The Ultimate Cheat Sheet On Salon & Spa Bookkeeping

The Ultimate Cheat Sheet On Salon & Spa Bookkeeping

Whether you manage your own accounting books with a small salon business accounting software, or you have hired a professional salon bookkeeper to help, you will find that managing your books will help play a major role in the success of your salon business.

Even though the salon business is a little different in how it is run, the bookkeeping doesn’t need to be such a challenge.

You will mostly receive income for services, products, booth rentals, and even commissions.  Along with this might include a lease, payroll, products, equipment, insurance and other license fees.  Your salon business will require some of the bookkeeping methods to help you keep your revenue and expenses straight.

Probably the best advice I ever got in my life was from the head of the accounting department, Mr. Hutchinson, I believe at the Glidden Company in Chicago, and he told me, ‘You really aren’t cut out for accounting.

Bob Newhart

Here are some handy Beauty Salon & Spa Bookkeeping Tips:

USE APPROPRIATE SALON & SPA BOOKKEEPING METHODS

You sell to your clients your services and products, so you need meticulous records to keep up with it all.  If you deal with any receipts, you will want to use some sort of binder to track them and divide it into months.  Then use it to keep bank statements, receipts, and deposit slips.  This will provide easy referencing and will protect you in the case of an audit.  So you will want to use your business checks or your business debit card to make purchases.  Always remember to save your receipts and deposits correctly.

Good bookkeeping for salon owners involves tracking expenses.

A salon business with inventory is normally required to report under the accrual method.  However, there are a few exceptions to this rule.  Inventory as items purchased with the intent to resell, like shampoos, brushes, and other salon products you might sell in your salon & spa business.  If your salon fits under a certain annual gross income, and most small salons fit in this group, then you can elect to choose a much simpler cash basis method to account for your inventory.  Simplicity is the main reason Salon & Spa owners want to choose this cash based method.  Setting up and using the accrual method proves to be much more complex to manage for small salon owners.

But if you’re managing a larger inventory in your salon, then we recommend an accrual method of accounting for your salon.

For most small cosmetology, hair, tanning, beauty and other salon & spa owners who are not inventorying heavy, the cash basis will prove to work best in most cases.

If you are unsure, contact a Salon & Spa Bookkeeping Professional

Setup and Use Salon & Spa Bookkeeping Technology

Think about all the services your business offers, products your business sells, and even how many stylists might work in your salon.  Setup any products you will sell.  You will need to setup your business, corporation, tax information, and employees to get started.

Go over your accounts monthly, and track receipts, deposits, and bank statements to your folders.  This would be a good time to consider using proven Beauty Salon & Spa accounting software.

Salon & Spas are cash-intensive businesses.  Features you might need in your accounting software include payroll, inventory, commissions, invoicing, payments and reports.

Hire a Professional Salon & Spa Bookkeeper to Help Out

Salon & Spa owners are no different when it comes to needing help.  If you are not interested in struggling with all the setup and management of the software, look into hiring an online salon & spa bookkeeping expert to come help you.  Rather than struggling with this, make accounting easier by hiring a bookkeeper or investing in salon business management software.  These tools can help you track your expenses, and generate invoices.  This will help you implement bookkeeping practices for your salon business.

Also, don’t be like other salon owners, and wait until the end of the tax year to get their financials organized.  Waiting until the end of the year can also result in more errors so be careful about being too hurried.  If you follow these simple bookkeeping guidelines for salon & spa business, your year-end tasks will be less daunting.  You will be better prepared to meet your salon business financial obligations.

Your main goal is to get clients to come in so you can, in turn, provide them with a great experience, so make sure to use technology to help you.  So, let STAC Bizness Solutions help you with your Salon Bookkeeping.


Looking for a QuickBooks Expert?

QuickBooks ProAdvisor Houston Tx

Working with a QuickBooks ProAdvisor is the best way to learn how to use QuickBooks to help your business grow and flourish. You won’t find a better way to get the support you need anywhere else.

As a small business owner, we realize that you may not have the budget to hire a QuickBooks expert. If you’re looking for a more economical way to get set up on QuickBooks, we provide cloud bookkeeping programs to match any business requirement. Here are our Quickbooks ServicesQuickBooks SetupQuickBooks Training, and QuickTune-up.

You can feel confident in knowing that our STAC Bizness Solutions team are Certified QuickBooks ProAdvisors. Meet Our Team.

If you would like to learn about all the benefits that STAC offers, just give us a call and we’ll provide you all the details. Call us at (844) 424-9637.

Hire a QuickBooks ProAdvisor

To schedule an initial consultation with us, please click the button below.

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Hire a Beauty Salon Bookkeeping Team to Manage Your Salon Business

Hire a Beauty Salon Bookkeeping Team to Manage Your Salon Business

Hiring a Beauty Salon Bookkeeping team to manage your bookkeeping, payroll, and tax preparation for your Salon business will give you more time to work on your salon business.  Running a successful salon requires more than pampering your customers.  It also requires careful financial planning, guidance, management, and tax strategies to reach a successful profitability.

Every small business owner questions outsourcing certain aspects of their business.  As any business owner, a salon owner best spends their time directly with their customers.  When unable to manage all of the financial responsibilities of their day-to-day business.  It’s obviously a good time to outsource the bookkeeping process.

Why Hiring a Beauty Salon Bookkeeping Team is the Right Choice?

Whatever type of salon you own, a bookkeeper can help you support your salon business by handling your bookkeeping tasks and back office procedures.  A bookkeeper will help you manage your salon books:

  • Provide a full review of your Salon business and manage your books.
  • Setup stylist and other employees status.
  • Determine percentages of sales and booth rental rates for independent contractors.
  • Setup your tax and payroll obligations.
  • Provide monthly finance reporting – balance sheets, profit and loss statements, bank reconciliation.
  • Help you determine between a cash method or accrual method of accounting for your business structure.
  • Support your expansion goals and help you secure financing.
  • Provide small business advice – including tax and audit support.

We will work to Maximize the profitability of your Salon Business based on the services, the products your salon business sells.

If you’re looking for help managing your books, we provide salon business cloud bookkeeping programs to match any salon or franchise salon business requirement.

Don’t ever let your business get ahead of the financial side of your business. Accounting, accounting, accounting. Know your numbers.

~Tilman J. Fertitta

Your main goal is to get clients in the door and provide them with a great experience.  Let STAC Bizness Solutions help you with your Salon Bookkeeping obligations.  If you’re looking for help managing your books, we provide cloud bookkeeping services customized to match your business needs.  Here is more information on our salon business bookkeeping services.


Looking for a QuickBooks Expert?

QuickBooks ProAdvisor Houston Tx

Working with a QuickBooks ProAdvisor is the best way to learn how to use QuickBooks to help your business grow and flourish. You won’t find a better way to get the support you need anywhere else.

As a small business owner, we realize that you may not have the budget to hire a QuickBooks expert. If you’re looking for a more economical way to get set up on QuickBooks, we provide cloud bookkeeping programs to match any business requirement. Here are our Quickbooks ServicesQuickBooks SetupQuickBooks Training, and QuickTune-up.

You can feel confident in knowing that our STAC Bizness Solutions team are Certified QuickBooks ProAdvisors. Meet Our Team.

If you would like to learn about all the benefits that STAC offers, just give us a call and we’ll provide you all the details. Call us at (844) 424-9637.

Hire a QuickBooks ProAdvisor

To schedule an initial consultation with us, please click the button below.

Schedule an Initial Consultation
Hiring a Bookkeeper

Hiring a Bookkeeper

Once you set up a business with the best services and products, whether it spans several cities or is a small scale set-up, bookkeeping is usually a major hassle, and yet, a very critical aspect in any business. You may end up launching your business and giving little thought to the idea of who will help you maintain your financial and tax records, but you’re most assuredly going to regret that down the road.

Often enough, business owners resort to online bookkeeping software, thinking the software alone would be enough to handle the business’ finances and that they would be able to do without a dedicated bookkeeper. Using software may even prove to be an effective solution in the beginning, but as your business grows, keeping track of the records and dealing with the various financial intricacies of a growing business with software alone is simply not possible, ultimately resulting in the bottom line suffering.

It is an estimate that every small business owner carries out a bookkeeping session that lasts 10 hours a week. This time is very crucial, and taking it away from the business means that the company will not be able to meet up with the estimated monthly profits. In such cases, if you want a professional and reliable bookkeeping solution, then consider hiring an outsourced bookkeeper. Outsourced bookkeepers offer so much more benefits as compared to the conventional in-house methods of bookkeeping. These benefits include:

MORE TIME FOR YOUR BUSINESS AND WORK

Let’s face it; when your business grows, you won’t have enough time to go through the documents and financial books on a regular basis. This doesn’t mean that you dodge the whole bookkeeping task. It is inevitable, and this when an outsourced bookkeeper comes in. A professional bookkeeper will take this job away from your shoulders and you won’t have to worry about the bookkeeping of your business and only focus on the core aspects of the business.

AVOID MISTAKES AND SAVE YOUR BUSINESS

When a non-professional records anything in the books, the likelihood of mistakes is significant; after all, we are only humans! However, a professional outsourced bookkeeper will ensure that he or she is extra meticulous, because that’s their job. These professionals cut down any chances of mistakes and know their work precisely.

MORE IDEAS, MORE IMPROVEMENT

Yes, because you will allow another person to see how your business is growing financially, it will give you more room for ideas and improvement. Provided it is someone you can rely on and trust you will also see that these professionals have good ideas and insights that you may be overlooking for performance of your business. It is very likely that the bookkeeper you hire turns out to be a financial analyst, so you can consider their advices. After all, you are paying them for their time, so why not take some advantage of this!

PAY LESS

This is another reason why most businesses are hiring outsourced bookkeepers. Generally, you will pay less because you will be paying the outsourced bookkeeper for the work they specialize at, rather than paying an in-house bookkeeper. In most cases, these in-house employees handle other business tasks at the same time and you pay more for them. So it means that you will only pay them for one work and not more.

Hire a QuickBooks ProAdvisor

To schedule an initial consultation with us, please click the button below.

Schedule an Initial Consultation