Record Keeping
Keeping proper records is essential to running any successful business. First and foremost, adequate record keeping is required by law for tax purposes. In addition to the legal considerations, record keeping allows you to track and measure growth and address issues as they arise. The better and more accurately you keep your records, the less you will spend in the long run on accounting and legal fees.
Financial Records
There are several types of financial records you will need to keep: sales records, cash receipts, accounts payable, and accounts receivable. The simplest and least expensive way to keep these records is by hand. If you choose to go this route, your accountant can set you up with a system of ledgers that works for you. If you find you are spending too much time with the books, you may choose to purchase financial software that is relatively inexpensive and easy to use. There are generic programs such as Intuit's QuickBooks and Peachtree Accounting that will assist you with invoicing, accounts receivable, accounts payable, etc. The appeal is that you enter the data and the software performs the calculations. There is less chance of error with this method. These programs also make it easy to print reports for your accountant, and may ultimately keep your accounting costs down.
If you are opening your own facility, more specialized programs specific to personal training are also available. These companies charge a monthly fee, but there is often no charge for the software itself. They provide many services, including: Electronic Funds Transfer (EFT) and credit card processing; billing; collections on delinquent accounts; member check in; membership card services; guest and prospect tracking; session tracking; renewal notices; and much more. Several of these companies are listed below, but there are numerous companies offering these services, so do your research and find the best value for your business.
Twin Oaks |
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eFit Financial |
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ABC Financial |
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ASF International |
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CSI Software |
The size of your business and cost of the system will likely be the major considerations when deciding upon a method of record keeping. If you are unsure where to begin, consult with your accountant.
Question
How can I know which software product will work best for my company?
First, look at whether or not the program meets your anticipated needs. Then project the amount of business you will be producing and determine if the product is affordable. Most companies will send you a demo disk or refer you to a business in the area that uses their product so you can see firsthand how it works and if it is right for you.
Client Records
Each client or member should have her own file. These files should contain copies of the membership application, medical history forms, informed consent, results of exercise testing, signed contracts, goal sheets, and past and current exercise programs. In order to protect confidentiality, all documents should be kept locked in a place where only you and the personnel of your choice have access.
Keeping accurate client records is important for two reasons. The first is professionalism. It looks extremely unprofessional if you can't locate results of prior testing or an old exercise program. By keeping all documents in one place, everything will be in order and at your fingertips. Keeping careful track of your clients and their progress may seem like a lot of work, but in the long run it will make for less work and a smoother-running business. You will be able to develop and implement programs and chart progress much more effectively if you are organized.
The second reason to keep accurate client records is legal liability. In the event of a lawsuit, you can produce the informed consent and medical history forms, as well as exactly what exercise programs the client had been instructed to perform. Providing proper documentation demonstrates responsibility and professionalism and gives the lawyer something to work with.
