1. Prep Before Opening
The first step of successful financial bookkeeping is to be prepared before you even open your doors. If you’ve been operating for a few years without utilizing any bookkeeping methods, executing a system can be extremely time consuming and expensive. By being proactive with your salon’s finances before servicing clients, you’ll have a few less headaches and obstacles to deal with.
2. Establish Your Ledger
Whether you prefer to set up your ledger by hand on paper, an Excel spreadsheet, or an accounting software such as QuickBooks, you’ll need to start by documenting your current balances of all accounts. You’ll need to record all sources of incoming revenue from the services you’re providing customers and the products you sell, as well as all the payments you make. It’s also important to keep track of the business expense payment types, such as cash and credit charges.
After you’ve established your ledger and have begun documenting your profits and payments, you’ll need to compare your books with your bank statements. This will help you examine and decide what expenses might be holding you back, and which ones will help your salon move forward.
3. Track ALL Expenses
Keeping track of every receipt, slip, or invoice can be daunting, but is well worth the effort. Even if you use cash to pay for a business expense, recording even the smallest of purchases is necessary. Also, be sure to have separate credit or debit cards for both your business and personal accounts—this makes differentiating between finances much, much easier.
4. Stay Current
If you want your salon to be successful, be sure to stay disciplined with your bookkeeping system. Establish a weekly routine of documenting all income and expenses on a specific day, turning it into a habit that you’ll stick with for years to come. Don’t let months pass by without tracking expenses.
5. Hire a Professional
If you’re simply not interested in handling all the setup and managing the software, consider hiring an accountant to help with your salon. An accounting firm such as Pure Profit Group can help support your business by handling your financial responsibilities and bookkeeping tasks. In turn, you’ll be able to focus more on providing the best possible service for your clients. Don’t wait for mistakes to happen or opportunities to pass your business by—outsource where you see fit so you can concentrate on your bottom line.