Fitness & Wellness
Gyms live or die by retention. We separate recurring membership revenue from drop-ins and retail so you have an accurate picture of your profitability.
The Industry
Fitness businesses run on a mix of recurring subscriptions and expiring class packs. Your front desk software handles the bookings but the bank deposits often arrive as a lump sum. This obscures the details of your revenue.
Financial health is not determined by how busy the lobby looks at 5:00 PM. It relies on understanding the difference between cash collected today and revenue actually earned. Selling a year-long membership upfront puts cash in the bank now but that money needs to cover rent for the next twelve months.
Who This Covers
Who This Covers
CrossFit boxes, yoga and pilates studios, personal training facilities, and boutique gyms. This works for any business managing a roster of members and a schedule of classes.
The Friction
The Friction
Reconciling data from platforms like MindBody or ZenPlanner against the bank statement is tedious. Calculating payroll for instructors paid based on attendance or commission requires precise math that standard software misses.
The Process
The gap between member management software and the accounting ledger must be bridged. Net deposits are broken down into revenue streams. This shows exactly how much income comes from memberships versus retail products or drop-in fees.
Prepaid revenue requires specific handling. When a client buys a 20-class pack that money is technically a liability until the classes are taken. Tracking this accurately prevents you from treating future obligations as today’s profit.
Payroll Logic
Payroll Logic
Trainer pay structures can be complex. Tracking split rates and class bonuses ensures talent gets paid accurately. This keeps your team happy and your payroll tax filings correct.
Sales Tax Compliance
Sales Tax Compliance
Missouri generally taxes retail goods but not fitness services. Your point-of-sale system must be mapped correctly. You do not want to under-collect on t-shirts or over-collect on yoga classes.
Common Problems
Many owners misinterpret cash flow during the New Year rush. Assuming the January spike is the new normal leads to overspending in the spring. Without a clear view of recurring revenue it is easy to struggle when attendance dips in the summer.
Another issue is lifestyle bleed. Personal expenses for supplements or workout gear often get mixed with business costs. While some of this is deductible aggressive expensing without documentation is a red flag for auditors.
The Churn Trap
The Churn Trap
Looking only at total revenue masks problems. You might be losing long-term members while replacing them with short-term trials. Tracking these trends separately gives a clearer picture of retention.
Independent Contractors
Independent Contractors
The industry is notorious for misclassifying employees as contractors. If you control their schedule and their method of teaching they are likely employees. Staying on the right side of labor laws is critical.
What Changes
Accurate reporting distinguishes between actual growth and simple member churn. You will understand the distinct profitability of group classes versus personal training. This allows you to optimize the schedule for margin rather than just capacity.
Financial stress reduces because you can forecast the lean months. Understanding your true burn rate allows you to build cash reserves during peak season. This carries the business smoothly through the summer slowdowns.
Strategic Hiring
Strategic Hiring
Hire new instructors with confidence. You know exactly how many classes they need to teach to cover their cost. Data turns hiring from a gamble into a math problem.
Valuation Readiness
Valuation Readiness
If you decide to sell clean books are the primary requirement. A prospective buyer needs to see verified recurring revenue and clear expense ratios. They will not buy a shoebox of receipts.
Full-Charge Bookkeeping for Mid-Mo's Businesses
The Next Step:
Get Your Quote
Tell us what you're dealing with. We'll listen, ask a few questions, and give you a straightforward price that meets your expectations.
