Table of Contents
- What is income budgeting
- Why use income budgeting
- How to set up a team income budget
- How to reconcile income
- Reconciling invoices
- Reconciling transfers and deposits
- Income Summary
What is income budgeting
With income budgeting, you can easily compare what you expect to collect with the actual funds collected for your team each season. This will not only allow you to view the expected income against your actual income, but you will be able to compare your team’s income against your team’s expenses.
Why use income budgeting
On top of collecting regular team fees from your athletes each season, we know that fundraising is a big part of youth sports. If your club is a non-profit organization, it is important that income is tracked properly, especially when it is fundraising and sponsorship money, in order to maintain tax-exempt and 501c3 status.
Keep detailed income reporting for tax filing purposes
Ensure fundraiser and sponsorship money are allocated appropriately
Track team and club income against expenses all in one place (Goodbye spreadsheets!)
Enable transparency between the club and your families
How to set up a team income budget
You can access your Income Budget by going to your team page > Budget tab > Income Budget Items. By default, we have added the budget item Team Fees under the budget category Member Dues. This represents the general fees that you are collecting from the players on your team.
To add a budget item, select Add Budget Item and fill in the details for your budget item. The amount will represent how much you expect to collect and the date can be when you expect to collect the funds. If you are unsure about the exact amount or date, no worries - just give a rough estimate for now! You can always edit these details later.
Note: Budget categories are set from the club account. If you are unsure which category your budget item falls under, or do not see the appropriate category, reach out to the club admin directly for guidance.
How to reconcile income
Whether you are adding invoices to the payment schedule or adding invoices to a specific player, you can select the income budget item that the invoice will be reconciled to. This means that when the invoice is paid by the parent, the funds collected for the invoice will be automatically reconciled to the income budget item you select.
By default, new invoices are set up to reconcile to the budget item Member Dues - Team Fees. However, if income from an invoice falls under a different budget item, this can be easily selected from the income budget dropdown. For example, if there are funds from a fundraiser for a certain player, you can select the appropriate income budget item for it: for example, Fundraising - Fundraiser Event.
Reconciling transfers and deposits
If the team has received income from a transfer or mobile deposit, it can be reconciled to an income budget item. On the Team Banking tab for the team, you can use the dropdown menu on the right of the transaction item to select Reconcile to Income. You can apply the funds to a single budget item or multiple items for specified amounts.
If some or all of the funds from a transfer or deposit must be applied to a player’s invoice, you will need to Apply to Player Invoice first before reconciling as income. Applying the funds to a player’s invoice will reduce the amount the player owes for that invoice (or if it covers the payment in full, it will mark that player’s invoice as Paid). After you select the player and the invoices you’d like to apply the funds to, you will be able to reconcile them to their appropriate budget item.
You can also view and edit the income reconciliation from the Team Banking tab - simply use the dropdown menu on the right to edit it.
The Summary provides a visual of the budgeted amounts against the actual amounts for the team’s income and expenses as they are being reconciled. With the net totals at the bottom, you can quickly determine if the budgeted/actual income exceeds the budgeted/actual expenses for the season.
For increased transparency, you can enable the sharing of this budget summary with parents. This can build trust by providing them an overview for how funds are spent and collected.