When Kirstin Reeder’s first-ever bookkeeping client turned out to be a tour operator, she didn’t expect it to change the course of her business. But that relationship revealed how often tour operators are misunderstood by traditional accountants. Today, Kirstin and her teammate Amber Call run Purple Sapphire Business Solutions, a firm focused entirely on the unique financial needs of the tour and activity industry.
This episode is packed with real-world guidance on how to set up your books, track profitability, avoid fraud, and prepare for seasonality. Whether you are just getting started or running a multi-day operation, Kirstin and Amber share the habits and systems that help operators build financially healthy businesses and reduce stress at tax time.
Top 10 Takeaways
1. Cash or accrual is not just a technical choice. It impacts your entire cash flow strategy.
If you accept bookings well in advance, using cash-based accounting can make you look more profitable than you are. That leads to tax bills on money you have not yet earned. Accrual accounting matches income and expenses to when the service is delivered, giving a more accurate financial picture.
2. Tour businesses need a bookkeeper who understands the industry.
Standard bookkeeping approaches do not account for the unique realities of tour operations. You need someone who understands platforms like FareHarbor, seasonal booking patterns, guide payments, and vendor structures. Industry-specific expertise ensures your books reflect how your business actually runs.
3. Job costing helps you understand which tours make money.
Tracking your revenue and expenses at the product level is essential. If you do not break it down tour by tour, you cannot see what is profitable and what is not. This allows you to refine your offers, cut what is not working, and scale what is delivering real value.
4. Vendor overcharges are more common than you think.
Amber once identified a $20,000 overcharge that had gone unnoticed. Many operators rely on vendor invoices without comparing them to actual usage. Creating a habit of regular review could save thousands.
5. Internal controls are essential, even for small teams.
If the same person handles both money and bookkeeping, your business is vulnerable. Set up clear approval processes, limit access to sensitive accounts, and create basic checks that protect you and your team.
6. Early habits shape long-term health.
Running your business through a personal bank account or skipping receipts may seem harmless at first. Over time, these habits make your business harder to track, harder to grow, and harder to sell. Set yourself up with clean systems from the beginning.
7. Give guides an easy way to submit receipts.
Do not expect your team to manage paperwork manually. Use tools like Slack channels, shared folders, or expense apps to collect documentation in real time. If your system is easy, people will use it. If it is not, they will not.
8. Seasonality is predictable. You can prepare for it.
Many operators feel surprised by revenue dips even though they happen every year. During peak season, set aside funds to carry you through slower months. Some operators also explore new offers or markets during quiet times to keep revenue flowing.
9. Embarrassment keeps people from getting the help they need.
Kirstin and Amber often hear from clients who are afraid to show their books because they feel disorganized. But messy books are fixable. Getting support sooner reduces stress and leads to better decisions. A good financial partner is there to help, not to judge.
10. Small steps still move you forward.
You do not need to overhaul everything at once. Start by separating your accounts or reviewing your expenses each month. Download their free audit tool or reach out for a consultation. Action builds momentum and clarity.
Explore the Resources from Purple Sapphire
Want to spot the hidden leaks in your business expenses?
Download the free Expense Audit Calculator that Kirstin and Amber created just for Tourpreneur listeners:
https://purpletaxes.com/tourpreneur-podcast-offer
Ready to get support tailored to your tour business?
Head to purpletaxes.com, click “Choose Your Path,” answer a few quick questions about your business, and you’ll get a link to schedule time with their team.
