Like all businesses, your club can benefit from a periodic review of its operations.  Such reviews can help identify areas of opportunity for improvement that ultimately can lead to more satisfied members and better bottom line results.  The review can encompass all areas of club operations or target specific departments that have been identified as needing special attention.  From our experience as accountants and consultants to the hospitality industry in general and clubs in particular, we have noted the following areas of club operations where such reviews can have significant positive impact:

• Food and beverage operations; even if your club is a non-profit organization, there is no reason the restaurant can’t improve its operating results and service to members.  It is important to garner member feedback at all times as you review your hours of operations, employee staffing guidelines, restaurant concepts, menu pricing, etc.
• Accounting office operations; it is much easier to assess your club’s results of operations if you are using the industry standard “Uniform Systems of Financial Reporting for Clubs”.  This financial reporting system (which is about to be updated for 2013) enables you to compare or “benchmark” your results of operations with other clubs and industry data which can help you determine what areas of club operations need attention.
• Tax status; whether you are a taxable or tax exempt club, a review of the applicable IRS guidelines and record keeping requirements can help you stay compliant.  Additionally, your club will want to be certain it is benefiting from applicable tax credits and deductions against otherwise taxable investment or non-member income.
• Payroll issues; is your club compliant with current federal and state laws governing fair labor standards (wage and hour) or independent contractor classifications?  If your club compensates service employees via tips or gratuities are you taking proper advantage of tip credits or the worker’s compensation insurance exemption on excess tips that is available in some states?  Additionally, are your club’s service charges subject to sales tax in your state?

Fortunately, all these questions and issues can be easily dealt with by conducting an operational review.

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