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?
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