ASK THE EXPERT
AMY MARTIN DUARTE, CPA
BY KELLY HEITZ
Finance and tax decisions can be a whirlwind for
small business owners, especially small spa owners
and operators who have a lot to juggle. For this
month’s Ask the Expert, we spoke to spa finance
and tax expert Amy Martin Duarte, cPA about
the challenges small spas face and how you can
effectively juggle it all. Martin duarte has dedicated
a significant portion of her career to the devel-
opment of financial and accounting programs
designed specifically for the small business owner
in a variety of industries. As a cPA at calvin Martin
& company, she is responsible for the firm’s
corporate and partnership tax, planning and
compliance practice.
talking daily. There are only two
Pulse: What is one of the major
certainties
in life—death and
finance mistakes you see small
Hire and have good professionals
taxes—and many small business
business spas making and how
working with you—attorneys,
owners don’t prioritize the one
do you suggest they fix it?
bankers, accountants, and
item that is the key to making
Martin Duarte: Small business
successful business decisions,
spas tend to not have enough
insurance brokers. These
which is having the information
working capital. No business
individuals will be the key to
readily available to make educated
owner needs a line of credit in
your long-term success.
financial decisions. Make sure your
good times, only in tough times,
spa director is versed in financial
though banks tend not to lend
management and has P & L experience.
during tough times. An owner’s best option is to apply for a
How can an owner or director know how the spa is
line of credit when they don’t need it, banks see a strong
performing without having an up to date Profit and Loss
financial statement and will open a line of credit. Once you
Statement detailing all direct costs and variable expenses? How
have a line of credit, it can be renewed each year and then the
owner has the short term working capital when needed during
can they make decisions on rent negotiations, adding a new
the tough or slow times.
product or retail line? Can they afford to invest in that great new
machine to add a new high-dollar service? Can they get a loan
for that machine?
P: What can small business spa owners do to make the
All these questions can only be answered when there is a
finance side of their jobs easier?
“financial photo” available.
MD: Make sure they are up to date on their bookkeeping—I’m
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PULSE
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May 2018