When running a martial arts school, bookkeeping is where many new owners tend to fail or learn their hardest of lessons. If done correctly, it can keep you from losing the momentum you gained from opening your martial arts academy. Here are some crucial tips to keep your bookkeeping on track.
Have a Budget for Everything
Planning plays an important role. Whether you hire new team members, run marketing campaigns, buy branded merchandise and products, or organize an event, try to manage everything with fixed budgets.
When you spend without limits and proper tracking of those expenses, you disrupt the delicate balance between your overhead and revenue. Be sure to follow strict rules of budgets and expense balance sheets.
Keep your Personal And Business Finances Separate
One of the most common mistakes of running any business is mixing personal and business finances. It provides nothing but headaches for your martial arts business to endure in the future.
It’s essential to open a separate business account and have a business credit card to track your business’s actual credit rating.
If you have to get a loan for your academy, do not forget to repay it. As redundant as it sounds stating this, it’s actually pretty easy to let something like this slip when trying to manage the many moving parts of a martial arts business.
Perform Routine Checkups
Performing routine financial checkups is crucial to keep everything on track. It’s up to you whether you choose weekly checkups or monthly checkups to ensure that everything stays within the delicate balance necessary for your academy to be successful.
At the very least, you should take an in-depth review of your accounting bookkeeping records at the end of every quarter so you can be on top of your finances and be able to correct any issues before it becomes a major problem.
Invest in Martial Arts Business Management Software
Keeping track of payments and product sales can be very difficult as your volume grows, which is why investing in setting up a proper tool to automate that will pay large dividends over time.
Martial Arts on Rails allows you to run payments automatically and manage product sales and inventory tracking. You’ll be able to quickly see the status of your finances with a visualization of upcoming payments, successful payments and overdue payments. This helps you plan your budget and address any outstanding accounts before it becomes an issue to your cashflow.
Consult with a Financial Professional Yearly
Various bookkeeping techniques may include keeping a close eye on account receivables, tax deadlines, financial records, business documents, sales invoicing, and bookkeeping checks from an expert.
You should always seek a yearly consultation with a pro to help you with new changes and improved functions to maintain all finance-related activities at your martial arts academy.