Furthermore, you also have to check the transactions from various membership tiers on a regular basis. If any downfall happens in a gym membership, regular tracking allows you to predict the pattern and then outline the pricing structure accordingly. QuickBooks offers free bookkeeping training to understand the basics of accounting.
A great way to encourage members to join your gym is to offer them a discount to pay all of their yearly fees upfront as one lump sum payment. This helps secure all payments and is a great idea to draw in new business, especially if your gym is still new. If you decide to purchase all of your gym accessories, consider financing instead of paying for it all at once.
Handle accounts payable and receivable
At Bench, we understand the distinctive bookkeeping needs of gym owners. Every gym operates in its own unique way, dealing with membership subscriptions, hourly services costs, equipment depreciation, and specific industry tax obligations. These complexities can often lead to bookkeeping errors, misunderstandings, and the missed opportunity for crucial tax deductions. This includes understanding industry-specific write-offs, such as fitness equipment purchase and maintenance costs, trainer certification costs, or purchased fitness classes. Additionally, we strive to keep you in the clear with laws and regulations surrounding employee classification, which is a common issue in the fitness industry with independent contracting trainers. We are also able to handle sales tax issues surrounding your merchandise sales.
Following a standard month-end close regimen with a coordinating schedule ensures everyone understands when the data is accurate and ready for use. If you’ve never used accrual-based accounting, you should talk to a professional bookkeeping services provider or a CPA to ensure your plan is solid and will help your club get stronger. How should you manage finances as a gym owner (especially if you don’t have a background in finance or business)? Making the effort to learn the processes and actively participate in managing the gym’s finances will set you up for success. Know your budget, stick to it, and keep track of all expenses and income.
Finding Potential Gym Bookkeepers
To increase the number of accounts receivable, you have to track the revenue your gym makes based on the membership tiers. You have to ensure that your gym offers different membership tiers to attract different segments of clients. Thus, it enables you to increase the transactions from other clients and increase gym profitability. Say farewell to mounds of paperwork and tedious manual tracking—we automate data directly from your linked accounts. View the state of your gym business from one easy-to-understand dashboard. This allows you to pinpoint the health of your operation and make informed strategic decisions.
Here are the general categories in which you can categorize your gym transactions. Overall, a professional bookkeeper not only takes the burden of financial management off your shoulders, but also contributes significantly to the development of your gym business. This way, you can have continuous visibility of your gym’s financial performance and predict potential issues beforehand. Also, it helps you make better decisions as you can always have a complete set of financial information about your business.
Ditch the Paper and Cash
In the realm of a gym business, bookkeeping is the systematic recording, organizing, and tracking of financial transactions and records. It serves as the foundation for effective financial management, providing crucial Gym Bookkeeping insights into the financial health and performance of the gym. By maintaining accurate books, gym owners can make informed decisions, identify opportunities for growth, and ensure compliance with tax obligations.
Discover the essential steps to choose the best gym bookkeeper for your business. Many small business owners are more comfortable choosing a CPA as their accountant because, as a rule, they feel it assures them a high level of professional competence. Some non-CPA professionals may not always have as broad an education as a CPA, but a given individual might have the perfect accounting and tax expertise for your business. Once you receive your monthly bank statement, you need to reconcile the transactions on the statement with those posted in your ledger or accounting software. Anything of value in your business is considered an asset, including cash, resources owned by your business, like accounts receivable (A/R), balance, and inventory, computers, and furniture.
Moreover, you can categorize the payments of these employees as payrolls. Both accounts payable and receivable enable you to analyze whether your gym is on the profit train or cruising through a loss. As a difference, the payable and receivable accounts show the profitability of your gym. If the amount receivable is higher than the payable, it shows that your gym is on the profit train. However, if the payable amount is higher than the receivable, then it shows that your gym is cruising through loss. So, you have to handle payable and receivable accounts separately to get a clear insight into your gym’s profitability.
- Not only does moving to the cloud give you access to your financial data at anytime, anywhere, it also allows for easily collaboration with your accountant or other parties that need access to your books.
- An exemplary candidate will have a track record of treating sensitive information with utmost discretion and professionalism.
- Cash is hard to track and can lead to a lot of questions if you were to get audited by the IRS.
- Thanks to our modern world of online transactions and paperless banking, it is very easy to keep your finances digital.
- We then work with the app for at least a few weeks before deciding whether to recommend it to our readers.