Introduction
Like any other social activity, sports need to have some level of financial management. Financial management is essential for any sports body's survival (Watt, 2003). It also highlights the practice of good governance. Financial management of sports organizations or clubs entails the ability to review financial information and accurately manage funds. A good financial manager should possess the ability to implement proper financial practices that will be beneficial to the club in the long run. Additionally, the ability to understand the club's financial position or obligation will add the much-needed mileage in effective financial management. The aim of this essay is to analyze what is needed to be known about the financial management …show more content…
Furthermore, they should always act in good faith for the interest of the organization. On a broader analysis, the financial directors should know how to monitor all the business deals that relate to the organization. These directors should also have fingertip knowledge of the fundamentals of the club's business policies. The director should also be well informed about the club's activities and can assess the relevance or appropriateness of the club's business practices. Familiarity with the club's financial status through reviewing the club's financial statements is also very important. Being able to enquire into any financial matters related to the club should be part of the financial principles of the …show more content…
Sports clubs are no exception. Having a budget for a sports association is important as it assists in the planning of cash flow and financial reviews. Given the seasonal nature of operation of most sports organizations, it is imperative that some level of review is conducted to ensure that the club can pay its debts within the stipulated time. Furthermore, the budget will enable the club or sports organization to plan its financial activities for the given year. This will prevent impulse purchases and unplanned spending that may harm the economy of the club. While preparing a budget for the club, some important considerations must be assessed. For example, the timing of the club membership should be accurate. This will assist in the planning of the utilization of the resources. Furthermore, the membership dues must be correctly analyzed as a person may declare club membership with the payment of an initial deposit. The same individual may pay the other balance many months later thereby affecting the club's economy and budget implementations. This said, the club's financial manager should also never plan for any money that has not yet been received. Banking on unpaid money may affect the club's running and the credibility of the finance manager. For example, the club manager may state that the club would buy a club bus after a period of three months using the funds collected from the club's membership fees. However, the members may have
Like any other social activity, sports need to have some level of financial management. Financial management is essential for any sports body's survival (Watt, 2003). It also highlights the practice of good governance. Financial management of sports organizations or clubs entails the ability to review financial information and accurately manage funds. A good financial manager should possess the ability to implement proper financial practices that will be beneficial to the club in the long run. Additionally, the ability to understand the club's financial position or obligation will add the much-needed mileage in effective financial management. The aim of this essay is to analyze what is needed to be known about the financial management …show more content…
Furthermore, they should always act in good faith for the interest of the organization. On a broader analysis, the financial directors should know how to monitor all the business deals that relate to the organization. These directors should also have fingertip knowledge of the fundamentals of the club's business policies. The director should also be well informed about the club's activities and can assess the relevance or appropriateness of the club's business practices. Familiarity with the club's financial status through reviewing the club's financial statements is also very important. Being able to enquire into any financial matters related to the club should be part of the financial principles of the …show more content…
Sports clubs are no exception. Having a budget for a sports association is important as it assists in the planning of cash flow and financial reviews. Given the seasonal nature of operation of most sports organizations, it is imperative that some level of review is conducted to ensure that the club can pay its debts within the stipulated time. Furthermore, the budget will enable the club or sports organization to plan its financial activities for the given year. This will prevent impulse purchases and unplanned spending that may harm the economy of the club. While preparing a budget for the club, some important considerations must be assessed. For example, the timing of the club membership should be accurate. This will assist in the planning of the utilization of the resources. Furthermore, the membership dues must be correctly analyzed as a person may declare club membership with the payment of an initial deposit. The same individual may pay the other balance many months later thereby affecting the club's economy and budget implementations. This said, the club's financial manager should also never plan for any money that has not yet been received. Banking on unpaid money may affect the club's running and the credibility of the finance manager. For example, the club manager may state that the club would buy a club bus after a period of three months using the funds collected from the club's membership fees. However, the members may have