How are you keeping track of your expenses? I’ve seen Esthetician run their business and not keep track of their money and during tax time it’s a huge mess and/or they miss out on so many write-offs. Don’t let this be you, keep organized & save money where you can.
I use Quickbooks Online to keep track of my expenses. They have both a website and an app you can utilize. If you’re self employed Quickbooks Self Employed is great! You can track mileage if you travel for work, it connects to your bank account and automatically pulls new transactions, you can even use QB for payroll, payments and invoices. They’re pricing goes as low as $12.50 a month! I’ll also link my code below for 50% off.
Each bank account and credit card you use for business should be linked to your Quickbooks account. You should regularly go through your transactions and categorize each transaction as well. They have categories already pre-added and you can customize your own categories as well. Some categories you will probably use frequently are sales (the money you make from services), office expense, backbar expenses, taxes, licenses, utilities, meals & entertainment, etc.
Things you should be using your business bank accounts to purchase:
-Biz utilities (water, electricity, phone, internet)
-Back bar expenses (products for treatments and supplies for treatments)
-Cost of Goods Sold (Equipment for treatments such as wax pots, hydrofacial machine, high frequency machine, etc)
-Mileage + transportation fees (The amount of miles you drove to a client, any toll fees commuting to your client, valet/parking fees at the service location)
-Meals + entertainment (Lunch meetings with a business partner, coffee date with a photographer you may use, etc)
-Editing apps: If your editing apps for client photos cost you money, they can be written off.
-Online booking system fee (Vagaro, square, Mind&Body, etc)
-Advertising fees (Business cards, website fees, Yelp fees, Instagram/Facebook Ad fees)
Click here for a video of me using the Quickbooks app to categorize a couple transactions.
There are many items you can write off. Talk with your accountant and have them put together a strategy plan to make your money work for you. Salon/Spa business have a lot of overhead. All the spending you do to keep the biz running needs to be written off. If you’re still building and don’t have the funds to have an accountant yet just make sure to keep your transactions organized and save your receipts.
Save 50% on your Quickbooks fee here!
Let me know what other Quickbooks or finance questions you have!