3 Bookkeeping Tips for Hairdressers and Salon Owners
Running a salon involves a blend of skills, most of which includes keeping track of trends and understanding what style works for various clients - be it a hair, nail, tanning, spa, or beauty salon. In between the snips, cuts, and gossip you often hear in salons, it takes stable financial planning to ensure the heart of your business remains healthy.
Crunching the numbers on your own will not do you any favors, so it’s best to have a professional by your side to ensure your doors remain open to servicing clients looking for a stylish glow-up.
Tip #1: Prep Basic Permits and Licences Before Opening Your Salon
The best way to start with a successful bang when you launch your salon is to first prepare before you open your doors to the public. All businesses are required to have permits based on the local laws of their region, but it helps to know how often you need to renew them.
Having a professional accountant or bookkeeper to prep your needs allows you to establish a clear business structure, which should help you choose the best entity that can save you money every tax season.
Tip #2: Create a Ledger
It’s impossible to manage a business without having an overview of your financial status, so don’t forget to add ledger as part of your essentials. Most use an Excel spreadsheet, but modern technology makes it easier with accounting software like Quickbooks.
Either way, keeping records of your accounts’ current balances is critical, along with the sources of incoming revenue you get from the products and services you sell. An expert bookkeeper or accountant can help you examine your ledger by comparing your books with your bank statements.
This should help you identify areas that contribute to your salon, and those that need to be cut back.
Tip #3: Keep Track of All Expenses
Businesses know that tracking expenses are all part of a reliable financial system, but small salon owners need to know that this includes recording even the smallest expenditures. Knowing your cash flow by keeping every receipt, slip, or invoice ensures you can keep your business and personal finances cleanly separate.
The Bottom Line: How Accounting Can Set Up a Successful Salon Business
There are various factors to consider when scaling up a salon business, but it helps to remember that your financial capabilities determine how you can move forward. Juggling monetary responsibilities can be daunting, which is why hiring professional accountants or bookkeepers to handle your books is critical.
They can arm you with better clarity on whether you’re making or losing money, allowing you to focus on improving your bottom line.
If you’re looking for quality accountants that provide accounting and bookkeeping services for your salon business in Mermaid Beach, New Wave is your best option! Contact us at (07) 55041999 and see how we can help you!