Proper bookkeeping is an essential element of running a club properly because it ties into virtually all other areas of the business and often drives decision making throughout the course of the season. However, bookkeeping is often overlooked because it’s something no one really enjoys and because there are often so many other priorities that come before this function. In addition, it can be difficult to find a bookkeeper worth their salt in your specific area that won’t charge you an arm and a leg for these services. In this blog post, I’ll outline the most important aspects of bookkeeping and develop a few strategies on how to successfully handle the important elements of this function.
Most everything to do with proper bookkeeping starts with making sure your bank reconciliations are done with zero errors. Bank reconciliations deal with the process of making sure your accounting software (ex. Quickbooks Online, Freshbooks, Xero) matches what your bank reports to you on monthly statements. Bank reconciliations take place when someone meticulously goes through the bank statements (or in today’s world the sync with your bank’s operating account) to make sure your accounting system matches what is on the bank statements. In addition, a good bookkeeper properly records all of those transactions within the appropriate account so a club director can build proper financial statements. Prior to the advent of cloud computing, this function required the resources of someone actually sitting in your offices to handle this type of workload. However, with cloud based computing it’s possible for you to designate an “admin” that can work remotely to handle bookkeeping tasks like bank reconciliations.
Reconciling A/R and A/P
Reconciling Accounts Receivable (“AR”) and Accounts Payable (“AP”) deals with the process of updating the accounts for those that owe you money and those you owe money to. For example, some club directors want to see what monies are owed and from what athletes so they have a running record of each account. With respect to accounts payable, those accounts deal with anyone you as a club director may owe money to for facilities, rentals or various other expenses associated with running a club.
It’s important to comment on one specific case that clubs often run into, and that’s the ongoing follow up that’s required with parents that miss a payment, have a card get declined, or need a custom payment schedule. This type of work often falls to the bookkeeper or staff and is incredibly important and time consuming. A big part of reconciling the accounts payable of a club is handling ongoing interactions with parents otherwise a club inevitably leaves a substantial amount of money on the table in uncollected funds. It it often difficult for a part-time bookkeeper to handle the ongoing nature of this type of work because a parent expects to be able to get in touch with someone 5-6 days per week during business hours (and sometimes before or after business hours). To learn more about all that is required to collect at a high rate please check out this blog post entitled “A Problem, A Solution…A Newbie’s Guide,” which will help you better understand the 8-step process that must be followed closely to collect the money you’re owed.
Handling The Bills (aka, Accounts Payable)
A solid bookkeeper or staff is also responsible for actually making sure payments are sent out via check, ACH, online banking or however a club director chooses to make payment. This is often a time consuming, ongoing task that requires someone to stay on top of payments and also update the accounting system so that everything is recorded properly. Payments, as commented on above, could be for facility rentals, payroll or any number of vendor payments required throughout the course of the season. An average club could have as few as 5-10 payments during offseason and as many as 45-50 not including payroll during peak times throughout the year. Many companies of scale often have dedicated teams devoted to AR and AP, but that’s not usually necessary inside a volleyball club. However, it’s important to make sure at least one person has AP on their radar daily or weekly depending on the needs of the club and any time sensitivities around paying for tournaments, etc.
How Much Work Is Required
Depending on the size and complexity of a club, the bookkeeping work can be handled in as little as a few hours per week. However, as a club grows in size and complexity the need for full-time bookkeeping work becomes critical. The amount of time to handle the bank reconciliations, reconcile the AR and AP accounts, make sure the bills are handled and any other administrative work that needs to be done certainly adds up quickly.
Schedule a demo with PaidUp today to discuss your personal situation and how we deliver these solutions to your club. Setup and integration is quick and we can be up and running for the upcoming 2018-2019 season. Call 512.518.4943 or email email@example.com today!
About the Author
Allan is the father of three boys who are big time travel lacrosse players. As a father and CEO of PaidUp, he totally gets what club directors and parents face every day as we try to provide the best for our children. Allan is also a recovering banker so he grew up (professionally speaking) helping small businesses thrive! Don’t hesitate to pick his brain how to run a great club! Allan can be reached directly at firstname.lastname@example.org you can schedule a time to connect by clicking here: https://paidup.as.me/.