A Golf Financial Auditing Deep Dive
Numbers don’t lie.
Auditing golf club financial statements tells an important story about how efficiently a facility is being operated. Statements are not always easy to decipher given inconsistent accounting practices and coding procedures, but with enough persistence, the numbers always tell an objective story.
Getting into the numbers isn’t enough though.
What metrics and ratios are most important?
How does your club compare with other similar clubs?
Where are highest priority areas that will produce most immediate impact on the bottom line without sacrificing customer experience?
An intensive golf financial audit usually delivers immediate savings for most facilities
Many Don’t See a Problem Until Too Late
For instance, in smaller clubs with less than $2 Million in gross annual revenues, payroll exceeding 38% of their revenue figure is virtually a death sentence. These numbers change substantially when there is debt service, taxes, or other market circumstances involved.
Effective golf financial auditing along with industry statistical comparison reveals ratios and performance benchmarks that indicate the health of country clubs.
The problem is that only very rare is the case that decision-makers and hired staff have the time to roll up their sleeves and dig into the granular details.
Most club decision makers will have extensive breadth of knowledge when it comes to managing club expenses. The depth of their knowledge into each individual line item (or lack thereof) often leaves much that slips through the cracks.