As a salon owner, you’re the expert when it comes to the hottest trends, the latest colour and coolest cuts. But when it comes to taxes and accounting for small businesses, you know, hairdressers, barbers, clinics – it can be a little tricky!
Not to worry, we’ve got you covered so you can maintain your expert status!
We’ve put together our tops tips to keep your accounting in tip top shape.
Set a plan and stick to it
The first step to becoming a pro with your accounting is to create a plan and stick to it! Sounds simple right? You’d be surprised at how many people don’t do it! Running the business side of a salon takes constant energy and effort and when the going gets tough, you’ll need your handy plan to help you find your feet and get back on track. We suggest keeping track of things monthly or even bi-monthly depending on the size of your client base. When everything is up to date, it takes a lot less time to manage your finances.
Keep your business account separate from your personal account
It sounds obvious, but this is super important! It goes without saying that keeping things separate, keeps things simple. Keeping your business expenses away from your personal finances makes paying taxes and putting money back into the business so much easier.
Track all expenses
Keep track of everything! Always get a receipt and look after them! We recommend purchasing an expandable file folder and keeping them together in one place. If you want to be tech savvy, you could scan receipts or take pictures on your phone and store them in a digital folder.
Reconcile at the end of each month
It is important to keep track of income and expenditure on a monthly basis. This will improve visibility and help you to visualise which areas of the business are succeeding and the areas that may need improvement. In the long term this will help save time and make a tasking job seem smaller!
Consider accounting software
It’s difficult to think of an industry where technology isn’t an essential part of everyday life which grows more and more each day, so why should your accounting be any different? There’s a reason that technology continues to dominate and it’s time to get on board! Using a digital tool will help streamline incomings and outgoings and keep tax’s in order, making your life much easier!