The ability for a soccer club to control their finances is make or break for the long-term success both on and off the pitch.
For local level teams, it can make all the difference to have an adequate system in place.
Club staff have to think on a day-to-day basis about ways to improve their finances and in turn grow their income. It’s something that needs consistent maintenance, otherwise it can all get out of hand.
That’s why organisation is the ultimate key to success. The main thing to do is review finances at the end of each month. This is assessing all incomings and outgoings and checking if these are at typical levels.
Getting the club to have an account on its own will prevent errors or mix ups, which could happen if it’s a joint account with a board member.
When the financial year comes to an end, annual reports must be prepared by an accountant or checked by someone with relevant expertise.
Another aspect to the financial process is budgeting, both for short term and long term. Budgeting should take place on both a short term and long term basis. The short term budget would outline both daily, monthly and quarterly outgoing and incoming funds, while the long term budget shows funding for 3-5 years.
It’s important to keep it realistic, ensuring a club knows what they expect to spend. Being able to stay under budget means it can be revised for the following year. When formulating the budget, what was spent last year versus income will be taken into consideration. It will highlight where spending for supplies may need to be cut, or even negotiating for a better deal.
The club treasurer is normally the one in charge of maintaining the budget, but all senior figures at the club can look over it.
Gaining as much income as possible will point a club forward in the right direction. There are many factors which can contribute to income growth, with clubs encouraged to review the following areas to maximise their profit:
- Membership and subscription fees.
- Finding and sticking with key sponsors.
- Fundraisers and events.
- Commercial activities.
- Acquiring grant funding.