Accounting for Fitness Professions

It’s hard to believe the year is literally flying by!  As we approach the holiday season, our thoughts should start turning to the start of the year, and for fitness professions, that generally means a huge ramp-up in new clients hoping to fulfill New Year’s resolutions.  Now is also a good time to start thinking about outsourcing your accounting and payroll functions so you can focus your time and energy on your clients health and well-being.

Several businesses fall into fitness professions.  Most of our clients run fitness programs of some sort.  One has kids programs, another is a personal trainer.  Gyms would also fall into this category of client, although they generally utilize special software and we only work on the back-end of things.  For those independent companies though, here’s a few things we can help you with.

We will create a database of your clients, separated by active or inactive.  If you run multiple types of programs, we will differentiate those for you.  You may be asking why you need this at all.  This will help you to see your most common programs, and after running it through QuickBooks, you will see your most profitable programs. You will want to focus on marketing your most profitable programs, or if that’s not your most popular, finding ways to add value while reducing cost on your most popular to make it your most profitable as well.

We will track client contracts and match up the payments to the contract.  QuickBooks makes this very easy, and allows you to see on a real-time basis what their outstanding balance is on their contract.

QuickBooks also has a variety of ways to help you track your expenses accurately too.  Some of this goes into cost accounting, but let me use the example of my personal trainer.  He rents office space (a fixed cost per month) and also pays a per-use cost to the gym for each client he trains there.  You can track these costs independently through accounting software, but still have each listed under a “rent” category.  In the future, if you need to cut costs, you can easily see that the gym per-use cost is a way to save.  Maybe during the summer you can train clients in a park, or other location to give them variety while reducing costs.  There are also different expenses you can track separately, such as equipment you need to run your business versus equipment you purchase for your clients.

Fitness businesses can also be unique because they don’t necessarily have regular employees like other businesses.  they can use “statutory” employees or independent contractors.  Payroll for these is different, and needs to be handled specially in order to comply with federal and state regulations.

We would love to look at your business with you and see how we can grow it.  You can reach us at 949.478.3329 or e-mail me directly at ldavenport@youracctgpros.com for a free one-hour assessment.