Running your Salon or Barber Shop can be time-consuming and involved, just like owning any business! Finding the time to take care of your business’s books can be nearly impossible but that doesn’t make it any less important.
These five bookkeeping tips for hair stylists can help save you time, money, and headache as you continue to grow your business and do what you love.
1. Have a budget and stick to it
When you started your business you had a vision for it, right? A budget may sound restrictive to you but really, a budget helps you achieve your goals and visions quickly. Don’t look at a budget as a way to limit your spending, but rather a fast track to make your salon goals a reality! Using a budget can tell you if you are able to purchase that new styling equipment or add another stylist to your team.
2. A qualified bookkeeper is invaluable!
There are many unqualified bookkeepers out there and let me tell you, they can do much more harm than good. Take it from me, a business that uses someone who has no experience in bookkeeping or is not qualified for the job has no idea what the true financial health of their business is. It is so important to have a bookkeeper that cares about your success and will work with you so that you can grow you business.
3. Maintain your books throughout the year
When I say keep up with your bookkeeping regularly, I’m not saying that you should be doing your books all on your own. Think about the time and effort you put into learning how to be an amazing hair stylist. Would you let someone who has no training cut your hair? So why should you be expected to keep your books yourself?
A bookkeeper has had training just like a hair stylist and works exclusively on keeping your books. This means that your books will always be taken care of and you can focus on doing what you love.
4. Don’t miss out on tax deductions
So many small businesses, including salons and independent stylists miss out on tax deductions year after year. You could be losing hundreds of dollars year after year if you don't know what to look for. The solution is to work with your bookkeeper to make sure you don’t miss out on any deductions.
Side note: Did you know that bookkeeping services are tax deductible!
5. Find a bookkeeper that works exclusively with hair stylists
The majority of bookkeeping is the same across all businesses, but there are things related to the hair salon industry that are unique in their bookkeeping needs. Hiring a bookkeeper that works with salons and independent stylists exclusively will be one of the best decisions you can make as a business owner.