We know that the greatest success of successful sports clubs is not only on the pitch, or on trophies won, but also on their ability to manage their finances. For this reason, in this article we are going to explain to you step by step the process you have to follow to manage the accounting of your Sport Club, in order to optimize its functioning.
The first thing you have to know to manage the accounting of your Sport Club is that before 2014, only the Sport Clubs, which benefits did not exceed €100.000, had to submit their accounting to the Treasury. After 2014 the Treasury changed the game rules and, from the 1st January 2015 all the Sport Clubs have to submit the annual balance to this organization. In short, regardless of the income, partners and size of your association, you must record the relevant economic balance every year.
5 Steps to manage the accounting of your Sport Club
Due to this change of policies, it is necessary that your association is informed about it to organize the economic balance. It has to be submitted to the board of directors of your club and then, through a general assembly, to all the partners of the organization. To make this process easier we introduce to you 5 steps to help you not lose sleep with the submission of the accounting to the Treasury at the end of the year.
1. Do a receipt for everything
While it is true that all sports clubs are non-profit organizations, it is also true that this does not mean that they should not file an invoice for their income and expenses. For this reason, every commercial process done in the club (monthly pay to partners, workers salary, promotion, receipt of economical awards, etc.) must be accompanied by their respective invoice.
Being very cautious, organized and sharp with this function will help you to save yourself from headaches during all the organizational process of your annual balance. So just be sure to not only count with the largest quantity of invoices, but also to safely store them with discretion.
2. Divide your Invoices
Being a non-profit organization can also have some advantages when you have to manage the accounting of your Sport Club. One of them is that there are some type of invoices that are exempt from VAT. The receipts you do not have to pay taxes for are connected with all the operations related with management. For example, for the donations and payments to the partners, your club is exempt from VAT.
On the other hand, when managing the accounting of your club, you have to be aware you have to pay taxes for all those activities that bring your organization economic benefits and extras as a non-profit association. Some of the operations, that require the submission of the VAT on the invoices, are about money coming from donations of people that are not connected with your association, third-party promotion payments, bars economic incoming, restaurants or any other commercial activity that builds up in your club and money received as some competition award.
3. Update your heritage
If your Sport Club, no matter how long it has been operating for, presents a constant growth, it will probably have to expand the list of assets. This includes all the materials goods of your organization. For this reason you have to keep the information updated. Some of the assets your Sport Club could have are its headquarters, transport, stadium or sport city.
Be aware that forgetting or not including some assets of the association can bring to severe legal sanctions and significant economic fines. Besides affecting the functioning of your association can tarnish your reputation.
4. Repeat the process monthly
This is one of the best tips, something obvious, but that will help you with the annual balance of your Sport Club. For this reason we insist telling you to be aware every month and organize all the invoices, save them, divide them, keep your assets list daily upgraded and do a monthly balance. This way, at the end of the year you will only have to join all the monthly reports, and if it is missing, add the relevant information.
5. Submit the annual corporate tax balance to the treasury
As we have explained through this article, since 2015 you must submit a monthly balance with all the accounting information of your Sport Club at the end of each year. You also have to record this report with your annual corporate tax balance to the Treasury.
This process can be way easier if you can count on sector professionals that beside advising you, could also help you with the management of all this information. This is why we developed Syltek, the most innovative software that among others will help you to manage the accounting of your Sport Club. The efficiency of this platform has gained the preference of more than 600 Sport Clubs in 15 different countries.