Accounting Tips For Personal Trainers

Running a personal training business can be hard work! Apart from the usual small business compliance requirements such as GST, income tax, and PAYG, you also have to contend with early starts, late finishes, maintenance of gym equipment, client intake and management, marketing, payment, and occupational health and safety issues... it’s a lot to take on! 

Over the years we have worked with many personal trainers and gym owners through the various stages of their business life cycle, from start-up right through to sale. In this time, we’ve gained experience, technical knowledge, and an intimate understanding of the fitness industry. We’ve also seen the struggles that they face, and it usually centres around finances. Many fitness entrepreneurs take a relaxed approach towards their accounting and taxes, which can lead to missing out on many beneficial tax deductions, and a lack of preparedness when it comes to evaluating the financial aspects of their business.

If you’re a personal trainer or someone who is looking to get into this field, we recommend you take on board these accounting tips, so you can run the financial side of your business in the best way possible!

TRACK YOUR INCOME AND EXPENSES

This may seem a little obvious, but it’s something that is often overlooked and pushed down on the to-do list when it comes to self-employed personal trainers and coaches. The easiest way to manage this is to set up an excel spreadsheet where you track all of your business incoming and outgoing expenses. As your business starts to grow, you may look to start using cloud-based accounting software such as Xero. This will allow for more visibility on your businesses expenses and overall financial position.

STREAMLINE PAYMENTS

Your clients probably pay using a number of different methods (direct debit, BPAY, credit card, PayPal, cash etc). Whilst this is good for the client, it can be difficult for you to manage. Streamlining payment options where possible can help you to stay on top of all of your incoming expenses. This may look like only offering online payments before sessions, or providing a Square card reader for clients to pay at the time of their session without cash. 

KNOW THE COSTS YOU CAN DEDUCT

Knowing the costs you can deduct come tax time can save you a lot of money! This obviously differs depending on the nature of your business. For example, an in-person personal trainer is going to have different associated costs to an online coach. We recommend working with an accountant who specialises in the health & fitness industry (like us!), as they can best guide you on the costs to deduct based on the nature of your business. You can also check out our Personal Trainer Tax Deductions Checklist here.

TAXES

As a self-employed personal trainer, you now have to pay your own income tax. Rather than waiting to receive a big tax bill, you should start putting money aside as you earn it. We recommend opening a separate account for tax payments only and transferring a percentage of your income each time you get paid. If your business grows, the ATO may require you to pay income tax in quarterly instalments, known as pay as you go (PAYG). You can get an idea of how much you might have to pay with their PAYG instalment calculator. 

OUTSOURCE

Master your strengths, outsource your weaknesses! If you want to grow your business, you need to start outsourcing tasks that are not your speciality and take up too much time. As a small business owner on a limited budget, you may think that the cost of an accountant is not the best use of your money. If you have a background in accounting and a solid understanding of finances, it may be a good place to cut costs. However, if you are lacking experience in accounting and bookkeeping and hope to just learn as you go, you may be hurting your business in the long run and making a costly mistake. Accountants are much more than just ‘number crunchers’. They can provide a wealth of knowledge on how to improve your cash flow and grow your business, and can become a vital part of your team.

Having an accountant who understands the fitness industry can go a long way in helping you to succeed. Want to work with us? Book a free consultation!