Avoid These Accounting Mistakes When Starting a Campground Business
Deciding to start a campsite business can be an incredible opportunity. After all, nearly six out of 10 households can say that someone in their home has gone camping. That means there will be plenty of opportunities for growth — if you approach it in the right way. In order to be a financial success, you’ll need to prioritize the proper accounting procedures. Otherwise, your campground franchise could quickly turn into an economic burden. Here are a few accounting mistakes you’ll want to avoid when starting your campsite business.
- No Separation Between Business and Personal Resources: It’s tempting to pay for campground expenses out of your personal bank account for mere convenience. But that convenience will cost you when tax season rolls around. You’ll need to establish a separate campground business account from the start. This account should be used to pay for expenses and to deposit business income. You should never combine your personal resources with your professional ones. It simply gets too messy too quickly and could even result in an audit down the line. Draw the line and obtain a business account credit card for ease of use.
- Failure to Embrace Technology to Track Expenses: When people look at campgrounds for sale or available sites for camping trips, they’re probably looking to escape the digital demands that plague today’s world. But the reality is that you can’t afford to cut out technology completely. Not only will those who visit your campsite probably want WiFi and other tech amenities, but you’ll benefit from using them as well. You shouldn’t have to keep a hand-written spreadsheet of expenses, balance the business checkbook with pen and paper, or keep a shoebox filled with receipts. That’s only going to result in easily preventable errors and a lot of frustration. Utilize a highly rated app or software recommended by your franchise to ensure that expense reports are easy to create, maintain, and share. That way, you’ll feel assured that your tracking is accurate.
- Not Offering an Online Reservation System: Again, there are times when technology can really improve the experience your campsite business will provide. No one wants to wait until 10 AM to call for a reservation. Today’s travelers want to book their stay 24/7, whenever the mood strikes them. They want instant confirmation that they’ve booked their reservation so they can move on to making additional plans. Providing an online reservation system will not only improve your cash flow but will reduce the likelihood of missing charges, overbooked sites, and problems with payment methods. It’s simply a more accurate and efficient way to go — so you have no reason not to embrace it.
Running a successful campsite business is no easy feat. But with hard work and the helpful resources we’ll provide, you can make it happen. Ready to get started? Contact us today for more information.