Health & Wellness

Bookkeeping for fitness studios, wellness practitioners, and health services. We handle membership tracking, prepaid packages, and contractor payments.

The Industry

Health and wellness bookkeeping is tricky because you sell memberships, class packages, and prepaid services. Money comes in before you deliver the service. You need to track deferred revenue, recognize income properly, and handle refunds and cancellations without messing up your books.

We work with fitness studios, yoga and pilates studios, massage therapists, chiropractors, med spas, wellness centers, and personal trainers. We know how to handle membership billing, package sales, contractor payments for space rental, and retail product sales that often come with service businesses.

Who We Serve

Fitness studios, yoga and pilates studios, massage therapy practices, chiropractic offices, med spas, wellness centers, personal training businesses, and other health and wellness service providers.

What Makes Us Different

We understand deferred revenue accounting for memberships and prepaid packages. We know how to handle contractor relationships common in the industry and track retail sales alongside service revenue.

The Services

Health and wellness businesses need bookkeeping that handles subscription billing, prepaid services, and the mix of contractors and employees common in the industry. Here’s what we handle.

Membership and Package Tracking

We track membership revenue, class packages, and prepaid services correctly. Money collected upfront is recorded as a liability and recognized as revenue when you actually deliver the service.

Contractor vs Employee

We handle payments to instructors, therapists, and trainers whether they are employees, contractors, or space renters. We track 1099s, commission splits, and space rental arrangements properly.

Retail Product Sales

Many wellness businesses sell supplements, equipment, or products alongside services. We track retail inventory and cost of goods sold separately from service revenue so you know what is profitable.

Refund and Cancellation Tracking

We properly account for refunds, cancellations, and membership freezes. Your revenue numbers reflect what you actually earned, not what you collected before people canceled.

The Problem

Most wellness businesses record membership payments as revenue when they collect the money. But that is wrong. If someone pays for a year upfront and cancels after two months, you owe them a refund. Treating it all as revenue on day one means your books are overstated.

Contractor relationships are often misclassified. Studios treat instructors as contractors when they should be employees. That creates payroll tax problems. Or they handle space rental wrong and mess up 1099 reporting.

Wrong Revenue Recognition

Recording prepaid memberships and packages as immediate revenue overstates profit. When cancellations happen, refunds hit as expenses in a different period and your monthly numbers make no sense.

Contractor Misclassification

Treating employees as contractors to avoid payroll taxes sounds good until the IRS or state workforce commission disagrees. Back taxes, penalties, and fines add up fast when misclassification gets caught.

Mixed Revenue Streams

When service revenue, retail sales, and space rental income all run through the same accounts, you cannot tell what parts of the business make money. One revenue stream might be subsidizing another.

No Clear Metrics

Without proper tracking, you do not know important metrics like customer lifetime value, churn rate, or average revenue per member. You cannot make informed decisions about pricing or retention strategies.

The Outcome

Your revenue recognition is correct. Prepaid memberships and packages are tracked as liabilities and recognized as you deliver services. Your profit numbers reflect reality, not just cash collected.

Contractor relationships are documented properly. You know who gets W-2s and who gets 1099s. Payments to instructors or therapists are categorized correctly whether they are commission splits, space rental, or employee wages.

Accurate Profitability

You know which services make money and which products sell profitably. You can price memberships and packages based on actual costs and member behavior patterns.

Better Member Metrics

Proper tracking gives you real data on retention, lifetime value, and revenue per member. You can make informed decisions about pricing, marketing, and which services to expand.

DFW's Trusted Bookkeeping Firm