Years spent pumping iron in the gym creates expert insights about the ways to train others. You may even understand what the average person looks for in a simple gym membership. All this knowledge allowed you to open a successful fitness facility that boasts a significant number of members. Your experience, however, doesn't include bookkeeping skills. Since a gym represents a commercial establishment, proper bookkeeping becomes necessary to maintain appropriate financials and avoid tax problems. If you lack those skills, turn to Deltek outsourced bookkeeping services for assistance. Keeping accurate financial records increases the chances the business runs smoothly, and you avoid worrisome distractions.
The Depreciation Example
For any business to thrive, keeping expenses to a minimum becomes a priority. Taxes reflect costs a business faces. A commercial gym may find a heavy tax burden challenging to deal with considering all the equipment the gym must maintain. One way to deal with this issue involves taking legitimate depreciation deductions on the Form 4562. Cardio machines and free weight do suffer from wear and tear. Why not take the deduction? By adequately logging information regarding the value and decline in condition, a gym owner may gain a valuable tax deduction. Information on the form does need to be complete and accurate. Records kept and maintained by a professional bookkeeping service help with this cause.
Keeping Track of Additional Sales Revenue
Gym owners quickly realize ancillary sources of income become necessary to generate additional revenue. T-shirts, supplements, smoothies, and more contribute to the gross revenue. Selling goes hand-in-hand with buying. All the berries, juices, and other ingredients that go into a smoothie cost money. How much ends up being sold vs. thrown out due to spoilage? And what is the profit margin on T-shirts and hats? Definitive answers to these questions become necessary when tax time arrives. Even before then, accurate figures help with decisions regarding whether to continue spending money on something only marginally profitable.
Logging Deals with Trainers
Working deals with personal trainers further supports increased revenue. Often, trainers work as independent contractors, but the gym collects fees from the clients. At set schedules, the gym distributes payments—minus a booking fee—to the personal trainer. Without proper bookkeeping, a situation such as this could become a tax and accounting nightmare for a gym owner. Where do the outgoing payments and the gym's profits begin and end? A bookkeeping service can definitively answer that question.
Attempts to handle all these duties can prove overwhelming. Why not outsource the work to bookkeepers capable of performing the heavy lifting?