Horse Boarding: Profitable or Problematic?

Recently, my family added another member to the family in the form of a fourth Arabian. We hadn't planned to get another horse nor did we want or really need one. But we heard from our trainer that there was an owner who was distraught because she couldn't afford to continue to pay board, farrier and vet bills because her husband had lost his job. Of course, we had to help so we agreed to lease the mare for this show season so her owner wouldn't have to sell her.

This event made me start thinking about how many other owners are not paying their board bills on time (or at all). I reviewed some of our current clients' accounting records and found a 45% increase in late payments over the past six months and my team immediately began working on a plan to help them collect their fees faster. Here are some ideas we generated:

• Only about 10% of our customers were allowing their clients to pay using credit cards. So we set them up with very inexpensive credit cards processing capabilities.
  
• We drafted a letter to each boarder explaining the need to keep credit card on file and if their payments weren't received by the 5th of each month, the credit card would be processed.
  
• We altered the billing process for some of the clients and began invoicing them for board twice a month (on the 1st and 15th) allowing them to make two smaller payments rather than one large one.
  
• We developed an incentive program that gave boarders a discount if they prepaid for three months of board.
  
• We analyzed the cost of keeping the boarders' horses and in a few cases, we recommended ending those relationships. (These were the extreme situations where board hadn't been paid for months. It doesn't make sense to keep a horse that isn't generating revenue if your barn is full and you are turning away other potential boarders.)

After implementing some or all of these ideas, our clients are now getting their board fees paid on time (or early). Their cash flow has drastically improved and they are able to focus on their horse businesses rather than trying to collect monies from their clients.

And our new horse...she's great and my husband will be riding her on the Arabian circuit this year!

Equine Bookkeeping & Accounting

Providing Horse Businesses Nationwide With Bookkeeping and Accounting Expertise At Prices You CAN Afford

EQ Bookkeeping is dedicated to providing equine businesses with the financial support you need to help you run a successful company. We take the stress and frustration out of managing the paperwork and details, and allow you to focus on your horses and clients. We own and breed horses, compete in shows, and overall understand the challenges you, as a business owner, have to face. Our goal is to make things easier for you (and help you avoid problems with the IRS).

Most importantly, our services are priced at an affordable rate that won't cut into your profits. Running a horse business can be difficult so we price our services at rates that make the decision to get help a "no brainer."

We are experts in Equine Accounting so you don't have to be!

Bookkeeping Services for Horse Owners / Equine Businesses

As part of our comprehensive bookkeeping services for the equine industry, we will:

• Pay your bills for you
• Send invoices to your customers
• Collect money owed from your customers
• Balance your checking account
• Prepare Monthly Financial Statements
• Help manage your payroll
• Help manage your contract employees (1099)
• Help determine which customers are profitable
• Help determine which lines of businesses are most profitable
• Design and build reports most useful to you

Contact us for a free equine business analysis and customized quote for services.