Hire and have good professionals working with you— attorneys, bankers, accountants, and insurance brokers. These individuals will be the key to your long-term success.
P: Many spa employees rely on income from tips. What advice do you have for helping spa owners keep track of tip income for their employees? MD: Tax law is clear. All compensation to employees has to be reported. Tips are compensation. Although it’ s not popular, all tip income should be reported— even cash tips— and it’ s the employer’ s ultimate responsibility. The best way to capture tip income is to allow clients to add their tips to the total bill( which they prefer).
P: What should spa owners look for when choosing a spa accounting software? MD: I’ ve worked with so many clients who just look at the appointment setting aspect of a system versus the reporting side. Choose an appointment setting system that you like, but your primary decision should be based on its revenue reporting capabilities and whether it will work for your business. Some people need the high-end systems, however most small spas don’ t. All spas need a system that can account for gift cards correctly, have a daily close that balances cash, checks, credit cards, tips and gift cards, and reports that can run daily sales by service and technician. This information can be easily entered or imported into most accounting software systems.
May 2018 ■ PULSE 65