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'Help for sports clubs & volunteers in Wales'
Club Finances

Cashflow forecast

Having enough cash to pay bills through the year is important for any organisation and your club is no different!

Even through your club may be profitable, if you run out of cash you will not be able to continue operating!

A tool to help you plan for having enough cash to see you through the year is a cash flow forecast.  Cash flow planning is particularly important given the seasonality of most sporting organisations and will help you determine if you have sufficient funds available to cover your cost at a particular point in time.

Points to consider when preparing your cash flow forecast:

  • Your cashflow forecast should be based on your annual budget.
  • Break down your budget into 12 months and factor in when you expect income to be received and expenditure to be paid.
     
    • Membership fees may be due in a certain month, but it may take another few months for the fees to be paid.
    • Some suppliers may provide 30 days credit before payment is due.
    • Some non-essential budgeted expenditure could be delayed if cash flow is tight.
  • Always ensure that there is a minimum balance in the bank for any emergencies that may arise and that you comply with your club’s reserves policy.

Once again, a spreadsheet is a good way to develop a cash flow forecast. If you’d find a template useful, please click here.