Hi Im new to quickfile and was hoping i could get some advice re setting up quickfile. My business is a fitness studio where i rent out space and manage the payments and bookings for self employed/independant fitness instructors. Basically on my income side i have a management fee and a rental fee so not particularly complex. On the expense side i have the usual rent, utilities etc.
The difficulty i have is how to manage the client payments in and intructors payments out.
Basically client pays say £100 into the studio bank account which is to be used for classes. At the end of every month i create a summary of how many clients the teacher saw and the total value of these. I also calculate the fees the teacher owes me. I then pay the teacher the difference between these values. All payments go through a single bank account.
THe easy way to do this would be to invoice the client and pay the teacher a “wage” however this doesnt reflect the actual business The problem is face is that i only want to account for my fee income not the total amount the client pays, as the teachers are self employed and i therefore aren’t paying wages. but want to be able to reconcile my bank statement. hopefully someone will be able to help
Please keep in mind I am not and accountant nor bookkeeper.
My question on the above would be who does the “Sale” of a class belong to, you or the self employed teacher?
If it is you you would be required to record the sales invoices for the classes.
If it is the teachers why are the clients paying into your studio bank account and not the teachers directly?
Hi Steve thanks for the response. Basically the sale when they actually teach a client belongs to the self employed teacher. The clients see different teachers on different days but they get a discount if they block book a number of sessions. The set up means that the individual teachers dont have to run the admin side. Kind of like hairdressers renting chairs in a salon just that the is a credit that they can see who ever they like.
When you then add up the classes on their merchant account you can post money out transaction (from your bank) for the total less fees (in example 10% fees) leaving the fee amount on their account.
The whole process shows £200 coming into your bank £180 paid to teacher and £20 fees paid by teacher
This example allows you to record individual teacher expenses on their own account but you could have just 1 merchant account and put them all in there if you wish.
