Are you ready for a New Year in your Fitness Business?
Having sound financial practices in your business is kind of like having a solid foundation under your house. It is easier to grow and add on new things if you are worried about the floor falling out beneath you.
There are 4 key area that you need to be aware of:
- Outstanding invoices
- Appointments Outstanding
Appointments Outstanding is only applicable if you pre-sell packages. If this is how you sell your services then your accountant is going to want to know how appointments you have been paid for that you haven’t yet provided to the client, Appointments Outstanding, this is considered a liability on your books.
We are going to run through the 4 key reports you will want to pull at the end of the year, make sure that you save them so when you are ready to submit your income tax you have the correct data you need. There are certain reports that are real time reports so that it is critical that you pull the report at the end of your fiscal year. These are also the reports that you may want to use each month to check your businesses financial health!
Sales by Category:
myVolo uses Accrual Accounting as the basis of our software this means that as soon as an invoice is created it counts towards your sales regardless of when your clients actually pay you for it, check out this video to learn more (http://www.investopedia.com/video/play/accrual-accounting/).
The Sales by Category report can be pulled for any time frame and shows you the total revenue that you have during that time frame (regardless of how much you have received in payments)
All downloads from myVolo are tab delimited files, simply save the file and open excel and open the file
And it will be formatted into rows and columns for you
Payments by Type:
This is a record of when you received money for sales that you have made. This is a critical report for balancing your bank account every month! We recommend pulling this report at the end of each month/year so that you can balance your bank account.
This report allows you to click on any part of it and see what invoices/members made up that amount of money that you received.
If the deposits to your bank account don’t match simply click on the date/payment method and you will see a breakdown of the transactions involved
This is a real time report so it is critical that you pull this report on the last day of the year to have an accurate reflection of what was outstanding at the end of your financial year.
If you think that some of those invoices are no longer collectable then we would recommend that you return the item in myVolo which will create a negative sales reference thus lowering your total revenue for the year, iIf possible do it before the end of the year.
Again make sure that you download and save this report as if you look at it 2 weeks or 2 months from now it could be completely different.
This report is only relevant for people that pre-sell packages and long term memberships that you might be required to re-imburse your clients for. If you have been paid for appointments but haven’t yet provided them to the client then you “owe” the client these sessions and that is why this is looked at as a liability. This is a real time report so every time a client checks in myVolo is adjusting how many appointments are outstanding so make sure you download and save this report at the end of the year!
By reviewing your financial reports on a regular basis the foundation of your business is going to be nice and strong and you will be able to focus on new projects and new clients rather than scrambling to find the data you need to take care of the tax man!
Have a great holiday season but make sure to take a few minutes to prepare for a profitable and growth filled New Year!