Method of doing bookkeeping for Salon or Spa business give road map on how to do bookkeeping and its results. You can chose Cash Method or Accrual Method Whichever method of accounting you choose, you must use it consistently year to year.

1. Cash Method

When using this method, you only record incomes and expenses after the transactions are made. Cash accounting is simple, which is why hairstylists and salon owners tend to prefer it.

2. Accrual Method

In this method, you record expenses and income any time a transaction is carried out, whether you’ve received cash for it or not. While it’s not the most straightforward method, it provides more accurate information since you can calculate and record transactions as they happen

1. Pre incorporation Expenses

You need to be prepared for accounting before you start business of salon or spa. Before you start business there may be some expenses which occurred before registration of company. Such expenses can be CPA Fees , Shop Rent Deposit , Branding expenses etc. You need to keep record of these expenses and claim. Doing bookkeeping right helps you to keep clean records of pre incorporation expenses and helps to minimize corporate taxes.

2. Track Inventory

At Spa or Saloon for giving services to clients business buys branded , exclusive products such as shampoo , hair serum , beauty kits etc. Such product have high cost and get utilized in providing services to customer. By Doing Bookkeeping for Spa or Salon you can track inventory purchases , consumed and closing stock of same. Keeping track of inventory is important.

3. Track All Expenses

For running Salon or Spa business most of expenses are salary , rentals , advertising, reimbursement of employees , consumables , cleaning expenses etc. You may be paying theses expenses in cash / bank. Keeping track of expenses is important part at time of doing accounting and bookkeeping for Spa or Salon business. Keeping record all expenses helps to pay minimum corporate tax.

4. Protective equipment Expenses

Post Covid taking care of customer is import. Many Salon stores started giving free masks , PPE Kit at time of giving services. These inventory cannot be used again and its an additional cost for salon or Spa business. Accounting for Protective equipment helps to understand additional expenses incurred .

5. Track Income

Tracking income in any business important to know growth. With Cloud accounting software’s you can do Bookkeeping for Spa Salon business. Tracking income means recording sales, receipts , expenses , taxes , payroll transactions etc. at end you get Net profit number. You can compare this number with past month and budgeted.