Top 5 Accounting Tips for Hair Stylists, Barber Shops & Salon Owners

As a stylist, you’re the expert when it involves knowing what tools to use when and whether or not bangs works for your client. However, when it involves accounting and taxes for little businesses – like hair stylists, barber shops and salons – we’ve got the expert status covered.

To make things simple, we’ve pulled together a number of our greatest advice for keeping things organized and keeping your accounting on point. Here are our top 5 tips for fixing the record-keeping side of your biz:

Get your books found out before you open up shop. There’s no got to worry if you’ve already booked a slew of clients or have a thriving business – just start now if you haven’t already. You’ll always lookout of past tracking at a later point, except for now, just start. Our greatest advice is to stay it simple, and have it's something that’s fairly easy to finish on a routine basis.

Create a ledger. It doesn’t need to be expensive Online Accounting Services, or maybe a flowery spreadsheet. It might be as simple as small notebook where you jot all the financial stuff for your business. Pick whatever works best for you. Just remember that some quite record keeping is best than none in the least.

Keep track of receipts. Especially once you pay cash! Purchase an expandable folder, grab an envelope or go digital (some clients scan receipts, or snap pictures of them with their phone and store them during a digital folder). If you've got a credit card/bank account for your business (you should!) you'll even annotate the monthly bank statements and keep them within the same place as your receipts. Just confirm to stay that paper trail!

Keep your business & personal accounts separate. We mentioned this briefly in #3, but it goes without saying that keeping things separate, keeps things simple. By having your personal and business assets (and expenditures) in several places you create paying taxes, paying yourself, and putting a refund into the business such a lot easier.

Set an idea and stick with it. There’s a reason that we’ve mentioned making things simple from the beginning. That’s because running the business-side of any business takes consistent effort and when it’s confusing or technical, it’s all the less appealing to take a seat down and stay top of it. We propose keeping track of things monthly or maybe bi-monthly if your client base is fairly large. When things are maintained so far, it takes tons less time to manage the cash.

TIP: Wondering what all goes into that ledger we mentioned in #2? We thought you would possibly ask, so here’s what we tell our clients:

Start with recording the present balance of your business account (make bound to add a date to the present line and each line you insert into your ledger)

Keep track of the revenue ($ coming in) – cash or card payments for Online Bookkeeping Services in Austin or products. Don’t forget tips, especially those paid in cash!

Make an inventory of expenses ($ going out) – purchasing products for your clients, rental fees for your booth or building, tools of the trade, etc.

Put a star next to any expenses that are recurring – rent, utilities, insurance and merchandise purchases. This manner you’ll be ready to keep tabs on the typical you spend monthly and obtain a far better idea of what it takes to run your business.

Have more questions? Want the nifty gritty details from a professional? Looking to seek out an excellent accounting service which will look out of the bookkeeping side of your salon so you'll revisit to what you are doing best?