If you want to find out more ways to optimize your fitness-based business and improve your cash flow, the team of professionals at Enkel can help. We know how important it is to have a detailed perspective of your business, and we can provide you with the assistance you need to enable it to run smoothly. Forecasting is essential for all aspects of your business, but it can be especially helpful when looking into the future health of your cash flow.
Just as you wouldn’t bench press your max weight without a spotter, you don’t want to embark on managing your accounting needs without support. They can assist with implementing technology that brings efficiency to processes like accounts payable, payroll and commission reporting as well as integrations with customer relationship management systems. These enhanced month-end financials give you a holistic view of the health of your company with details you can understand.
Charge membership fees at the start of the month
Accounts payable is the opposite of accounts receivable because it is the record of money that you owe to others. By keeping track of all the money you owe, it is easier to make sure all your bills and invoices are paid on time. The cash-basis accounting method records monies at the time it is spent or received. Yes, cash accounting is better for understanding cash flows, but accrual financials help others outside the club better understand the financial viability of the club. For example, if a club owner is looking to obtain financing, it will be helpful to have accrual financials to show to a bank.
- Many gym business owners start up out of their passion for fitness and helping people live healthy lives.
- With Bench, get your bookkeeping, income tax prep, and filing done by professionals—powered by one robust platform.
- After deciding on criteria for evaluating the software and then researching the app itself, we tested the app, noting its strengths and weaknesses.
- And with all that managed to perfection, your accountant just might shed a tear of joy preparing your financial statements.
- Receipts can simply show what you have bought for the gym and how much you have spent.
There are some other records you may need to maintain, depending on your business, such as accounts receivable ledgers and accounts payable ledgers. Gym finances can make or break a fitness business, especially for new gym owners who don’t have a background in business or finance. Many gym business owners start up out of their passion for fitness and helping people live healthy lives. Unfortunately, these skills don’t necessarily help with financial management. Gym owners need to take the time to ensure that the gym’s finances are in order to ensure that the business keeps running.
Bookkeeping 101: Basics for Beginners
This is where strong cash flow reporting can help guide the owner(s) to make timely decisions based on the current cash situation. A financially healthy fitness club requires a healthy fiscal regimen rooted in discipline and routine. Like a personal trainer, an outsourced bookkeeping and controller services provider can give you the expertise and structure required to keep your finances in shape. Gym Bookkeeping As the owner of the gym, your primary focus is oftentimes on the health and fitness of your clients and not a bunch of accounting numbers and bookkeeping paper. It is most of the time too confusing and time-consuming to properly keep your gym business books. You should be able to keep track of the day-to-day transactions, and have a preliminary general ledger ready for your accountant.
Then, you find that you have forgotten to register one payment in the ledger. After identifying that missing transaction, you have to enter that transaction into the ledger for a balance between earnings and expenses. As a gym owner and a bookkeeper, you have to record each and every detail of the transaction. You maintain records of all these transactions in journals and ledgers so you can tally each transaction in case any tax issue appears. The allure of aesthetically pleasing gym management software can be deceptive if it lacks the capability to delve into fine details.
Qualifications and Experience
Your ‘list’ is created to meet your unique needs and the accounts listed therein represent the five typical financial buckets of most businesses as listed above and can be customized for your exact needs. Revenue, also called income, is any money earned by your business either through products sold or services rendered. For now, let’s demystify the five – yup, just five – basic account types necessary for bookkeeping. Learn more about the similarities, differences and responsibilities of bookkeepers and accountants here so you know when to hire each.
Finally, if accounting is too much for you to handle, hire a bookkeeper and/or tax professional to help. Using a platform like Exercise.com can help automate some of these processes, especially regarding revenue tracking. In most cases, with a little study and familiarization with your bookkeeping software, you should be able to manage your most basic financial records without the help of an accountant. This includes the daily recording of transactions, maintenance of a general ledger, and maintenance of your cash records.
This can include payroll, marketing/advertising, outsourcing, merchandise, events, maintenance, and more. It is always better to overestimate your expenses and underestimate your income. If you use independent contractors for to populate your gym with coaches and personal trainers, the money you pay them is not considered payroll. However, you should still keep a record of the money they are paid as a business expense. To help you better manage cash flow, read the following sections carefully.
- It will also give you the advantage of more meticulous cash flow management and build stronger credibility and professionalism with your business.
- Like any good regimen, it is important to make your plan and stick with it to see results.
- Furthermore, you also have to check the transactions from various membership tiers on a regular basis.
- In order to have a viable and valuable company, revenues must exceed expenses.
- Gym owners need to take the time to ensure that the gym’s finances are in order to ensure that the business keeps running.