chapter  3
20 Pages

THE MECHANICS OF FINANCIAL ACCOUNTING

You already know that every type of sports organisation, large or small, will produce a set of financial statements. In Chapter 1 I told you that the aim of Part 1 was not to teach you how to be an accountant, so you have probably got another question for me: Why have I included a section on the mechanics of financial accounting? The answer to this is twofold. First, because many of you will have to use financial information and when doing so you may need to trace where certain facts and figures have come from. Second, because many of you studying courses related to sport management and sport business management will be expected to have an understanding of how financial transactions are recorded. Looking beyond academic expectations, we believe it is a useful skill to have and one that will increase your employability. Just imagine how impressive it will be when you attend a job interview and can demonstrate that you have a sound understanding of financial management. The information included in this chapter and Chapters 4, 5 and 6 will help you to understand the technical issues that are fundamental in the learning process and that will facilitate your understanding of financial statements.