I’ve been hairdressing since 1998 and I’ve been a salon owner since 2001. I set up Bravo Hairdressing with pretty much no knowledge of running a business, very little capital and almost no Plan B! BuildYourSalon.com is the resource I wish I’d had back then. Today, I’m going to share with you a little business tip from it in regards to having a salon accountant. I have been a hairdresser and a salon owner for quite a while, but I really believe in delegating to an expert.
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As well as being a salon coach and mentor, you’ll appreciate, I’m sure, that managing my salon business is a handful. And staying on top of the numbers is hard work too. But, of course, essential. My advice is “don’t stay on top of it without professional help!” You see, having a degree in banking and finance still doesn’t mean I do the salon accounting in my own salon.
Find someone who knows what they are doing, an expert in their field. Ideally, you need to find someone who can do all three for you:
Monitoring and keeping of invoices and receipts/day to day running of your business.
This is where I see most salon owners wasting their time. A good bookkeeper will have an hourly rate far below what you could be earning in your salon business. I’ve said it again and again: you can’t be a £1000 an hour business owner doing £25 an hour jobs.
Usually, an accounting firm will charge more than a freelance bookkeeper – if you’re going down the freelance route, find someone who can integrate their systems easily with your salon accountant. The best way, I’ve found, is to ask your accountant for the recommendation – they normally have a few they have worked with successfully before.
Submit returns, forecasting and giving financial planning input.
The difference between ‘accounting’ and ‘management accounting’ is enormous. You need proper, regular performance reports for your business. A regular accountant won’t do that for you – a management accountant will relish it!
And Of Course, Payroll!
Three Big Wins In Your Salon Accounting Relationship
- Plan: I make sure that I sit down with my salon accountant and we brainstorm what I want my business to achieve in the next 12 months or so. Your goals and vision for your business are important in the planning process. If your accountant is someone who is not willing to help you out in the planning process, it’s time that you find another one. They can help you understand if you are growing your business or if you are in a not-so-good financial situation.
- Report: I meet my accountant once a month for the management report that I need. But you could meet your accountant every 2 months or so. Never accept just an end of year report from your accountant. If you have that kind of accountant, you know what to do. Understanding the reports and your financial situation will be a massive help to you as a salon owner in your day-to-day decision making.
- Automate: It’s a hassle having your accountant chase you because you have that missing piece that she needs to complete her report. I’ve discovered a hassle-free way of having my accountant finish her report without the need to always chase me:
- I’ve scheduled to have my POS System send her an end-of-month report automatically
- Bank statements are automatically sent out to her
- Expenses reports are sent out to her via an app we downloaded (so I can just throw out the receipt).
Where To Find A Salon Accountant?
Paying an accountant for their services should be worth it. So make sure that you get the most out of them. Time and again, I hear “my accountant doesn’t do anything for us apart from returns,” yet when I probe a little deeper, I find the accountant hasn’t actually been asked for anything more!
Keep pushing for timely, relevant information that helps you run your business, and that is presented in a way you understand. And if you hit a brick wall, it is probably time to shop around for new help.
Remember that your salon accountant should be your best ally! The best way to find one is by referral. That way, you know that their service has already been tested and is recommended. Shop around. A variety of candidates is ideal and will allow you to choose the best fit. Take your time making your decision, make sure that you are choosing someone who understands your business, your plan and is someone who you can get along with for a number of years.
Before you go, find out how you too can get December numbers in April, click here!
Got a question for Phil? Email him at firstname.lastname@example.org! Got general feedback? Let us know either in the comments below or tweet us @ThePhorestWord! (Pssst! We’re on Instagram too!)