Keeping track of sales, earnings, and expenses is fundamental to the overall health and sustainability of your campground. Effective campground bookkeeping will produce the data you need to evaluate your current business model, anticipate challenges, and set attainable future goals.
But despite their proven importance, many campground and RV park owners dread and avoid accounting tasks. In fact, 40% of surveyed entrepreneurs claim that bookkeeping is one the worst parts of running a business!
Wondering if it’s really worth the aggravation?
Here are four reminders of how effective campground bookkeeping is the cornerstone of campground and RV park success.
Keeping track of reimbursable expenses
A reliable system for tracking reimbursable expenses ensures you reap all the benefits you’re entitled to when filing your taxes. Expenditures sorted into categories, such as “repairs”, “travel”, and “campground supplies,” can be recorded quite simply with an online campground accounting software like Xero.
Using a dedicated credit card for business expenses, and updating your records on a monthly basis, will put money back in your pocket come tax time.
Measuring profitability and planning for the future
In order to grow your campground, you must be able to track and compare its finances from one year to the next and from one month to the next.
In addition to reconciling the books and bank statements every month, effective bookkeeping generates records you can use to gain a comprehensive overview of your campground. This data can help you:
- measure year over year profits;
- identify opportunities to cut costs;
- plan for major expenses (such as new amenities, equipment, site upgrades, or staff); and
- develop data-based strategies for expansion.
Preparing for tax season
Few things are more stressful for campground owners than scrambling to get poorly maintained financial records ready for tax season. In addition to the panic of last-minute filing, inaccurate or incomplete documentation can lead to serious penalties, fines, and even an audit.
In the US, 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings!
Save money and get peace of mind with sound bookkeeping. You’ll be assured of compliance with regulations, and will receive a reliable estimate of the amounts you owe long before your tax bill is due.
Final tip: Ask for help with your Campground Bookkeeping
We find that campground owners are passionate about growing their campground – not crunching numbers. It makes good sense to invest in good advice and an industry specialist who can look out for your best interest.
Our CPA firm specializes in working with Campground and RV Park owners to grow the value of their businesses faster and more efficiently than they could alone. Our industry experience can mean the difference in hundreds of thousands of dollars in your campground value when it is time to sell your campground. And, we’ll save you money each year by making sure you have the right tax structure and strategies in place for your personal tax situation. Learn how working with an industry specialist can help you take the headaches out of accounting today. Tell us about your challenges and we’ll let you know how we can help.