How to Develop a Monthly Budget for Your Community Center

Developing a Monthly Budget for a Community Center

A well thought out budget is essential for a new community center. Not only does it keep your business financially feasible, but it is also a critical management tool for analyzing the health of your company. No business should run without a working budget. But how do you go about creating a flexible working business budget? Today, the SFM team will discuss some ways you can put your monthly budget to work for you.

Gather Your Community Center’s Income Sources

The first step to your community center budget is to calculate your projected monthly income. Start with your sales figures and any other sources of income. Determine factors like monthly memberships, concessions, and ticket sales to events.

Determine Your Fixed Costs

Next, you need to determine your fixed costs. Your fixed costs include expenses that are charged each month at a set rate. This is often the easiest step, requiring you to go through your past statements to gather your costs. Examples of fixed expenses include rent, utilities, salaries, and health care costs. Just total these expenses to arrive at your monthly fixed costs.

Estimate Variable Expenses

Any expense that doesn’t have a fixed price each month would be considered a variable expense. Many of these costs can be scaled up or down depending on the state of your business and income. If your business is more successful than your monthly projections, you can often reinvest this money into variable expenses to promote growth.

Schedule Large One-Time Purchases

Once you have calculated your income and expenses, you should have a rough monthly budget. Now is the perfect time to factor large one-time purchases. While some of these expenses may come as a surprise, like an emergency repair, others will be investments that you can budget months in advance.

Bring All the Elements Together

At this point, you have a rough monthly budget for your community center, with planning for large and unexpected expenses. Your next steps are to refine and adapt your budget as needed. Break down each of your costs into individual categories to better understand where your money is going, where you’re losing money, and ways you can improve.

Trust Sports Facilities Management for Your Accounting

Outsourced recreation management could be the most important step you take for your community center. Municipal community centers and sports complexes benefit from a partnership with SFM and our national network of facilities and our industry expertise. To learn more about SFM, contact our team today at 727-474-3845.