Balanced Books – the yoga of finance!
Each business has different dynamics that set it apart from other businesses. No matter what industry your business is in, deductible expenses are relatively similar. Our focus today is the Yoga industry.
Where do you teach?
If you are renting a space or multiple spaces, you can write off your rent as a business expense (please make sure you issue your landlords a 1099 by January 31, 2018). Own your own studio? You can deduct your mortgage interest and your property taxes. Regardless of rental or ownership, you can deduct utilities and insurance on the studio.
Every yoga instructor needs supplies. If you supply your own mats, water, non-slip gloves, blankets, straps, etc.- you can deduct them!
Any type of continuing education is also deductible. If you enroll in a Yoga Teacher Training certification, or if you travel to attend a yoga conference, you can deduct hotel expenses, food, and fuel. If you travel quite a bit, you can opt for the mileage deduction over actual vehicle costs.
Let’s say you have teachers on payroll, you can deduct the wages and your part of the payroll taxes. If your instructors are contract labor, you can deduct that expense as well. Please be sure to keep all your receipts, or have proof of the amounts.
Where do you need to focus?
Monthly, a bookkeeper can record your expenses and income to determine if you have a profit or loss. If you have a profit, tax planning can come into play. With expenses broken down, you can focus on where most of your money is being spent, and where you could possibly spend more.
A proper balance sheet will be issued. It will display your bank account balance and your loan/credit card balances. A balance sheet and profit and loss statement are items that would be needed should you ever need a loan or line of credit for your company.
The business of yoga (and taxes).
Payroll taxes will be calculated and set to be paid on time. If you have retail sales, give your bookkeeper your sales number and your sales tax return will be filed and set up for payment. The tax return can be done quickly and easily because the bookkeeper will have all the information already inputted into the accounting software from the year.
Balance your body…and your books.
There are many benefits to having a bookkeeper take care of your yoga company’s needs. From assisting you on which expenses are deductible to preparing and filing your tax return, a bookkeeper will look out for your company and work with you so that you can focus on bringing the benefits of yoga to your clients!
Yoga helps the body and mind stay balanced and relaxed. A bookkeeper does the same for your financials: keeping it balanced and flexible. Contact us for bookkeeping and accounting needs! 256.705.3585