Commit to Membership Reconciliation (#Cashflow) Tip 3

Why Weekly Membership Reconciliation is Important

Membership reconciliation

Day 3 of 31 Days – How to Improve Your Business Cashflow by Ezypay

A long time ago, the process of membership reconciliation would take several weeks to be processed. After payment for a fitness class or membership has been collected, the membership reconciliation report would then be processed. It would then very likely take another week for the report to be printed and distributed.

By then, the process of verifying enrolled members versus paying members of your gym or fitness center would have been so delayed that another paying month would have passed before problematic memberships are highlighted as non-paying or have outstanding payments pending.

Membership reconciliation is important as it promotes healthy cash flow for the gym or fitness center and ensures that the business is operating in such a way that membership fee collection and all your members’ payments are consistently up-to-date. After all, regular membership fee collection is the main source of income for all gym and fitness centers.

Automate Your Membership Reconciliation

The good news is that thanks to modern technology and cloud-based solutions, membership management software such as iconnect360 can ensure that membership reconciliation can be done on a weekly, bi-weekly or monthly basis – customisable to your business needs. Leveraging on full integration with direct debit payment gateway Ezypay, all membership databases are also updated instantly so it’s easier for your staff to keep track of errant payments before the figures escalate into large figures.

Membership reconciliation should not be done annually or monthly, but on a weekly basis. If you fall behind on your reconciliation, it soon becomes a mountain to climb as members are often not aware that their payments did not go through – especially for reasons such as a newly expired credit cards or banking transaction failure. This will then inevitably lead to many awkward conversations with disgruntled customers who are simply looking for a means of relaxing and improving their quality of life at your gym or club, rather than being hounded for overdue bills.

So in a nutshell, keep your cash flow thriving, your staff motivated and your members happy simply by performing membership reconciliation on a consistent basis.

Download the FREE PDF to read more about cashflow improvement here.

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