Please Wait a Moment


#MemberMonday: Why You Should Care About Club Financial Statements

By Brandi McGrath Kong, Director of Member Services

Financial statements are some of the most important documents when it comes to the business of your Sertoma club. Unfortunately, they are also among the most misunderstood. 

As a leader in your club, it is your fiduciary responsibility to ensure that your club is consistently and accurately communicating its financial results to members, donors, government agencies and any other required stakeholders. So what exactly does that entail? 

First and foremost, you must familiarize yourself with the statements. Even when you are not the one responsible for preparing the statements, it is your fiduciary duty to do your due diligence and review them routinely and in a timely manner.

As you review them, you should keep an eye out for any patterns. Where is your club succeeding and what isn’t performing quite as well? Does your asset vs. liability ratio make sense? Do your payables and receivables seem consistent over time? Have you seen unexpected growth or losses in club investments? Pay attention to these things and make decisions that will ensure that the club’s finances are strong and where they should be.

You should also keep an eye on the club’s liquidity. Does your club have enough cash on hand to meet its liabilities? Financial statements should provide quantitative and qualitative information that illustrates the funding availability to meet general expenditures for at least one year in the future. 

Ask questions. If you don’t understand something, it’s your responsibility to have it clarified.

Keep track of the budget. Make sure that you are properly monitoring costs and expenses without micromanaging. 

Finally, don’t forget to look for new revenue sources, examine any existing ones and keep an eye on rising costs that impact how your club does business. 

Author’s Note: This is an excerpt from Sertoma’s longer video, A Guide to Your Club’s Financial Statements