A coworking space thrives on recurring revenue. Members pay monthly for fixed desks, flexible workspaces, or offices, plus day passes, meeting room bookings, and events. Invoices are generated in billing software, and payments are received via direct debit, credit card, or bank transfer. We reconcile both every month and identify which members are behind on payments. We assign returned direct debits and their fees to the respective member.
Security deposits belong to the members as long as they remain members. They are therefore tracked separately and offset or refunded when a member moves out. The same applies to prepayments for longer terms: someone who pays for an office a year in advance has not yet received most of the service. We post such payments so that the monthly report does not overstate a single month, and we give the tax advisor a list of prepayments at the end of the year.
The tax advisor decides whether your services count as renting out space or as a broader service for VAT purposes, and whether opting to charge VAT makes sense or is necessary. For the bookkeeping, this means that the types of revenue must be kept clearly separate so that the tax advisor can assess this. We set up the accounts accordingly.
On the expense side, there’s rent paid to the main landlord, utilities, cleaning, internet, coffee, and equipment. Equipment is depreciated over several years; utilities are often passed on to members. We keep track of which of these expenses are charged to members.
Coworking spaces often serve as meeting places and event venues as well. Meetups, workshops, and private parties generate additional revenue, but also incur costs for catering, technology, and staff. Some operators have partners who offer discounts to members or rent out advertising space. We record this revenue separately so you can see what the core business contributes and what the additional offerings bring in.
