Why good bookkeeping is crucial
Bookkeeping is a necessary evil for many salon owners. Yet it is one of the most important pillars of a successful salon business. Without insight into your finances you cannot make good decisions about investments, pricing or growth.
Moreover, as an entrepreneur you are legally required to maintain an administration. The tax authorities can check your bookkeeping up to seven years back. A messy administration can lead to surcharges, fines and even criminal prosecution.
The good news: with the right tools and a bit of discipline, bookkeeping doesn’t need to be difficult or time-consuming. Start with a good structure and maintain it consistently.
Bookkeeping tips specifically for salons
The beauty industry has some specific points of attention when it comes to bookkeeping. Here are the most important tips for salon owners:
- Completely separate business and personal finances with a separate business account
- Record every transaction immediately — both cash and card payments
- Track your product stock as part of your bookkeeping
- Keep all receipts and invoices digitally (at least 7 years)
- Distinguish between the high and low VAT rate for products vs services
- Track staff costs separately per employee
- Create a monthly profit and loss overview
Tax benefits for salon owners
As a salon owner you can make use of various tax deductions that reduce your tax burden. It would be a shame not to take advantage of these, as they can save you thousands of euros per year.
The small-scale investment allowance is interesting if you invest in equipment or fit-out. Investments between €2,801 and €387,580 qualify. Think of new salon chairs, wash stations or a renovation.
Additionally, you may deduct costs for business use of your car, phone, training and trade literature. If you work from home, you can claim part of your housing costs as business expenses. Always discuss this with your accountant to do everything correctly.
Salon software as a bookkeeping tool
Although salon software does not replace full bookkeeping, it can take away a large part of the administrative burden. MyWest automatically records all transactions, generates revenue reports and makes it easy to export data to your accountant.
By linking your salon software to your accounting package or sending the reports monthly to your accountant, you keep your administration up to date without extra effort. Everything is already recorded the moment you check out an appointment.
Tip: schedule a fixed day each month for your administration. Export your revenue data from MyWest, check your bank statements and send everything to your accountant. This prevents work from piling up.