What to Include in Your Salon’s Year-End Financial Checklist
Sometimes, the end of the year can come creeping in on us. And this time is usually reserved for looking back at the past year and creating plans for the new year ahead. The same applies even in the world of business.
Examining your finances at the end of the year is crucial as it gives you insight into your business's performance over the past year. It can also better help you prepare financially for the start of the following year. But what exactly should you be looking at when you own a salon business? Well, here is a simple year-end financial checklist that will help you get your salon's finances in order.
This is a simple but crucial financial task for any business this time of the year. This is a good check to ensure that you are not ending the year with excess products and not nearly enough to begin the new year ahead. Look at all the products currently being used within the salon, and then make sure you have enough back stock to last you through the following year.
Sales and Expenses
The end of the year is an excellent time to figure out how much you actually spent on products, services and utilities so you can plan how much you will spend during the following year. Remember, your expenses can change, whether it is because you had higher rent or utilities this year or you have plans to upgrade your equipment in the next year.
When you own a business, taxes can be a time-consuming task. Make sure you are aware of the tax laws for your salon, including any tax сredits and deductions you might be eligible for. Get prepared by knowing the minimum tax payments and the different taxes you have to pay.
Financial Goal Setting
This is a great time to plan ahead, both for the short and long term. This is also one of the best times to look back at your past year's goals and see how you've performed so far. Then, make the necessary adjustments to your financial goals and strategies if you see that your business's performance is not meeting your expectations.
After doing all of the above, you should have a good idea of your financial situation. This can help you figure out both how much you will need to keep as reserves for your business as well as how much you can afford to invest in your business for the next year.
This is a perfect time for you to sit down with your business accountant and do a financial plan.
You will be able to plan exactly how much to spend on products, equipment and promotional items while at the same time keeping an eye on how much you will need to save to cover taxes and other expenses.
Now, you have a good idea of what you need to do to prepare your salon's finances for the new year. Not all businesses will go through this checklist, but those that do will have a better idea of the financial prospects of their business going into the new year. In addition to this, they will also have a good idea of what they need to do to make their business more profitable.
Get your finances in order before the start of the new year with the help of New Wave Accounting. We are business accountants on the Gold Coast that provide end-to-end accounting and bookkeeping services that help scale and grow businesses in several industries. Book a free strategy session now!