All football clubs, no matter their size, need sound practices for regulating and recording financial transactions.
The treasurer is responsible reporting the financial status of the club to the committee on a regular basis and comparing the financial performance with the budgeted performance.
All clubs should have a budget as it underpins all club activities and plans, in the short and long term. Your sports club budget (also known as a financial plan / forecast) is a tool to help your club manage money and plan for a healthy future.
The treasurer is responsible for developing a financial plan (or budget) for the club in consultation with the relevant committees.
Writing a club budget doesn’t have to be complicated. One way to create the budget is to compare your actual income and costs to what you budgeted or use last year's figures.
The club’s development or strategic plan should also be examined to identify any additional sources of income and major areas of expenditure associated with the coming year. The budget is then drawn up outlining when money can be spent and when it should be held in reserve to cover future payments. The budget should be reported on monthly at committee meetings and annually at the club’s AGM.
A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. At the end of each month, figures recorded in the cashbook should be checked against the bank statements. It is also beneficial to summarise what the club owes its creditors and what is owed to the club. The opening cashbook balance for each month is the closing balance from the previous month.
Annual Financial Report
A statement of income and expenditure and a statement of assets and liabilities are the principal components of the annual financial report to be adopted by members at AGM. These statements show the profitability and financial position, as well as the net worth, of the club after the year’s activities and should include comparisons to the previous year’s figures to assist the members in determining any area of significant change between periods.
The report is based on the receipts and the payments, which have been summarised in the cashbooks.
Annual income and expenditure statement shows how much money the club has made or lost over the year. The statement is based on figures recorded in the cashbook and is normally prepared by your club’s treasurer and verified by the auditor.
Annual statement of assets and liabilities is a statement of what the club owns and what it owes, the difference between the two being the net worth or accumulated funds of the club.
If the club is incorporated under state/territory legislation, it is required to lodge a return (copy of the annual accounts) at the appropriate state/territory authority.