Your Style Guide for Profitability
Running a successful salon requires more than simply pampering your guests. It takes careful planning, proper financial guidance, employee management, and tax saving strategies to ensure profitability.
Whether you own a hair salon, tanning center, full-service salon, or a corner barber shop, you receive income for services. You may also receive income for products, booth rentals, and commissions. Additional financial obligations could include a lease, payroll, product costs, equipment, insurance, and licenses.
Partnering with a monthly accounting service helps ease the burden of bookkeeping, payroll, and tax preparation, giving you more time to work on your business.
Focus on Your Guests
Step away from the paperwork and focus on the best possible care for your customers. An accountant can support your business by handling your accounting responsibilities and back office procedures.
How an Accountant Can Help Your Salon
- Review your business operations.
- Help you catch up on the books.
- Maximize profitability based on the services you offer, the products your business sells, and how many stylists work in your salon.
- Define employee or independent contractor status for stylists and set up your tax obligations and payroll accordingly.
- Set hourly and commission rates, or determine appropriate salaries for employees.
- Determine percentages of sales and booth rental rates for independent contractors.
- Provide monthly financial reporting including balance sheets, profit and loss statements, and bank reconciliation.
- Offer proactive small business advice.
- 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 tax advice and audit support.
Should I be outsourcing my accounting?
Every small business owner questions outsourcing certain aspects of their business. As a salon owner, your time is best spent directly with your guests and employees. When you are unable to manage all of the financial responsibilities of your business on a day-to-day basis, it’s probably a good indication that you’re ready to outsource accounting.
Don’t wait for mistakes to pile up or opportunities to pass you buy before deciding it’s the right time for professional help. Transitioning from in-house to outsourced accounting is easier than you think.
Curious if we can help? Contact us for a no-obligation consultation today!