A rugby club, like any organisation, cannot operate without effective rules and regulations surrounding finance. It is very difficult for a rugby Club to make money, but it is very easy for a club to lose money.

Although clubs operate on a not-for-profit basis, appropriate good financial management practices will ensure that there are adequate resources to meet objectives, remain solvent and continue to support the community.

Some basic checks to ensure that your club operates their finances are:

In regards to solvency, ensure the club:

• can pay all bills when due?
• has adequate funds in the accounts for scheduled expenses?
• can fund all its program and other contractual obligations?
• reviews its cash-flow forecasts identifies any variances and notes potential impact on solvency

When budgeting, ensure:

• all expected income and expenditure are included
• all sources and amounts of income are identified
• all expenditure included in the budget is approved by at least two committee/board members
• expenditure is not greater than income
• the annual budget is approved by at least two committee/board members
• there is a regular review of budget to actual results (monthly, quarterly)
• the impact of any variances from budget to actual are identified and explained
• the budget is amended where material changes have occurred that impact original budgeted income and expenditure

In regards to financial statements, ensure that:

• appropriate record keeping is maintained
• key financial accounts are regularly reconciled
• there is regular reporting of income and expenditure, balance sheet, cash flow statement, budgets and forecasts
• financial statements are audited annually
• the balance sheet is reviewed in order to assess the financial health of the club
• appropriate financial controls are in place for accurate records

In order to prevent fraud and mismanagement, ensure:

• controls are in place to safeguard assets
• money is used in line with approved budgets
• controls are in place for approval of spending by the board/committee
• controls are in place for banking transactions and monitored by at least two board/committee members

The rugby club should be using a cloud-based accounting software package which is linked to their bank accounts. This software should be accessed by at least two people on the committee (Treasurer and at least one other) so that there is oversight on any and all transactions.

Some popular accounting options for clubs and associations include Xero, Quickbooks and MYOB.