Start with a budget in program lines
Boards read reports by program, not by account number. Set the budget up the way members think about the club: each team, event or activity gets its own income and expense lines. Keep fundraising events separate from general donations and dues.
The layout below is illustrative. Replace the lines with your own programs, and have the members approve the budget at the start of the fiscal year.
| Line | Budget |
|---|---|
| Dues and family contributions | $9,000 |
| Business sponsorships | $6,000 |
| Concession stand sales | $22,000 |
| Concession stand supplies | ($17,000) |
| Spring raffle ticket sales | $5,000 |
| Raffle prizes and lottery tax | ($1,800) |
| Equipment for the program | ($9,500) |
| Senior scholarships (committee-awarded) | ($4,000) |
| Banquet and awards | ($5,500) |
| Bank, app and filing fees | ($700) |
| Planned change in cash | $3,500 |
What the monthly report should show
- Cash on hand at the start of the month, by account
- Income received this month and year to date, by program
- Spending this month and year to date, by program
- Year-to-date actual compared with budget, with a column for the difference
- Cash on hand at the end of the month, matched to the bank statements
- Money owed to the club and bills the club owes
- Any money held for a specific purpose, such as a trip deposit
- Upcoming deadlines: raffle filings, Form PC, 990-series return
- Decisions needed from the board
Attach the bank reconciliation, or say who reviewed it. A report that ties to the bank is worth more than a detailed one that does not.
A one-page report layout
| This month | Year to date | Budget (year) | Difference to budget | |
|---|---|---|---|---|
| Starting cash (all accounts) | $12,400 | |||
| Concession stand sales | $4,100 | $9,800 | $22,000 | On pace |
| Concession supplies | ($3,050) | ($7,300) | ($17,000) | On pace |
| Sponsorships | $1,500 | $4,500 | $6,000 | $1,500 still to collect |
| Equipment | ($2,200) | ($6,100) | ($9,500) | $3,400 left |
| Ending cash (matches bank) | $12,750 |
Building next year's budget from this year's actuals
- 1.Start from this year's actual income and spending by program, not last year's budget.
- 2.Remove one-time items, such as a single large gift or a replacement scoreboard.
- 3.Adjust each fundraiser for what you know is changing: fewer home games, a new sponsor, higher supply costs.
- 4.Budget fundraisers at their gross amounts with their costs shown separately, so gross receipts stay visible.
- 5.Decide how much cash the club should keep at year-end, for example enough to cover the first months of next season before fundraising starts.
- 6.Present the draft to the members with a one-line explanation for every large change.
Questions the board should ask
The treasurer should not be the only person who understands the report. These questions, asked every month, catch most problems early:
- Does ending cash agree with the bank statements, and who checked?
- Is any event behind its budget, and why?
- Are we holding money for anything specific, and is it set aside?
- Is any reimbursement or payment waiting for approval?
- What filings are due in the next 90 days, and who is doing them?
Money set aside for a purpose
Clubs often hold money that is already spoken for: deposits for a spring trip, a memorial scholarship fund, or a grant for specific equipment. Show these on the report as separate lines, not buried in the general balance, so the board does not spend money it has already committed. If a donor restricted a gift in writing, keep the restriction with the club's permanent records.
Keeping it simple for the next treasurer
Use the same categories in the bookkeeping software, the budget and the report, and save each month's report in a shared club folder. A new treasurer who inherits twelve consistent reports and a reconciled ledger can pick up in an afternoon; one who inherits a shoebox cannot.
Save the approved budget, each monthly report and the year-end report together in one folder per fiscal year. At year-end, that folder is most of what a preparer needs to start the 990-series return and Form PC.
Where we come in
Murphy can set up the club's books in program categories, reconcile each month, and produce the monthly report for the treasurer to present. We give you a scope and a price in writing before anything starts.
General information for owner-led businesses, not advice for your specific situation. Tax and accounting rules change, and how they apply depends on facts particular to your business. Talk to us — or to another qualified professional — before acting on anything here.
