December is here. Your fitness business deserves a proper close to 2025.
Year-end reviews help you close books cleanly, verify compliance, and set strong targets for January. Most trainers overlook critical tasks until it's too late.
This checklist covers eleven essential areas. You'll review contracts, update financial records, and confirm staff classifications.
You'll also audit waivers, check insurance coverage, and analyse client retention patterns.
Complete these tasks before 31st December. Your business will start 2026 on a solid legal, financial, and operational footing.
Start with your client contracts. Review every membership agreement you currently use.
Check cancellation policies, payment terms, and renewal clauses. State laws change regularly. Your agreements must reflect current requirements.
Pull all active contracts from your files. Read each cancellation policy carefully. Verify payment schedules match your actual billing practices.
Update outdated language. Remove any ambiguous terms that could cause disputes. Make sure liability clauses remain clear and enforceable.
Test your contract flow with new clients. Ensure digital signatures work properly. Confirm that clients receive copies immediately after signing.
Action items:
Your waivers protect you from claims. They need annual reviews and updates.
Check every waiver format you use. Standard adult client forms differ from youth programme requirements.
Parent consent forms need specific indemnification language.
Review injury reporting procedures. Verify that incident forms capture all necessary details. Update emergency contact protocols if needed.
Inspect your waiver storage system. Digital files must be secure and searchable. Paper copies should be organised and accessible.
Consider legal changes in your jurisdiction. Courts regularly update standards for valid liability releases. Outdated language weakens protection.
Action items:
Financial clarity drives better decisions. Pull your whole year's data now.
Generate your profit and loss statement. Review every revenue stream and expense category. Compare this year's performance against last year's numbers.
Analyse your balance sheet. Check asset valuations and liability obligations. Verify that accounts receivable match your outstanding invoices.
Review your cash flow patterns. Identify seasonal dips and peaks. This insight helps you plan better for 2026.
Banking and finance-related expenses like business bank account fees and payment processor fees are typically deductible.
Track every deductible expense properly and ensure you’re up to date with the latest tax laws.
Make sure to review the following core financial documents as part of your year-end checklist. Here’s what to focus on and the key questions to ask:
• Profit & Loss Statement
• Balance Sheet
• Cash Flow Statement
Action items:
Tax preparation starts now, not in March. Gather documentation before year-end.
Compile receipts for equipment purchases, software subscriptions, and facility costs. Include marketing expenses, professional development, and insurance premiums.
Review your business expense categories. Separate personal and business spending clearly. Ambiguous categorisation invites audit problems.
Track mileage for business travel. Document client visits, equipment purchases, and professional meetings. Use a mileage log app for accuracy.
Retirement contributions, such as a SEP IRA or a solo 401(k) for self-employed trainers, are recommended before the deadline to reduce taxable income.
These contributions lower your tax burden whilst building future security.
Calculate your maximum contribution limits. Make contributions before 31st December to count for 2025. Consult your accountant about optimal amounts.
Action items:
Misclassifying workers creates severe liability. Review every person who works for you.
Check your W-2 employees versus independent contractors. Employment law defines clear tests. Control over work methods typically means employee status.
Review how you pay each person. Employees receive regular wages with tax withholding. Independent contractors invoice you for services with no withholding.
Document the relationship. Written agreements should match actual working arrangements. Courts examine real practices, not just paperwork.
Evaluate trainer arrangements honestly. If you set their schedules, provide equipment, and control their methods, they're likely employees. Reclassify before authorities do.
Action items:
Year-end is a natural time to review business structure and compliance. Maintain good standing with all jurisdictions.
Check your business registration status. Most LLCs and corporations file annual reports. Miss the deadline and face penalties or dissolution.
Verify your registered agent information. Keep this up to date so you receive legal notices. Update addresses or agent services promptly.
Review your operating agreement if you have an LLC. Update member roles, profit distributions, and decision-making procedures. Changes to your business require updated documentation.
Inspect business licences and permits. Renew expiring items before they lapse. Track renewal dates in your calendar system.
Action items:
Insurance needs change as your fitness business grows. Review coverage annually.
Check your professional liability limits. Verify that coverage amounts match your current revenue and client count. Increased activity often requires increased protection.
Review general liability coverage. This protects against facility accidents and equipment injuries. Confirm your policy covers all training locations you use.
Inspect property insurance if you own equipment. Update valuations for new purchases. Remove coverage for disposed items.
Examine your claims history. Past claims affect future premiums. Implement risk reduction measures to improve your record.
Compare quotes from multiple personal trainer insurance providers. Rates vary significantly. Shopping around often reveals better coverage at a lower cost.
Action items:
Retention drives sustainable revenue. Understanding why clients stay or leave guides improvements.
Track your retention rate for 2025. Divide clients at year-end by clients at year-start. Multiply by 100 for your percentage.
Calculate your attrition rate. Count clients who cancelled or didn't renew. Divide by total clients and multiply by 100.
Compare these numbers to 2024. Improving retention means you're doing something right. Declining retention demands investigation.
Survey your current members. Ask about satisfaction, challenges, and desired improvements. Keep surveys short with specific questions.
Review exit feedback from cancelled memberships. Identify common themes. Price concerns differ from service dissatisfaction.
Analyse engagement patterns. Which clients attend consistently? Which shows declining participation? Early intervention prevents cancellations.
Our client retention strategies help you build stronger relationships and reduce churn.
Review these metrics to assess client satisfaction, program effectiveness, and churn risk:
• Annual Retention Rate
• Monthly Attrition Rate
• Programme Completion Rate
Action items:
Equipment failures disrupt training and increase the risk of injury. Inspect everything systematically.
Walk through your training space. Check each piece of equipment for wear and damage. Test all moving parts and adjustment mechanisms.
Review your maintenance logs. Equipment should receive regular inspections. Document repairs and replacements properly.
Clean and sanitise all equipment. Year-end provides an opportunity for deep cleaning. Replace worn pads, grips, and cables.
Plan equipment replacements for 2026. Budget for items showing significant wear. Proactive replacement beats emergency purchases.
Inspect facility systems. Check heating, cooling, lighting, and flooring. Schedule needed repairs before they become emergencies.
Action items:
Marketing drives new client acquisition. Review what worked this year.
Analyse each marketing channel. Compare cost per lead across social media, paid advertising, referrals, and website traffic. Focus the budget on the highest performers.
Review your social media engagement. Which content types generated the best response? Double down on effective formats.
Updated advertising guides emphasise a mix of organic content and paid ads to attract clients. Balance both approaches in your strategy.
Check your website performance. Review traffic sources and conversion rates. Modern clients expect easy online contact and booking systems.
Plan quarterly campaigns for 2026. Map promotions to seasonal patterns. January and September typically see fitness interest peaks.
Our guide on creating a lead follow-up system helps you convert more prospects into paying clients.
Action items:
Goals without plans remain wishes. Define specific targets for your fitness business.
Set your 2026 revenue target. Base it on realistic growth from the 2025 performance. Factor in planned pricing changes and capacity constraints.
Industry guides advocate for building recurring revenue through memberships or subscriptions. This creates predictable income streams.
Break annual targets into quarterly milestones. Monthly goals provide frequent checkpoints. Weekly targets drive daily actions.
List all fixed expenses. Include rent, insurance, software subscriptions, and equipment leases. These costs continue regardless of revenue.
Estimate variable expenses. Factor in marketing spend, supplies, and contractor payments. These scale with business activity.
Plan capital investments, budget for equipment purchases, technology upgrades, and facility improvements. Spread significant expenses across multiple quarters.
Our business planning guide walks you through creating comprehensive financial projections.
Set client acquisition targets. How many new clients do you need monthly? What's your target conversion rate from leads?
Establish retention goals. Aim to improve your 2025 retention rate. Minor improvements can have a significant impact on revenue.
Plan capacity expansion. Will you hire trainers? Add training times? Expand locations? Map growth milestones.
Action items:
You've got the checklist. Now execution matters.
Many tasks require organised data. Cancellation-ready invoicing software helps maintain accurate financial records by flagging cancelled sessions.
Proper systems make year-end review faster and more precise.
PT Distinction handles client management, integrated online payments, and programme delivery on a single platform.
Choose accounting software that integrates with your payment processor and generates reports easily.
Our software streamlines operational tasks so you spend less time on administration. Review client engagement patterns, track revenue trends, and manage renewals efficiently.
Complete your year-end checklist faster. Start 2026 with clean books, clear goals, and organised systems.
Try PT Distinction free for 1-Month and see how proper software transforms your personal training business management.
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