Why do sports administrators need to know about financial management?

Fitness & Sport Management Blog

A sound financial management system enables sports administrators to accomplish important big picture and daily financial objectives. A sound financial management system will help the sports administrator to become a better macro-manager by allowing them to:

  • Manage proactively rather than reactively.
  • Borrow money more efficiently. Not only can they plan for their financing needs but sharing budgets with the sporting organisation’s banker will assist in the loan-approval process.
  • Provide financial planning information for investors.
  • Make the sporting operating more profitable and efficient.
  • Access a fantastic decision-making tool for critical financial considerations.

Financial planning and control help the sports administrator to become a better micromanager by enabling them to:

  • Avoid investing too much money in fixed assets.
  • Maintain short-term working capital needs to support account receivable and inventory more efficiently.
  • Set sales goals. You need to be growth-oriented and not just an ‘order-taker’.
  • Improve gross profit margins by pricing your services more effectively or by reducing supplier prices, direct labour, etc., that affect the cost of goods sold.
  • Operate your businesses more efficiently by keeping selling and general as well as administrative expenses down more effectively.
  • Perform tax planning
  • Plan ahead for employee benefits
  • Perform sensitivity analysis with the different financial variables involved

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A financial assistant to assist the sports administrator

Being a sports administrator, and in charge of a sports club, is a massive job and quite time-consuming. This means that you may want to hire someone, like a financial assistant, to help you in the running of the club’s finances.

A financial assistant is typically someone who provides a combination of administrative assistance and financial help to his or her co-workers.

A financial assistant will typically have more knowledge about finances and accounting principles than most administrative assistants and may be responsible for running reports or checking data in addition to administrative tasks. Otherwise, this individual will also be responsible for tasks such as answering the phones, greeting clients and scheduling meetings or appointments among other typical office duties. Many businesses will hire a financial assistant to work in their payroll or accounting departments.

If you want to hire a financial assistant, here are some things that you can expect them to do:

  • To investigate and answer routine queries arising from budget holders, management and other financial staff as well as external bodies.
  • To be aware of the policy and relevant legislation concerning client confidentiality and communicate appropriately.
  • To develop and maintain a good knowledge of the process and procedures and the accounting system relating to the activities of a section of the finance directorate.
  • To have knowledge and awareness of the application of relevant national accounting standards.
  • To attend finance meetings and document key information and decisions as required.
  • To apply basic accounting knowledge and techniques to all areas of work, including the production of journals, routine costing and variance analysis.
  • To perform financial calculations to support business transactions relating to a section of the finance directorate
  • To analyse necessary financial information in response to queries from managers, suppliers and customers
  • To identify and resolve errors and discrepancies
  • To be able to process high volumes of information while also evaluating the data’s relevance for inclusion in costing and other reports.
  • To plan, organise and manage own workload to ensure your contribution to monthly financial reporting process is achieved in a timely and accurate manner.

Contact Trifocus Fitness Academy

Do you want to become a sports administrator? If you do, then you need to have completed our Sports Administrator Course. For more information, please follow this link.

 Trifocus Fitness Academy Sport Management registration