Published 24th July 2018
Bookkeeping can be tedious and boring, especially if you are unsure as to what it actually is that you’re meant to be doing, and if you are already paying an accountant it can seem like money that you are just throwing away by bringing a bookkeeper onboard. But you don’t have to pay big bucks to have a bookkeeper, as you can be that role and work alongside your accountant.
Let’s start with the absolute basics - what is a bookkeeper?
Bookkeepers keep track of the finances of a business and monitor the sales and purchases, as well as looking after payments and receipts. A bookkeeper will also organise, collate and record any day-to-day financial and keep all information recorded which can then be passed onto accountants who look at the bigger picture.
How can you do it yourself?
If your salon is still relatively small, it can be simple enough to do all your own bookkeeping, as long as you keep on top of it. Start by finding a way to record your cash flow. This could be through a specialist app, a spreadsheet (there are many templates online) or even just a specific notebook. Make sure you record the date and the balance of your business account, and from then on always remember to include the date! As for specialist apps, we recommend Xero or Quickbooks, as they are the easiest and most efficient apps on the market currently.
Keep a track of all of your receipts, and make copies - especially if you pay with cash. You can easily pick up a folder to store them all in, and keep your business bank statements with them. These can be annotated so you can keep track of what you are spending and where.
Don’t mix your business and your personal accounts separate, and make sure that things don’t cross over as this will make things very difficult when it comes to taxes.
How to find the right bookkeeper for you?
Sure, a quick google search will throw up a tonne of hits on bookkeepers, but as a salon owner, it is important to find one that understands your business. Don’t be afraid to speak to different people and find out what’s best for you. Many will offer a free consultation, so try and schedule in as many of these as possible, so you have options to choose from.
We recommend using Click Bookkeeping. Visit the PamperPad Market Place for an exclusive deal for PamperPad Members!
Top Tips:
Pick a System and Stick With It. Whether you are using software such as an app, a spreadsheet, or tracking things manually, find the one that suits you and don’t switch around.
Most systems offer a training service so you can gain a solid understanding of how best to utilise the system, and don’t pick anything overly complicated
Be Consistent. Set a time each day, or a day each week and sit down and make sure everything is up to date and correct. Don’t let things run away from you as then you will be left with a mess that will not be beneficial to anyone.
Keep Physical and Digital Copies. When it comes to receipts, take high-quality pictures on your phone that can be saved and referred back to, in case of damage or fading to the physical receipt. Have a quick google search and you will find a multitude of free apps that will keep them all safe for you. Also, make sure to take make a copy of the original receipt and keep this separate. It is ideal to have two folders that are kept in separate locations in case of water damage etc. Keeping your receipts safe is vital as they are in direct correlation to your accounts and are used for tax purposes. If you can’t find your receipts when it comes to filing your taxes, you will end up paying more than you need to!
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