How it runs for gyms, fitness and wellness studios
Under Two-Tier Review a team lead checks the close before the package is released by the fifth business day.
What is month-end close outsourcing?
Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements.
What we handle for gyms, fitness and wellness studios
- Cut off sales and attendance in the booking platform on the last day of the month
- Release deferred revenue for packs and prepaid plans from attendance and membership reports
- Accrue instructor, trainer and commission pay for classes and sessions not yet paid
- Reconcile processor clearing, deferred revenue, sales tax and gift-card liabilities to source
- Complete every close with a second-accountant review and a written sign-off
The KPI that matters here
Close released by the fifth business day with membership revenue tied to the roster and deferred revenue tied to unused classes.
Fitness compliance notes
Auto-renewal and health club statutes
State automatic-renewal laws require clear disclosure of recurring terms, affirmative consent and an easy cancellation path, and many states also have health club statutes that limit contract length, set cancellation rights and may require a bond for prepaid memberships. We keep the signed agreement and consent with each member's billing record and report prepaid balances so your counsel can confirm bonding needs; the legal review is theirs.
Deferred revenue for prepaid plans and packs
Annual memberships, class packs and training packages are liabilities until the service is delivered. We hold them in deferred revenue, release them from attendance and session logs, track expired and unused balances under your published policy, and report the liability monthly so lenders, buyers and your tax preparer see the obligation behind the cash.
Card-on-file and stored-credential rules
Card networks require a member's consent before a card is stored, disclosure of the recurring amount and schedule, and notice before a trial converts to a paid plan. Our agents never take or store card numbers; members enter cards through your booking platform or Stripe, and we reconcile the consent date to the first charge when a dispute is raised.
Sales tax on memberships and retail
Some states tax gym memberships and class fees, most tax retail and supplements, and a few treat personal training differently from group classes. We map each product in your booking platform to its tax treatment, reconcile tax collected to the ledger by state each month, and prepare the workings for your filing.
Fitness software we work in
- Stripe
- QuickBooks Online
- Xero
- Square
- Gusto
- Mindbody
- Zen Planner
- Mariana Tek
- ABC Fitness
- All 50 platforms
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Frequently asked questions
Why release class packs from attendance instead of when they are sold?
Because the studio has not earned the revenue until the class is taught. A pack sold in January and used through April is January cash and four months of revenue. Releasing from the attendance report matches revenue to instructor cost, keeps months comparable, and shows the classes still owed as a liability, which a lender or buyer will ask about.
How do you handle expired packs and unused annual months?
Under the expiry policy your agreements state, an unused class that expires is released to revenue on the expiry date and reported separately as breakage so it is not mistaken for attendance growth. Where state rules treat unused prepaid balances as refundable or reportable, we flag the balance for your counsel rather than release it. Freezes extend the release schedule instead of shortening it.
What does the close package contain for a fitness studio?
A P&L by location with revenue by product line, instructor and trainer cost as a percent of class and training revenue, a balance sheet with every account reconciled, a deferred revenue schedule by product, a processor and aggregator reconciliation summary, a failed-payment recovery summary, and a short note on what moved. Who prepared and who reviewed each step is recorded in the CloseTrack log.
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