Bookkeeping for Fitness & Health Coaches
There’s a big difference between someone who offers bookkeeping services and someone who really cares about your business. Someone invested in your success will help you determine whether something is a good or bad decision right now.
You don’t want the one-stop-shop when it comes to bookkeeping and filing your taxes. These are two different things. Just the way a doctor and a nurse are two different, but complementary roles, a bookkeeper and a tax accountant have different areas of expertise, but need each other. The bookkeeper bridges the gap between you and your tax accountant.
Work with the experts and then let the experts work together. A good bookkeeper saves money (tax accountant fees are rising because of the shortage of them). Your bookkeeper will communicate with your tax accountant and hand off clean, accurate books so the tax accountant can build on that work.
Keep in mind, if the same firm doing your taxes is doing your bookkeeping, there is a high chance of human error and this can create a conflict of interest. Think checks and balances.
Complimentary Roles
Bookkeeper’s role: Managing the business financials day-to-day so you can understand exactly what is coming in and going out of your business, equipping you to make strategic decisions that will increase profits.
Tax Accountant's role: Using the financial data prepared by the bookkeeper for tax planning, tax preparation, and tax strategy ensuring that you, as the business owner, are not overpaying or underpaying in taxes, and keeping you out of trouble with the IRS.
Bookkeeper
Sends you monthly reports - P&L statement, balance sheet and any kind of special reporting you need
Records & categorizes every single income & expense transaction and reconciles checking, savings & credit card accounts
Provides clear information for you to know the financial health of your business
Files 1099's and reconciles sales tax and payroll liabilities
Keeps an eye on potential errors where automated systems cannot
Maintains & balances subsidiaries, general ledgers, and historical accounts
Provides year-end financials and tax documents to the tax accountant (CPA)
Tax Accountant (CPA)
Works on a quarterly or yearly basis
Not bookkeeping experts, though their role overlaps with bookkeeping
Creates tax strategies to save money
Stays on top of tax laws
Keeps you in good standing with the IRS
Uses your prepared books to analyze your business and implement high level planning
Gets accurate books from your bookkeeper to then file taxes so you’re not overpaying or underpaying in taxes
Handles big-picture recommendations for your business that include legal changes, legal obligations, vision for the company, corporate tax return and possibly personal tax returns
Helps you choose what kind of entity you should be. Is LLC right for you or S-corp, or C-corp, for example?
Ready to get financial clarity? We help coaches transform their numbers into actionable insights, empowering you to make informed business decisions and optimize your practice’s financial health, through our affordable bookkeeping services, CFO consulting, and free monthly training “Understanding Your Reports”.