How much does accounting cost for gym owners?
This must be the most common question I am asked and let’s be honest we all expect that answer to be available at the click of a button nowadays. However, I will liken it to when you got a price for your gym fit out, you did not receive an out of the box price, as every gym is unique, and every gym owners’ vision and dreams are different. The price would have been dependent on the size of your space, the type of equipment you wanted, what services and experiences you wanted your members to enjoy.
I realise that not having prices on my website could make you think I am hiding something and fill you with anxiety about jumping on a call with me, it might even distract you during the call as you are waiting for price at the end. So even though I cannot give you a price, as my fees are tailored to each individual business and their needs, I wanted to talk you through the process and give you an understanding of how I price.
Firstly, I just wanted to advise that I only work with businesses who either use Xero or are prepared to move across to Xero. This is for your benefit, as it means you can seamlessly access your finances, no matter where you are. It can be accessed via any device, enabling you to check your bank, pay invoices and use the app to take pictures of receipts on the go, saving you time.
The investment in moving your accounts to me will be dependent on a few things:
· To start there is a minimum monthly fee of £100 and this is for the smallest of businesses and minimal service level. This is because under this level of investment I would not be able to provide the level of service you need, to have up-to-date accounts and information for you to make informed decisions.
· Turnover level/size of business, this because the bigger the business the more work I need to do.
· Number of transactions and how frequently you require the bookkeeping to be updated (weekly or monthly). This is due to the level of work involved.
· Number of employees on payroll. Does that mean if you get an additional employee that the cost would go up? Yep, the price will increase, just as I would expect you to charge for additional services.
· Whether you have an in-house finance team or bookkeeper maintaining the records or whether you would like me to complete the bookkeeping. Bookkeeping is a highly skilled role, which takes years to learn and requires continuous development. Therefore, when you invest your bookkeeping with me, the actual fees you pay are lower than a business who needs constant checks.
· Frequency of management reports and forecasts, due to the level of work involved every month or quarter to review the information and produce advice.
· Requirement for cash forecasts and management of cash forecasts, some businesses have an annual cash forecast, whilst others upgrade the service to include a regular review and adjustment with me. This requires a greater investment of preparation and review.
· Strategic advice and 12 monthly goals/business plan, this is a service that provides a greater level of business support, with the business owner working with me to establish their goals and create a plan which is monitored.
· I offer a “quick query” service which means you don’t need to worry about asking me those little questions you have, you can ask me quick (10 min) questions without incurring any additional charges, this service is included free as standard.
You pay Xero and invite me in, Hubdoc is part of the Xero subscription so you will receive access to that for free. As mentioned above I only work with Xero as it works so well for businesses and gym owners. Xero allows you to seamlessly access your finances, no matter where you are. It can be accessed via any device, enabling you to check your bank, pay invoices and use the app to take pictures of receipts on the go, saving you time.
Any additional work which takes longer than 10 minutes or requires additional research will be chargeable, this will always be discussed beforehand and added to the service agreement and priced accordingly, but don’t worry I will not commence any work without discussing with you beforehand. No surprise bills!
If you sign up part way through the year, this will create an alignment fee which is payable at the start or can be spread over 3 months. This is because the annual fee is spread across 12 months and if you join after say 7 months, certain elements such as annual accounts fees will need to be caught up. After that going forward the annual amount will be spread across 12 months and charged as a direct debit, as I found that business owners prefer to spread the cost evenly across the year, so they can budget and manage their cash. There is no large bill at the end of the year to pay.
Any examples of price then?
So you are still none the wiser about cost! Well, I can provide some examples which will help this.
Gym requiring accountancy work (all prices are per month)
Turnover of £500k per annum, payroll for 5 employees, VAT return submitted quarterly, annual accounts, tax and confirmations statement submitted, 1 directors tax return and 200 transactions a month to be reconciled (by me):
This would be £468pm
If you wanted to add a quarterly zoom meeting it would be £37pm and a set of quarterly management accounts would be £92 per month.
Larger gym requiring finance director support: (all prices are per month)
Turning over £1m per annum, all bookkeeping and compliance work (accounts, tax, VAT, payroll) is handled by an in-house bookkeeper and an external compliance accountant. The business owner wants to grow the business and make more profit, ultimately to be able to take more cash from the business and take the family on holiday. They are looking for a part-time finance director as they don’t need and cannot afford a full time finance director.
I will provide monthly management accounts, an annual cash forecast and monthly management meetings which involves going through the accounts, providing advice and answering any questions the business owner has. Together we will look where improvements can be made, costs saved and profit increased.
This level of support would require an investment of £615pm
As your business changes the level of service you require will change, so I wanted to outline the frequency with which we review the service levels:
1) Payroll and software fees are reviewed every month
2) Bookkeeping every quarter
3) Account fees annually, providing you with an update 3 months prior to the year end.
4) I have the option to increase fees annually by up to 5% to account for inflation.
The monthly invoices are updated going forward to reflect any changes, this will be discussed with you before hand.
There is no need to worry about direct debits being taken without prior notice.
Monthly invoices are sent on the 1st of each month, which are payable by direct debit. This is set-up, so you don’t need to worry, GoCardless will process the payment on 15th of month. It doesn’t require any input from you and will be the same amount every month as agreed in the proposal (unless there is an agreed adjustment due to a review).
It is impossible to calculate a price without speaking to you, finding out what help and support you need, what support you already have and how frequently you want certain services. That is why we have the initial discovery call to decide if we are both a good fit and then a second call to go through the services, frequency etc to calculate the price.
As a business owner it’s critical to look at your accountancy fees as an investment rather than a cost.
An accountant is someone who can help your business progress, help you increase your profits and reduce your stress, giving you back time to do what you want. By investing in an accountant you are giving yourself a chance to experience this, a cheap once a year accountant won’t be able to provide that.
To understand what your price would be, contact me for an initial 15 minute free discovery call and if you decide to move to a proposal then I will provide the price.
I will provide you with a proposal which clearly outlines the price and services included, as well as the additional services you may wish to consider in the future as your business grows.
1. Book a call with me: https://southbourneaccountancy.co.uk/contact-us/
2. Download my free guide on “7 mistakes to avoid – to stop your fitness business running out of cash” https://southbourneaccountancy.co.uk/fitness-ebook/
3. Connect with me on social media:
4. Book an R&D eligibity call: https://calendly.com/rdteam/15min?month=2020-11
5. Grab a copy of our “32 ways to extract value from your business” – tax savings. Here https://southbourneaccountancy.hubspotpagebuilder.com/32-ways-checklist-to-extract-value-from-your-business-save-tax-now