Budgets
All organisations should have a budget. The budget is important for cash flow planning as well as for financial review. Given the seasonality of most sporting organisations, it is essential that some review is undertaken to ensure the club can pay its debts on time.
The budget can be as simple as a one page document with month columns across the top, and expected income and expenses filled in on the appropriate month. If you have access to a computer, an excel spreadsheet is the most efficient tool for preparing a budget. A sample budget template is available in our strategic business plan.
Budget preparation
Consider these points when preparing your budget:
- Is the timing of membership income correct?
Despite membership fees being due in a certain month, it may take another few months for all the fees to be paid.
- When is sponsorship money (if any) received?
Some sponsors will pay a set amount each month rather than in a lump sum.
- Is the dollar value estimated for expenses realistic?
The results from prior years may provide a guide, however some expenses may increase each year.
- Are any expenses dependent on the number of members?
If so, the budget should be adjusted for any differences once the number of members for the year is known.
- Your budget should include initial large expenses such as stocking a canteen with drinks.
- You should ensure that there is always a minimum balance in the bank for any emergencies that arise.