Top Things To Put On Your Year-End Salon Financial Checklist
Top Things To Put On Your Year-End Salon Financial Checklist
Often overlooked or completed in a rush at the last minute, reviewing your salon or spa’s goals, business reports, and branding strategy is the best way to set yourself up for growth in the new year. Not to mention, the nature of your business is constantly evolving, and your end-of-year checklist can keep you on the front of the changes you need to be aware of across your industry.
A great deal of thought and time goes into planning for the year ahead, and most times, the best way to move forward is to start by reviewing your past year. Let’s take a look at the essentials for your year-end salon financial checklist so you can ring in the new year prepared to place your best foot forward!
Inventory
The last thing you want is to have a bunch of unused inventory or stock taking up space and money in your storage room. Complete a full inventory profile to determine what products you are using the most of, what’s selling, and what you might not need to order for a while. This will help you trim the fat in the upcoming months and better prepare for orders in the future.
Review Financial Reports
Make sure all of your outstanding invoices and payroll are up to date. Start by reviewing your financial reports. Make sure you understand every time and every item, this includes your balance sheets, income statements, accounts receivable, and statements of cash flow. Realistically, you should be reviewing these reports monthly, but it’s extremely important to review them before the new year to understand the financial snapshot of your business.
Accounting
If you don’t already have regular meetings with your accountant, it’s crucial you meet to discuss your business finances before the end of the year. Your accountant will confirm you’ve paid your taxes, and are meeting all financial requirements. When you meet, be sure to discuss suggestions or ways to help you save on your business taxes moving forward.
Lease Agreement
How is your lease looking? Is it time to renegotiate ? Even if you aren’t required to make any changes, be sure to get this information to your accountant and may be even meet up with your landlord to discuss a more business beneficial scheme moving forward.
Set Goals
Be sure to set aside some time to really think about what you want to achieve for your business in the coming year. Once you determine your goals, break your larger goals into attainable monthly goals. This will help keep you on track and helps to take into consideration any applicable seasonal fluctuations.
Set a Budget
Now that you’ve taken a closer look at your salon or spa finances and have set goals for the upcoming new year, take time to set a budget. Use the previous year’s finances, income, expenses, and cash on hand to create a quarterly and yearly budget that stays below your expected revenue. Be sure to take into consideration your staffing needs. For example, do you need more staff or are you expecting to downsize if things have been slow?
Royal Metis Consultancy
Operating a spa or salon is an exciting time in your life and career. However, it can feel overwhelming managing all of the moving parts. At RMC (Royal Metis Consultancy), we help professionals and entrepreneurs to develop their businesses for future growth. From concept creation, market analysis, and design to branding, marketing, and recruitment, to planning for the year ahead, we leverage our experience to help you successfully launch your business and most importantly; align your current business for growth.
Contact a member of our team to learn how we can help you on your path to opening your medi-spa.