Accounting for a small sports club - help please

[Steve Flanagan]

I have been asked to become treasurer of a small local sports and
social club (less than 100 members).

Our main income is obviously from yearly subscriptions and profits
from our bar area. We also have a snooker table which members use via
a light meter and a fruit machine which also provides some small
income.

There is a steward who receives a wage from the club and mainly deals
with serving behind the bar, but also some other admin duties (paying
cash into the bank, etc).

The club owns the building it is based, and has a small loan from a
bank.

My main questions are:

In what format "should" (as far as I am aware there are not set
standards here in the UK for social clubs) the yearly accounts and
balance sheet be shown. I believe that the format used in the past
may not provide the best information to the members.

Also, we obviously pay the VAT element of the bar sales to the Inland
Revenue whilst claiming VAT back from bar supplies purchased. Should
I show the gross amounts in the "Bar Trading Account" and then show
VAT paid to the Inland Revenue in the Expenditure section of the
"Income and Expenditure Account" or should everything be shown
irrespective of VAT? My feeling is that it doesn't make all that much
difference - but I could be wrong on this.

In respect of income from the snooker table and the fruit machine,
should these be shown in the "Bar Trading Account"? If this is a
matter of decision and we decide to do so, should the "Bar Trading
Account" be re-named "Trading Account"?

Whilst paying the steward, the cost of wages is included within the
"Bar Trading Account" as an additional expense, however, should the NI
contributions paid by the club be also included, or should these be
shwon in the "Income and Expenditure Account" under a separate
heading?

Finally, does anyone know of a website or such that provides a basic
format of reporting such accounts?

Many thanks in advance

Steve Flanagan

 

[_]

It seems to me you would be foolish to take on this responsibility, with your current knowledge and experience, without first talking to the club's accountant.

 

[Steve Flanagan]

I am currently studying for CIMA, and have worked as a Management
Accountant and Auditor for the past ten years - however, this is the
first time I have been asked to become treasurer of a social club and,
obviously, I want to make a good job of it, which includes providing
the members with "informative" accounts which was the main reason for
my post.

The club itself does not have an accountant as the treausurer role has
been filled by members who have a basic knowledge of book-keeping
rather than year end accounts. The format in the past was to show how
much money came in during the year and how much went out - and the
balance was the "profit" (surplus of income over expenditure - in most
cases). However, my feeling is that the accoutns do not present the
members with enough information - which as I have said before is the
reason for my post.

Can anyone else help?

Cheers

Steve Flanagan

 

[Duane Bozarth]

I am currently studying for CIMA, and have worked as a Management
Accountant and Auditor for the past ten years - however, this is the
first time I have been asked to become treasurer of a social club and,
obviously, I want to make a good job of it, which includes providing
the members with "informative" accounts which was the main reason for
my post.

The club itself does not have an accountant as the treausurer role has
been filled by members who have a basic knowledge of book-keeping
rather than year end accounts. The format in the past was to show how
much money came in during the year and how much went out - and the
balance was the "profit" (surplus of income over expenditure - in most
cases). However, my feeling is that the accoutns do not present the
members with enough information - which as I have said before is the
reason for my post.

Can anyone else help?

Well, what additional information do you think the members want/need?
Don't see that there's anything for it but to sit down and decide what
it is you think is useful and present it. Of course, as soon as you do,
you'll then have to create a bookkeeping set of accounts that will
provide sufficient detail to generate the reports. Depending on the
size of the club, simply knowing that they're covering costs with a
little to spare may be all that anybody really cares about. If it's a
really decent-sized organization (or there's any hint of either a
problem or the income <doesn't> cover expenses) there may be reason to
be more fussy.

 

[Alan]

Well, what additional information do you think the members want/need?
Don't see that there's anything for it but to sit down and decide what
it is you think is useful and present it. Of course, as soon as you do,
you'll then have to create a bookkeeping set of accounts that will
provide sufficient detail to generate the reports. Depending on the
size of the club, simply knowing that they're covering costs with a
little to spare may be all that anybody really cares about. If it's a
really decent-sized organization (or there's any hint of either a
problem or the income <doesn't> cover expenses) there may be reason to
be more fussy.

VAT is payble / recovereable form Customs & Excise not Inland Revenue
and is a Balance Sheet item not P&L - what accounting package do you
use to record income & expenditue?

 

[e98fab]

Try some simple treasury software

Like MoneyMinder or Treasure Ease. Should take care of most of that for you, and you'll get the reports you need to the right person.

Good luck
Efab