Control your finances

Do you know how much money is in your esports club’s account right now? Or how much is due out in the coming days? Controlling your club’s finances will be much easier if you keep accurate records and report against your annual budget. Here’s how to streamline the process and keep your club financially healthy.

Keep Detailed Accounting Records

All clubs are legally required to maintain accounting records that log all financial transactions. You should also keep records of:

1. Member Subscriptions: A database with member names, contact details, fees paid/owed.
2. All Income Received: Issue receipts for all income.
3. All Payments Made: Keep invoices and receipts for all payments.
4. Fixed Assets: Description and location of equipment.
5. Stock: Track stock movements and balances.
6. Cash: Details of all bank and cash transactions.
7. Bank Statements: Keep statements from your bank or building society.

These records are used to prepare annual accounts and are required by auditors/accountants and HM Revenue and Customs if there’s a tax inspection.

Choosing How to Record Your Club Finances

Depending on the size of your club and the volume of transactions, you can use:

1. Spreadsheets: Suitable for small clubs with fewer transactions.
2. Accounting Analysis Books: Simple, manual record-keeping.
3. Accounting Software: Ideal for larger clubs or those with many transactions.

Benefits of Accounting Software

Consider using off-the-shelf or cloud-based accounting software like QuickBooks or Xero. Benefits include:

1. Speed: Saves processing time.
2. Accuracy: Tools like bank reconciliations improve accuracy.
3. Reports: Generate actual vs. budget comparison reports easily.
4. Security: Backup records in the cloud.
5. Accessibility: Access records from any location with an internet connection.

Monitor and Review Financial Information

A stable and successful club regularly reviews its finances. Produce monthly financial reports showing income and expenditure, comparing actual performance to your budget. This helps you stay on track and take action if needed.

Simplify Budget Monitoring and Controlling

To keep track of your finances, you can:

1. Delegate Responsibility: Assign budget holders.
2. Implement Procedures: Set authority limits on spending.
3. Produce Reports: Regularly create actual vs. budget reports for budget holders.
4. Update Records Regularly: Reconcile records with bank accounts.
5. Monitor Cash Flow: Keep an eye on cash flow forecasts.
6. Form a Finance Sub-Committee: Consider setting up a finance team.
7. Produce Management Accounts: Monthly management accounts help review the club’s financial picture.

Producing Regular Management Accounts

Management accounts should include:

1. Income and Expenditure Against Budget: Track financial performance.
2. Balance Sheet: Show all assets and liabilities.
3. Additional Information: Include money due in and out as appropriate.

Hold a Fixed Asset Register

Track valuable equipment with a fixed asset register, including:

1. Date of Purchase
2. Cost
3. Location
4. Condition
5. Responsible Person

This register helps with insurance requirements, renewals, and claims.