These periodic audits will allow you to catch any issues before a larger problem arises. Keeping records is only helpful if you know how to read them and analyze the information. Audits normally happen and if you keep all of your receipts and invoices, you will be prepared for them with peace of mind.

It may seem like a challenge to keep a positive cash flow with all of these expensive costs, but by following a few easy tips, you can optimize your cash flow and experience greater success. Cash flow is about forecasting and ensuring Gym Bookkeeping available liquid assets to support operations during slower business periods. It involves strategic planning to avoid cash shortages, considering investing in equipment, and hiring decisions based on current financial standing.

Bookkeeping Services for Gyms

First and foremost, new gym owners should take the time to educate themselves on business finances. Since many gym owners have a background in fitness and not finance, this small step can make the world of difference once the gym is up and running. 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. 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.

These financials will provide a clearer understanding of a club’s margins and profitability. In addition to the bookkeeping service, Less Accounting also offers self-service accounting software that provides you with a complete package of all the accounting tools you need for your gym. Combined with the bookkeeping service, this software makes you needless of every other tool and software on the market to manage your gym finances and eliminates your risky tax mistakes. Separate bank accounts will avoid the need to repeatedly shift through the expenses to find out which are related to the gym, and which are personal. It will also give you the advantage of more meticulous cash flow management and build stronger credibility and professionalism with your business. Without proper bookkeeping practices in place, it becomes nearly impossible for gym owners to gain an accurate understanding of their financial position or effectively plan for future growth.

Keep Your Books Updated

This involves ensuring accurate billing cycles based on different membership plans (monthly/quarterly/yearly) and tracking delinquent payments or cancellations. You can save yourself some cash by doing as much of your own bookkeeping as possible. Your accountant would prefer that you not drop a shoe box full of receipts and records in his or her office. Such a strategy will cost you a lot of money in accounting fees; you don’t want to pay your accountant for routine clerical work. We save fitness owners an average 15 hours a month in tedious, boring yet essential reporting.

• For example, you have appointed personal trainers as full-time employees and pay your employees on a monthly basis in your gym.
• But in the rare chance you’re not happy after 90 days we offer a money back guaranteed.
• 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.
• Moreover, you can categorize the payments of these employees as payrolls.
• You deserve an accountant who has a passion for fitness and years of experience serving fitness businesses.

This will keep more money in your bank account and improve your overall financial situation. The amount of equipment that a traditional gym requires can be extremely expensive, and purchasing all of this equipment at once can significantly impact your cash flow. Since workout trends and technological advancements impact which equipment is popular at any given time, it can be much better to lease it, saving you money in the long run and improving your cash flow. Finding a way to automate the collection process can save you a substantial amount of time while helping to ensure a constant inflow of cash throughout the year. Automatic membership collection also gives you better revenue forecasting abilities based on the new subscription and churn data reflected in your system in real-time.