Should the club use the Cash or Accrual accounting method?

Cash accounting records a business's income and expense based on the dates when monies have physically entered/left the business's back account. Accrual accounting records this activity based on the date that a sale or expense becomes due. The accrual method gives a more accurate picture of when the business is actually achieving its sales and expenses but it introduces the need for more careful cashflow management.

Most businesses use the accrual method, but some small businesses still use the cash method as they are driven more by simply what comes in and out of their bank. It may well be that your club has adopted the cash accounting method as it's simple and direct.

Through the use of member accounts, ManageMyMatch is adopting a cashless environment for members. Most activities (court fees, event fees, subscriptions etc) are paid out of a members club credit account which is periodically topped up by the member. This arrangement means that cash payments into the bank (i.e. the top-ups) do not represent sales and thus the cash accounting method is no longer feasible.

ManageMyMatch has all the tools and reporting to support the accrual accounting method and it is strongly recommended the club adopts this method with ManageMyMatch.