REGULATORY FRAMEWORKS IN SPORT
You will need many facets to be a good financial manager. The first is to be systematic and considered when running an organisation and to provide sufficient resources to ensure that the ‘books’ are kept up to date. The second is to appreciate the difference between financial reporting (the material we are going through at the moment) and financial management (the material we go through in Part 2). This will ensure that you have correctly ‘reported’ data on which you can make management decisions. The third is that you become financially literate. In essence this means that you will be able to understand and speak the language of accounting and financial reporting, and, perhaps more importantly in my opinion, be able to accurately interpret financial documentation (such as the income statement and balance sheet that we briefly examined in the previous chapter) and prepare financial material such as budgets, project evaluation reports, costing and pricing strategies, and the main financial statements. The need for all of these skills is now more important than ever when you consider the current issues and blame that can be associated with the legal position of an organisation (just look at what happened with Portsmouth Football Club in the early part of 2010 as an example). As a twenty-first-century manager you need to know where you stand.