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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