In: Accounting
9. Describe the budgeting process for a sport organization. Identify and define all relevant terms
Answer: Budgeting- Budget is a forecast of income and expenditures.
Budgeting process for Sports organizations-
Identify the goals- First of all sports organization should identify its short term goals that are in pipe line, what sports they are going to conduct in another 6 months to one year, what is their goal behind conducting the sports and at what level they are organizing sports, whether it is state level, national level or international level.
Identify Income and expenditures- Sports organization should identify its source of income that can be sponsorships, help from Government and Non for profit organizations. They should also forecast their expenditures that may be; Training & development of players, sports kit, lodging and fooding, travelling expenses, salaries of coaches etc.
Making final budget- After setting goals and analyzing all the needs, budget should be prepared for a certain period of time. Budget can be prepared on spread sheets, budgeting software can also be used for preparing budget.
Comparing actual results to the budgeted results- After the actual income and expenditures are known, they should be compared with the budgeted income and expenditures and variance should be known, if expenses are increasing, they should be reduced.