In order to be able to run a club successfully, it’s important that you keep track of your finances.
As you run your clubs are run for your members, the funds you have are actually held on trust for your members. You must therefore, report to your members on your funds and how you use them.
Each year for your AGM your treasurer should produce:
- Statement of Income & Expenditure for the previous financial year
- Statement of Financial Position for the previous financial year
A statement of income and expenditure is a financial statement that shows you the club’s income and expenditures. It also shows whether the club is making profit or loss for a given period.
A statement of financial position also known as a Balance Sheet represents the Assets, Liabilities and Equity of the club at the end of the financial year.
Your financial year end date should be specified in your constitution.
Examples of both are attached below.