check annual account requirements for charities on the gov.uk website.

 

After preparing the accounts, have an independent person review them. This person should possess suitable financial knowledge and experience for a thorough review. If your club operates on a membership basis, make sure to publish your annual accounts or a summary for members to access. You can share this information through your club website, newsletter, email, or any method that suits your club.

5. Communication and Transparency

Ensure everyone at your club is well-informed about how the club is doing financially. Make sure your reports are as simple as possible for easy understanding. Transparency is vital for building trust within the club, especially for members who contribute fees and wish to know how their money is being used.

6. Cash Flow Management

Whether you're just starting as a sports club or have been running for decades, managing your cash flow is crucial for your club's sustainability. Record all money coming in and going out of the club and find an easy way to do this—whether it's through cash sheets, a cashbook, a spreadsheet, or a budgeting tool.

7. Reserves

Your reserves are your club’s safety net, saved for unexpected needs to keep things running smoothly. Only use reserves for important club stuff, excluding fixed assets and specific funds. Establish a reserves policy, with goals and spending rules, helps manage things well and builds trust with members. It's a smart way to balance what the club needs now and in the future.

​8. Budgeting

A budget will help you plan for the short and long term, guiding all club activities. Every sports club should have a budget, serving as a financial plan for a healthy future. It's best to have both a short-term budget, focusing on the next year and breaking it down into quarterly or monthly plans, and a long-term budget covering the next 3 to 5 years for future projects. Developing a budget doesn't have to be overwhelming. Keep it simple and realistic by regularly comparing actual income and costs to your budget or last year's figures. Unrealistic budgets can be demotivating and lead to financial trouble, so ensure yours is practical and adjust it as needed.

​9. Cost Savings

Clubs with their own space can cut costs by being energy-efficient, while those without their own facility can still save by managing expenses wisely. For clubs with facilities, reducing energy costs is key—track and understand your energy bills, identify major costs, plan actions like installing energy-saving solutions, and regularly check for better deals from suppliers. For those without facilities, look at spending habits, consider alternatives, ask for discounts, use free services wisely, and explore bartering or seeking support from members and your Governing Body for potential discounts.

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