Posted on July 16, 2021
What Is Salon Business Consulting?
Salon Business Consulting is a growing industry. In 2021, salon owners and salon managers spent nearly six billion dollars in spa, salon, beauty, and medical equipment sales and marketing, according to one study. That was an enormous leap from previous years when salon spending only accounted for two percent of overall spa sales. In a tough economy, these figures are important because they demonstrate how client revenues are strong enough to support business expansion. Many owners don’t even consider salon business consulting until they’re facing financial difficulties.
The most important component to successful salon business consulting is excellent bookkeeping. Established professionals recognize that small businesses need comprehensive, reliable bookkeeping to be profitable. Professional accounting includes every expense and sale, including invoicing, payments, receipts, disbursements, purchases, income taxes, and more. A well-run salon employs a full-time salonsalesperson or similar employee who is responsible for bookkeeping, including invoicing, payments, disbursements and tax filing.
Poor bookkeeping results in poor financial management and a lack of confidence among clients and retailers. Business owners may think that their stores are stable on paper but can they be sure they’re running at a profit? How do you know your vendor’s prices or labor rates are fair? How do you manage payroll and finances when labor and operating costs keep pace with increases in sales? Most important, do you have the systems in place to assure that your salon consulting firm is providing the services you need, when you need them?
Small business owners have many questions to ask themselves about their small business’s performance, but the first question should be “What’s your bookkeeping?” Today, more than ever, salon owners and managers are seeking expert accounting services to help them improve their bottom line. Before deciding to outsource accounting services, though, salon owners should investigate their current situation to make sure they aren’t making unnecessary changes to their businesses without carefully considering their new provider’s proposals. A good service will first ask about your bookkeeping practices and review your current records. Then they’ll make recommendations for changes that may be able to increase your profits and minimize your expenditures.
Some common questions salon owners have are how often their companies need bookkeeping services, how much they spend on regular bookkeepers and what kind of benefits they’d receive from such services. In fact, any professional bookkeeping services will find the most value in your small business’s information, as they will be viewing your records to identify areas for improvement and to suggest ways to improve your overall financial health. Some professional bookkeeping services offer audits of your balances and accounts payable and receivables on an ongoing basis, which could significantly reduce your need for additional bookkeepers. Some professionals charge by the month or quarter, and others offer monthly or yearly subscriptions. Many provide customized plans so you can tailor them to your particular business’s needs.
Small salon bookkeepers serving this field charge varies according to the size of your company and the number of employees it has. Most county bookkeepers serving this area charge around ten or eleven hundred dollars per month, with some going much higher. But, there are some salons that may not be required to pay full-time wages to a full-time employee, so they may save money by contracting with a professional bookkeeper. The cost of hiring a professional bookkeeper is typically only a one-time expense, since the bookkeeper’s services will usually be rendered throughout your businesses entire operations. This means that you won’t have to pay for his or her services more than once.
There are also some advantages for salon owners who decide to outsource their bookkeeping. Some owners choose to do this because they don’t want to have to invest their time in maintaining their own books. Others feel that they can get more done through an external resource. Still others think that hiring a professional is better for the overall success of their salon business.
Regardless of whether you decide to hire a service or not, it is crucial that you carefully consider the pros and cons of outsourcing your salon business’s bookkeeping. Many small business owners make the mistake of not giving it careful thought before making the decision. If you aren’t planning to grow your salon into a larger business, you probably don’t have the financial means to invest in maintaining your own bookkeeping services. If your salon is experiencing growth, however, you may find that the revenue generated allows you to justify investing in a bookkeeping service. Regardless of the decision you make, always weigh the cost of hiring a bookkeeper against the value you will receive from their services.