Hold on to your socks…today we are going to talk about your chart of accounts & I don’t want to blow your socks off. I understand, as a gym owner you don’t get out of bed to learn accounting basics. But trust me, understanding this stuff will make you a better owner. Just think about who your best clients are – are they the people that just show up because they know they should and don’t really care about learning anything or are your best clients the ones that are truly interested in learning about how to eat better and move better? So, be that good client and get your learn on with this Bookkeeping 101 for Gyms and Fitness Professionals series.
First off, what the hell is a chart of accounts?
The chart of accounts is a listing of the accounts available in which you record entries. The chart of accounts should be tailored specifically for your industry or even more specifically to your operations.
That’s simple enough, but the order in which they are listed deserves a little explanation as well. The chart of accounts lists all of the Balance Sheet accounts first and then all of the Income Statement accounts.
Balance Sheet Accounts: – Assets
– Liabilities
– Owner’s Equity
Income Statement Accounts: – Operating Revenues
– Operating Expenses
– Non-Operating Revenues
– Non-Operating Expenses
(Check out the posts about the Balance Sheet and Income Statement for more info there).
Your chart of accounts should be simple enough that you are able to use them year-to-year yet specific enough to provide useful financial data.
To get you started, here is a sample chart of accounts for a gym:
Asset Accounts – Balance Sheet
1001 Cash (Checking Account)
1010 Savings Account
1200 Accounts Receivable
1400 Merchandise Inventory
1600 Prepaid Insurance
1700 Land (if you own your building)
1750 Buildings (if you own your building)
1760 Accumulated Depreciation – Buildings
1800 Equipment
1810 Accumulated Depreciation – Equipment
Liability Accounts – Balance Sheet
2000 Accounts Payable
2100 Wages Payable
2200 Interest Payable
2300 Unearned Training Revenue
2400 Mortgage Payable (if you own your building)
Owner’s Equity Accounts – Balance Sheet
3000 Capital – Owner X
3005 Draws – Owner X
3200 Retained Earnings
Operating Revenue Accounts – Income Statement
4000 Group Training Sales
4010 Personal Training Sales
4020 Specialty Program Sales
4030 Nutrition Coaching Sales
4040 Pro-Shop Sales
Operating Expense Accounts – Income Statement
5000 Cost of Merchandise Sold
6010 Advertising
6020 Bad Debts
6030 Bank Charges
6040 Charitable Contributions
6050 Dues & Subscriptions
6060 Gym Equipment/Supplies
6070 Insurance
6080 Janitorial & Cleaning
6090 Lease Expense
6100 Legal Expense
6110 Licenses & Permits
6200 Meals & Entertainment – 100% Deductible
6210 Meals & Entertainment – 50% Deductible
6300 Office Expense
6400 Payroll Expense – Group Training
6410 Payroll Expense – Personal Training
6420 Payroll Expense – Specialty Program
6430 Payroll Expense – Admin
6440 Payroll Expense – Owner’s Pay
6500 Payroll Tax Expense
6600 Rent
6610 Repairs & Maintenance
6650 Training & Education
6670 Travel
6700 Utilities (I include gas, water, electricity, phone, internet, cable)
8000 Amortization
8050 Depreciation
Non-Operating Revenues & Expenses – Income Statement
8500 Interest Income
8600 Interest Expense
Use this chart to get your bookkeeping started. Let me know in the comments if you have any questions.
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