As a professional in the fitness industry, you know the importance of a fit mind and body for overall wellbeing and success in life. So too, your finances need to be in tiptop shape to ensure your business is successful and you can continue to empower others to be fit and well. But do you really know what you can and can’t claim? Do you know how to maximise your income and make it work harder for you? Sadly, whilst many fitness professionals are excellent at what they do, their businesses suffer due to mismanagement and lack of knowledge around taxation compliance and financial fundamentals.
Here are some key points for fitness professionals to consider when operating an effective business:
o Equipment: The cost of gym equipment, weights, machines, and other tools needed for personal training or group fitness classes.
o Training and Education: The cost of continuing education, certifications, and courses related to fitness or health is tax-deductible.
o Advertising and Marketing: This includes the cost of running a website, social media advertising, flyers, or business cards.
o Vehicle Expenses: If you travel to clients or between locations, you can claim deductions for car expenses. You can use the logbook method or cents per kilometre method to calculate deductions.
o Home Office Expenses: If you run your fitness business from home, a portion of your home expenses (electricity, internet, office supplies) may be deductible.
If you’re a sole trader, you are responsible for contributing to your own superannuation. However, if you employ others (e.g., fitness instructors), you must ensure that you pay superannuation for your employees.
Make sure you report all your income accurately, including any cash payments you might receive. The Australian Tax Office (ATO) requires all income, whether paid electronically or in cash, to be declared.
Record-keeping is essential to ensure that you claim all of your legitimate business deductions. Use accounting software or hire a bookkeeper to track expenses and income. Keep receipts for at least five years.
Depending on your income level, you may qualify for certain tax offsets or credits. Make sure to check for eligibility when doing your tax return, and consult a tax professional if you’re unsure.
By keeping track of these tips and staying organised, you’ll be better prepared for tax season. Always consider working with a qualified accountant who understands the specifics of your industry for the most accurate and beneficial guidance.