No matter whether you have past experience or knowledge with finance and accounting, you can use this software quite easily. QuickBooks offers online and cloud-based desktop options as well, so the key is to choose a solution that fits your gym accounting needs. Their basic packages can help you track income and expenditures as well as manage bills and invoices. QuickBooks from Intuit is a globally popular brand for small business accounting software. While it is not exclusively designed as gym accounting software, you may consider this solution if you are looking for a big name in the world of business accountancy programs. When you start a new business it might be easy to just pay for all the startup costs and expenses out of your personal account and then figure it out later.
Additional revenue streams can come from personal training sessions, group classes, merchandise sales, and ancillary services like spas or cafes. Wisdom Shared by Fellow Gym Lords Receiving recommendations from other industry professionals can be invaluable when seeking a competent gym bookkeeper. Reach out to fellow gym owners or managers and inquire about the bookkeepers they have worked with. Outsourcing your bookkeeping process is an excellent decision for your gym or fitness studio. It will give you the assistance of a well-trained professional while freeing up your time so you can focus more on the health and wellbeing of your clients.
Cost Efficiency
The structure of your business, such as whether it’s a sole proprietorship, partnership, LLC, or corporation, can have significant implications for your accounting and tax requirements. It’s important to select a structure that suits your business needs and provides the appropriate level of liability protection. The average revenue of a gym can vary widely based on size, location, and services offered. Smaller gyms might make $100,000 to $500,000 annually, while larger chain gyms can earn millions. If you are working with an external bookkeeper, you need to ensure that the person you select is responsive and easy to get in touch with. They must be able to support you and your business in a timely manner, despite their remote location.
At a gym, monthly dues that are prepaid in January are deferred revenue, earning 1/12th of that revenue each month. If you pay a full annual insurance invoice in January, for example, you should allocate one-twelfth of that expense for each month throughout the rest of the year. Recording your revenue https://www.bookstime.com/articles/double-declining-balance-method and expense in this manner reflects the true financial strength of the company. Much of that membership revenue arrives around the beginning of the year, thanks to New Year’s fitness resolutions. A financially healthy fitness club requires a healthy fiscal regimen rooted in discipline and routine.
Identifying common expenses incurred by gyms
If, however, you still feel overwhelmed, perhaps outsourcing is the right choice for you and your fitness business. This will allow you to spend more time focusing on your clients and will leave your bookkeeping in the hands of an expert. Accounting and keeping your books in order can be confusing, time-consuming, and downright frustrating. Well-organized books ensure that you have access to accurate and up-to-date financial information, help Gym Bookkeeping you make sound business decisions, stay compliant and prepare in advance when tax season rolls around. At Supporting Strategies, our experienced, U.S.-based professionals use secure, best-of-breed technology and a proven process to provide a full suite of bookkeeping and controller services. Accrual accounting aligns with a deferred revenue model and records income during the month when you earn it, not the month when you receive it.