The 7-step guide to tax season for fitness business owners
Chances are you didn’t start a business because you were passionate about accounting. While taxes can be one of the most intimidating tasks involved in running a small business, creating an annual tax strategy instead of treating taxes as a once-a-year event will make a huge difference. Follow these seven simple steps to make tax season less stressful.
1. How should gym owners organize financial records?
Organization is the key to successful tax preparation. Buy folders to neatly store all bank and credit card statements, bills and receipts so you can easily access them when necessary. Taking a few minutes to do this will save you hours when it’s time to file your taxes.
2. What tax deductions should a fitness business track?
According to Forbes, “tax rules are not just regulations to be followed; they are also a list of incentives to be used to your advantage.” There are over 300 deductions for small businesses. These deductions are the government’s way of helping you spend money on things that your business truly needs, so make sure you find all deductions relevant to your business. Common deductions for fitness professionals include:
- Gym equipment and repairs
- Staff salaries and contractor payments
- Continuing education and certifications
- Marketing expenses and software tools
3. Why is bookkeeping critical for fitness business compliance?
Having a well thought-out bookkeeping system will do two things for your business. Strictly from an operational standpoint, it will help you save money. Each month you should review your Profit and Loss Statement in addition to your Balance Sheet to keep a pulse on the health of your business. It will also help you stay in compliance. As a business owner, the IRS puts the “Burden of Proof” on you; it is your job to be able to prove your income and expenses. Good bookkeeping is also the best defense against an audit.
4. What expenses should be capitalized vs. deducted?
Not all business costs are created equal.
Some expenses must be capitalized (recorded as assets) rather than deducted immediately. Contrary to expenses, which are deducted from your income, capitalized costs are depreciated over a set period of time. Capitalized costs are part of your investment in the business and are considered assets. In general, there are three types of costs you capitalize: business start-up, business assets and business improvements.
5. How can member management software help during tax season?
In addition to making the day-to-day life as a business owner much easier, the right member management software can also simplify tax season. Poke around in your software to discover which prebuilt tax reports are available to you. You should have access to:
- Gross sales tax reports
- Taxes specific to the services you offer
- Retail tax reports
- 1099 contractor payment summaries
- Exportable transaction history
6. When and where do fitness businesses file taxes?
Your tax requirements largely depend on the legal structure of your fitness business, so whether you operate as a sole proprietor, LLC, S Corporation or C Corporation, your filing requirements will vary. In addition to personal and business taxes required by the federal government, you will also have to pay state and local taxes. Take the time to understand what your business is required to file and when. This will help you avoid any costly penalties and interest not only with the IRS but also with your state.
7. Why should gym owners contribute to retirement plans?
Retirement plan contributions are tax deferrable, meaning you will not pay taxes on that income until you start withdrawing the money. Saving for retirement is also an easy way to reduce your taxable income for the year. If you make $60,000 in a year, but contribute $10,000 to a retirement plan, you will only be taxed on $50,000 worth of income, making this a win-win for small business owners.
Tax season toolkit for gym owners: reports you need & how to get them fast
When you’re running a gym, the start of the year can feel like juggling dumbbells while doing taxes. Between closing your books, filing 1099s, and wrangling vendor payouts, tax season can easily derail your day-to-day operations.
That’s why Zen Planner makes it ridiculously easy to get the reports you need—no spreadsheet wizardry required.
What tax reports do gym owners need to file?
Here’s what’s typically required for U.S.-based fitness businesses come tax time:
- 1099 vendor payments report
For independent contractors or vendors paid $600 or more.
- Revenue summary report
Year-end income reports categorized by source (memberships, retail, events, etc.).
- Payment history report
A running ledger of all transactions for reconciling with your payment processor or bank.
- Sales tax report
If applicable, this outlines the tax collected on goods and services.
Pro tip: These reports aren’t just helpful for the IRS—they’re gold for your accountant and can help you plan better for the year ahead.
How Zen Planner simplifies tax season for gym owners
Instead of manually exporting and cleaning data from multiple systems, Zen Planner lets you generate the essential tax reports with just a few clicks.
1. Automated 1099 vendor reports
Track and export all payments made to independent contractors, including personal trainers, massage therapists, and freelancers.
✅ Built-in filters let you pull by year, vendor type, and payment method.
2. Year-end revenue summaries
Get a crystal-clear view of your gym’s income broken down by category—perfect for planning and budgeting.
📈 Easily export to Excel or CSV and share with your accountant.
3. Payment and refund history
See all historical transactions in one place, including member payments, one-off purchases, and any refunds.
🔍 Use custom date ranges to drill into specific quarters or months.
4. Real-time access, anytime
All reports are available 24/7, so you’re never scrambling during office hours or waiting on customer support.
FAQs: Gym tax prep and reporting tools
What’s the easiest way to prep 1099s for my gym’s contractors?
Zen Planner’s 1099 Vendor Report automatically tracks vendor payments and lets you export year-end data instantly.
Do I need accounting software if I use Zen Planner?
While Zen Planner doesn’t replace a full accounting platform, it integrates with many tools and gives you the key reports your accountant will need.
Can I customize the reports by date or service type?
Yes. All reports support filters by date range, category, payment method, and more.
What if I use Zen Planner Payments—do I still need to track payouts?
Nope! Zen Planner Payments automatically tracks transaction data, refunds, and net payouts, so your reports are already sorted.
TL;DR: What you get from Zen Planner’s tax reports
- Auto-generated reports for 1099s, income, and sales tax
- Custom filters and exports in just a few clicks
- Real-time access to historical data and transactions
Need help? Let’s make tax season painless
Zen Planner customers can reach out to our support team for help navigating year-end reports. Not a customer yet? Book a quick demo and see how it works.
Interested in learning how Zen Planner can simplify tax season? Schedule a demo with one of our Software Specialists today!
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