Bookkeeping For Small Businesses: Spa And Salon Guide
Last Updated May 1, 2023
Are you thinking of opening a salon? It is a steady and profitable business but if you do plan to open one then you need a strong head game and plan. Bookkeeping for small businesses like spas and salons is essential and can be easily taken care of. When it comes to owning a business you want a pretty safe bet, to begin with. The beauty industry is valued at $532 billion per year. This being said, even during the recession in covid times the industry remained stable in comparison to others.
The basic cost of the salon setup is at least $62,000! Launching your own spa and salon business is a challenging feat.
But you can overcome the hurdles.
No matter how much you invest, you want to practice the right tips that help ensure your salon’s success.
Opening Cost For A Spa And Salon
Before you can begin dreaming about the profits from your spa and salon business, you need to map out your finances. Securing the funding is crucial at this initial stage. Here are some things you need to consider in terms of costs;
- Licenses and permits – Begin with the license for your business. In case you need permits in your area, avail of them. For instance, if you plan to sell beauty products while providing regular services you will need a seller’s permit.
- Land and building – Find a place that best meets your business needs. You will need to either rent or buy. In case you choose to rent, a security deposit is required upfront.
- Payroll – Hire the best accounting services for salons to take care of the wages for the employees.
- Equipment – Your spa and salon business will require a bundle of equipment to run the show. Beauty supplies, chairs, computer, internet connection, et.
- Inventory – Stock up on the products and supplies you’ll need before the opening.
- Insurance – A decent insurance plan must cover your business.
Financial Curator – Bookkeeping Services For Spa And Salon Businesses
The opening cost is directly perpendicular to the bookkeeping system you will maintain. You will be receiving income for the products and services, booth rentals, and festive commissions. To make the spa and salon business a success you need to hire professional bookkeeping services to ensure success.
Manual bookkeeping practice is outdated. Upgrade your bookkeeping methodology by using the latest accounting software that is easy to maintain and effectively used by bookkeeping services.
Your products and services are the selling points for your business. So when you deal with receipts you need to keep track of the bank statements, receipts, and deposit slips. A professional bookkeeper can cover all the tasks.
Keeping your business size in mind, you can always hire a remote/online bookkeeping service. The accountant or bookkeeper you hire will be responsible to track expenses and maintain ledgers, and other important documents.
Establish the Ledger
There are two ways you can maintain a ledger or the bookkeeping service will do it on our behalf by manually using an Excel sheet or using the software (we will get to it shortly). As we said before, the use of the manual practice is not conventional in current times, so maintaining and documenting the current balances can be done online by a professional bookkeeper.
Professional bookkeeping services always appoint an expert in the relevant field. They take care of every receipt, slip, and invoice in an efficient manner. Recording selling and buying of every product is also updated separately.
For instance, a professional bookkeeper will advise you to maintain credit and debit cards for business separately from a personal account.
Use of the Latest Bookkeeping Technology
As said, you need to upgrade the accounting game here. You need to take care of the corporation, tax information, employees’ salary and benefits, and other expenses. Going over accounts is a taxing task.
This is a good time to consider using accounting software. Even if you are not interested in hiring a full-time bookkeeper you can do the books on your own with the online tools. Such software cover, payroll, inventory, commissions, invoicing, reports, etc.
Marketing Side – Create Goodwill For Your Business
A healthy track record of all the finances can help you better plan the marketing you will be needing to promote your spa and salon business.
At the time of opening, you need to keep your audience in mind. Your business will become part of the local community so you can try the following tips that best meet your financial aspects;
- Online directories – digital presence is crucial.
- Online reviews – Ask your customers to give reviews on your website (if you have any) and on the social pages.
- Affiliate with local small businesses – It’s a great measure to secure funding and also broaden your customer base and so on.
What is Salonist and how will it aid in business growth?
Four primary factors are frequently the cause of salon and spa failure:
- Poor management or a lack of an appointment management system
- Inventory management and sale tracking are absent
- There is no client
- Absence of staff management
The Salonist manages appointments, clients, invoicing, staff commission, and a lot more in this location. Salonist offers management of client history, package management, reward, and membership in addition to all the incredibly helpful features. Because Salonist works in the cloud, there is no software to install and everything is automatically backed up and protected. It also connects to a variety of other programs, like accounting mailers, website integration, and many others.
Bookkeeping is crucial to a salon and spa business because:
- Keep a sales ledger: You should keep a record of all money coming into your firm, including payments from customers, sales of cosmetics and other beauty products, payments from trade shows, and rent from salon space rentals.
- Record acquisition Ledger: Tracking your expenses is crucial to comprehend your organization. Keep a record of your expenses and make sure to save all of your receipts and invoices.
- Debt: If you have loans or credit cards, you should keep track of your balances, recent expenditures, and payments to your creditors. As proof, keep all of your credit card statements and receipts. Keep a record of your repayments if you borrowed business financing from friends or family.
- Excel Spreadsheets: Small businesses with few employees may decide to use a spreadsheet in place of more sophisticated payroll accounting systems. Expenses can be organized into categories.
- Using bookkeeping software could help you save time. More effectively tracking sales and expenses will be possible.
- Tax return: The main form is used to assess how much tax you owe or the government is owed. It includes questions concerning your sales income, savings, investments, and pensions. If you work for yourself, you are required by law to submit this.
More financial responsibility is required in the salon and spa company sector. Just as asset managers, lenders, hotel operators, and others need trustworthy and realistic information regarding their business’s economic viability as a business and its contribution to the core business, the business directors must be able to measure, monitor, and manage their spa’s performance accurately and consistently. They must also be able to compare it to that of other competitors within their chain and the spa industry.”
Do Not Ignore Bookkeeping Services for Spa and Salon Businesses!
A business owner is rather busy planning and implementing the changes in the business once they reach the profit margin. At this point, it is crucial to start maintaining your bookkeeping and other accounts.
To help you during this time, My Count Solutions gives you the ultimate financial opportunity your business can benefit from. If you want your tasks to become less daunting and more managed then you can book a demo right now.