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