When it comes to payroll, bills, superannuation, invoices, profit and loss statements, tax... does anyone really enjoy doing all the paperwork required to efficiently run a small business? If you answered that question with a big HELL NO, you'll be thrilled to learn that last year we discovered a group that actually LOVES doing bookkeeping calledACCOUNTING ANGELS - and together we've created some amazing packages for AHC members so you can ditch the books and focus on what you do best: HAIR!
We caught up with Accounting Angels head honcho Sarah Laruffa, a bookkeeper who specialises in the hair and beauty industry, to discover her tips on how to make bookkeeping work best for your business...
Firstly I want to say I am loving talking to more and more salons and hearing their passion, commitment to their clients, salons and their craft in general! Your industry truly is an amazing one and I can say that with true awareness as I sit writing this with toner in my hair on one of my twice a week appointments (because you know a CEO needs pretty hair)... Just like you are passionate about your clients' hair colour and cut and making sure they feel AMAZING when they walk out of the salon, I am just as passionate about helping you have the most profitable salon you can. More profit leads to more time, more beautiful hair, more confident clients, more salon growth, more freedom and time for you.
So with that being said, what am I hearing out there in the industry that is concerning me is:
Now please know this isn't your fault. You have done amazingly, but it's time to create change so you can have better. You deserve better, so let's chat about the TOP FOUR POINTS I think salons need help with to really smash 2019.
TIP #1: Did you know business is about more then sales? Of course you are going to say, 'Yes, it's about happy clients, it's about educated and happy staff, it's about paying the bills and wages, it's about juggling a million balls...' Well yes and no. Business is about PROFIT! For so many people, that is a word that has been forgotten and even made scary, so my first tip is to make sure you are ending the year with a profit, and a healthy one at that. Start how you plan to end the year today by making changes to bring in more profit.
TIP #2: Make bookkeeping your bestie. Yes okay it can be boring and not make all that much sense at times, but of all the things I discover when talking to people, it's that they simply are not doing their books regularly enough. Depending on your business size, you need to be doing your books at the very least monthly. Once you are getting past just you and maybe one other team member, it should be at least fortnightly, then as you are growing, heading towards weekly. So many people with salons are looking at their books just for tax purposes, but they should be your business' bible. How can you really know where things are at if your books are done just once a month after all the decisions have been made? Your bookkeeping and your BAS deadline are two separate things. We don't do bookkeeping just in time for BAS, we do bookkeeping to give you a road map for next month and the year ahead. BAS being done on time is a helpful by-product.
TIP #3: Get some help! Your time is most definitely better spent on not doing your books. Twice a week I get my hair washed and blowdried. Everyone laughs at me, but I sit and write content and my hairdresser makes my hair look amazing. I took my Operations Manager with me last week for a blow wave and she walked out saying, 'Oh that's why you get it done, I can never get it this smooth and shiny.' There are ways my hairdresser does my hair that she just does without thinking that get a result way beyond what I can. Similarly, we just look at your books and know what needs to be done, where things need to go and how to read the reports. You have hair instinct, we have numbers instinct! Let's look at this another way. How much is your standard service? $80? $120? Maybe even $220+? Would you rather spend a few hours playing in Xero once a month and still not have super shiny profit-finding books? Or would you prefer to look after one of your beautiful clients and let a bookkeeper make your books shine?
TIP #4: Okay, here is the final step and it's a big one, REPORTS! Once your books are done, so many people are lodging their BAS and then shutting Xero for another month. Please get some help to understand and look at your reports to see how they are starting to paint the picture of how your business can really shine and smash 2019 for both profit and freedom. Just like you know how to read the right mix of a colour combination, we as bookkeepers know how to look at a Profit & Loss and Balance Sheet and pull it all together to show you where your business is headed. From there, the fun of building a better business can begin.
From my many chats with hairdressing clients and also AHC Members, these are the top four tips that as a bookkeeper who is looking at clients' files all day every day, I really feel will help bring your business more profit and a much easier to manage cash flow. Feel free to reach out for some help if any of these points resonate with you.
Here's to your most profitable year yet and remember, there is always an Angel ready to help!
Like to know more about how Accounting Angels can support your business?
Please contact us for a scheduled appointment or phone Sarah Laruffa at Accounting Angels on 0401 118 292 to chat about your salon's financial needs. Bookkeeping need never be a headache again!