Real Time Accounting - A Compelling Best Practice for Club Profitability
In tracking a department’s numbers in real time, a manager must understand that this data will provide an approximation of actual performance, not the exact accounting of double-entry bookkeeping used by the accounting office to balance the general ledger and prepare financial statements. This approximation in no way detracts from the benefits of real time accounting and the ability it provides to make timely interventions.
If department heads owned their individual operations and had their own money at risk, be sure they would move heaven and earth to use a real time accounting of their revenues and expenses, to ensure its success. While they don’t own their club department, they are being compensated to run it professionally and demonstrate a proprietary interest in its successful performance.