Financial Management guidance
The key financials for a club to prepare and detail required
A detailed cashbook enables the Club to record all financial transactions and provides the basis of the accounts.
How detailed your cashbook is will be determined by factors such as the size of the Club, the Club’s requirements and the Club’s circumstances (e.g. if the Club is incorporated or a Registered Charity). As a minimum, the Club should try and summarise the main sources of income and expenditure within their accounts.
Depending on size the Club may choose to keep a simple income and expenditure summary from the cashbook information, or use an electronic accounts package.
You should ensure that all transactions on the bank statement are recorded within your cashbook, and that the cashbook is reconciled to the bank statement regularly. Preparing a bank reconciliation is the process of matching and balancing figures in the accounting records with those expressed on a bank statement.
There may be unpresented cheques (that the club has issued but the receiver of that cheque has not yet banked it, and vice versa). An example of bank reconciliation has been provided: Template accounts for a cricket club (53 KB)
The cashbook should reflect your cash and bank movements (i.e transactions going through your bank statement and petty cash) and ideally should include:
- the transaction date
- any reference name and/or number (e.g player name, company name and invoice number, cheque or receipt number)
- a short narrative of the transaction
- VAT element (if applicable)
Annual Financial Accounts – a summary of your cashbook, ideally with a balance sheet showing your club’s assets and liabilities.
How often your club prepares its accounts will depend on the size of the Club. A large Club may prepare accounts monthly; however a smaller Club may prepare accounts quarterly.
Any less frequently and it may become difficult to monitor the club’s financial situation. The annual financial statements (for audit/review in time for the AGM) will be prepared at the Club’s year end. Some Clubs use the tax year end; some fit their year-end around the playing season.
Click Template accounts for a cricket club (53 KB) to see some example and basic template accounts that you can adapt.
Cash flow forecasts
Cash flow forecasts are a critical financial management tool and are important to prevent a Club running out of cash.
They set out what cash you are expecting in and what cash you are planning on paying out, so that at any point in time, the Club can identify where it will be short of cash.
Cash flow will not be constant throughout the year, as cricket is a seasonal game and Clubs are likely to have higher income and expenditure in the summer months, and will often depend on factors outside of your control. It is sound business sense to collect any guaranteed income (e.g subscriptions) as early as possible.
Also ensure that your Club has identified when bills become payable throughout the year (including VAT where applicable) to ensure you have enough cash available to pay.