As a CPA firm that audits a lot of city clubs we often get asked the question…how do we get more women to join the club and, more specifically, younger professional women?
Articles on the topic of food and beverage (F&B) losses come out so regularly they are like a bad record stuck on repeat. Sorry (I’m not sorry) to be perpetuating the trend. To put the concept simply, a club is going to lose money in F&B operations, just as it does in every other area, from golf to tennis to the pool. Even those that say they make a profit do not take into account the overhead costs not specifically allocated to the department.
Everyone knows that the bottom line rules the day. It has become hard to balance member expectations against the realities of payroll and other costs associated with maintaining a club so providing opportunities for members to spend more money inside the club is more important than ever. Merchandise bearing your club’s logo is one way to do this has and it has an extra benefit of free advertising.
Clubs are in the dues business. They are the key to a private club’s success. Dues represent approximately 50 percent of the operating revenue of country clubs and approximately 40 percent of operating revenue for city clubs. When you factor in that no direct expenses are allocated to dues, 100 percent of every dues dollar goes to the bottom line. However, clubs were reluctant to raise dues for several years – at least not enough to adequately fund club operations. Boards were reluctant to address the issue because they did not want to deal with any potential controversy surrounding it. Instead, they chose to pass the problem to their successors. And while some clubs have rebounded nicely from the economic down turn, especially the “A” level exclusive clubs, a combination of pressures on clubs has made it more important than ever to address the issue now:
Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) – issued February 25, 2016
For most non-public entities this update is effective for fiscal years beginning after December 15, 2019. However, now is the time to start thinking about longer-term impacts before entering into new leases over the next few years.
Following is an overview, for lessees, of this comprehensive and intricate standard.
Many establishments sell gift certificates which help enhance their overall revenue. However, many of these organizations do not know how to properly account for them on their tax returns or within the jurisdiction which they are issued. Here are some things that should be considered by enterprises that engage in gift certificate sales.