Being organized is one of the biggest keys to success for most organizations. When it comes to bookkeeping, the tighter and cleaner everything is, the fewer problems you’ll face in the long run. Hiring a bookkeeper or an accountant is great but not every member-based business will be able to afford one.
Many startups and small businesses handle all business operations internally; in which case, knowing some fundamentals will be key. Here are some bookkeeping fundamentals to think about for your member-based business.
Learn the Process
Many startups, whether they’re gyms, studios, dance centres, martial arts clubs or otherwise, have zero experience with bookkeeping. The first thing everyone should know is the basic process. There are many steps but the four broad ones are as follows: first, gather all documents, including checking records, deposit records, bank statements, bills from vendors, receipts for purchases and invoices issued to customers. Second, you’ll have to input all of your source documents into journals and accounts. Then, at the end of the accounting period, you’ll have to balance accounts and perform reconciliations. Finally, you’ll be able to close the books.
The accounts in the second step that are valid for most member-based businesses is cash (regularly a debit balance), accounts receivable (debit), inventory (debit), accounts payable (credit), loans payable (credit), sales (credit), expense accounts (debit), and payroll expenses.
Streamline the Gathering
Gathering your documents can be extremely cumbersome, if you don’t set up a system beforehand. Make sure you create a good filing system that takes care of all your needs. Troubleshooting is always great here; see what works and what falls through the cracks. If you do a lot of purchasing with receipts, a pocket portfolio is a great way to keep all those tiny sheets of paper separate. Once you get back to the office, you can file it in the appropriate folders for easy accounting. Remember, a minute spent planning and building your bookkeeping system is an hour saved at a later date.
Another thing that could help save you time and money is an expense tracker. Xplor Recreation has an expense tracking feature aimed at keeping you organized. It eliminates the physical clutter, while giving you peace of mind that your expenses are all tracked in a way that is simple to manage and easy to access any time.
Stay on Top of your Business
Having a strong overview of your business and good bookkeeping go hand in hand. Our Smart Dashboard gives you an incredible wealth of information about your member-based business in one quick glance. Everything from a member retention measure to financial performance is covered, helping you keep track of the things that matter most. Our 24-hour reports also break down your performance on a daily basis, showing you important specifics that will allow you to make informed decisions. This also tracks credit card transactions that are successful or are declined.
Looking to save time? Check out our bookkeeping functions that can help you become more efficient and how they can eliminate mistakes from your day-to-day.
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