zingFit Revenue reports display financials on both an earned and deferred basis.
Deferred Revenue
Deferred revenues reflect situations in which money has been received, but goods and services haven't been provided. These revenues are sometimes known as "deposits" and they are not recognized as revenues in the income statement. Examples of deferred revenue sales for fitness studios are:
A ten-class package
A monthly membership
Gift Cards
Store Credits.
Earned Revenue
Earned revenues are obtained from the studio providing goods and services. Under the accrual basis of accounting, revenues are recorded at the time of delivering the goods and services, even if cash is not received at the time of delivery.
- Count-based packages
on the Earned Series Revenue report - attendance earnings from a class Series are calculated according to the number of classes redeemed divided by the price paid for the package.
on the Attendance with Revenue report - same as above.
- Unlimited packages
on the Earned Series Revenue report - attendance earnings from a class Series or Contract are amortized according to the number of days of the month that the package is active that month.
on the Attendance with Revenue report - attendance earnings for a class Series or Contract are calculated using the "Estimated Price Per Class" field on the Series or contact form.
- Count-based Contracts (auto-pay)
on the Earned Series Revenue report - in the Revenue from enrollment section, attendance earnings from a class Series are calculated according to the number of classes redeemed divided by the price paid of the package AND in the Revenue from package expiration section, the remaining value of the package will be calculated.
on the Attendance with Revenue report - only attendance earnings from the Series are calculated according to the number of classes redeemed divided by the price paid of the package.
Accrued Revenue
Accrued revenues are used for transactions in which goods and services have been provided, but cash has not yet been received. Businesses typically invoice for these types of services and, revenue is earned when the cash is deposited in the business bank account.
zingFit Reporting
zingFit provides a number of payment and revenue reports including:
Sales by Payment Type - Gross receipts itemized by payment method
Series Summary - Class packages and membership revenues itemized by Series Type
Merchandise Summary - revenues of retail goods segmented by category
In these reports, studio owners can choose to have Income Mode turned On to show Earned Revenues, and Off to show Deferred Revenues.
Income Mode On
When Income Mode is on, the report is showing Earned Income.
For ten-class packages, only the class credits that are used by the customer are considered
For monthly memberships, these earn income evenly across the recurring term (typically one month), so a $120-per-month contract would earn $4/day in a 30-day month
Gift Cards sales are reported as non-income
Store Credit sales are reported as non-income
In Income Mode, Gift Cards and Store Credits REDEMPTIONS are not reported as payment types, but revenues are reported by the payment type used to purchase the Gift Cards and Store Credits.
Income Mode Off
When Income Mode is off, the report is showing Deferred Income.
For ten-class packages, the entire purchase of the package is considered
For monthly memberships, the entire purchase of the membership term is considered
Gift Cards sales are reported
Store Credit sales are reported