Whoever the defined leadership team is at a club, they will have a keen interest on monitoring financial performance, ensuring all transactions are recorded correctly in the accounting system, everything is accounted for, and the management figures presented are a fair and accurate record.

As with any business, there are numerous different methods and tools available to support clubs in assessing their financial health, all of which when used correctly contribute towards a more sustainable future. Often in isolation, these can present an inconsistent or inaccurate view, so its vital that each is considered on its own merit and then combined to provide more of an overall picture.

It’s also important to view these in relation to the strategic plan and make sure comparisons are made to the Key Performance Indicators (KPIs) that have been defined to monitor progress against targets.

As golf clubs rely on a wide range of goods and services to operate their facilities so they provide the best possible value for their members & customers, procurement is a really important aspect of their financial management. This refers to the process of acquiring these goods and services, and managing the relationships with the suppliers who provide them.

It is essential that appropriate levels of authority are given to management team members to allow them to do their jobs in a timely and efficient manner, but the awarding of valuable contracts and procurement of large value items needs to have appropriate levels of scrutiny and accountability, with Boards making final decisions.

By effectively managing this area clubs can ensure that they are getting the best possible value for their money, while maintaining high standards of quality and reliability and providing opportunities to re-invest in other areas which support the growth of the business.

Planning is a key requirement of any business and forecasting what the club’s financial performance will be is a challenging but essential task.  Working together, a club’s Treasurer/Finance Director and General Manager must create realistic and achievable budgets for the year ahead.

Longer term financial forecasting is also needed, especially when major investment for larger scale capital projects is being planned and/or funds needs to be raised.

Any financial plans will also be synced to the overall strategic direction for the club so they are aligned with all the initiatives and projects that are planned.

A well-governed golf club will have sound policies covering how financial decisions are taken, and should cover everything from banking arrangements, investment policies, borrowing policies and cash management.

These policies will clearly stipulate how the club’s finances will be managed, ensuring that both board/committee members and management team members are given clear direction and guidance.

A lot of these may fall outside of what is needed to operate on a day-to-day basis but will all support the club to be healthier, providing a safety net and reference point for the different financial challenges they may face.