PROFIT AND BEAUTY: A Show For Salon Professionals

Join The Club: https://financesforsalonprofessionals.com/ Hi everyone. I am really excited to announce that my membership site for independent contractors and salon owners is finally launching in two days. I’ve been working on the site for the past six months. As I was building the site, I was trying to add to the membership program the types of services that I thought would be most beneficial to the members. The services that I eventually settled on were those that my current clients and other beauty industry professionals seem to struggle with the most. In this video, I’m going to give you an inside peek of what is currently available within the program. So here we go. Let’s see what’s behind the curtain.

Click The Link To View The Video https://youtu.be/Fnx5ye5cS4U Join My Wait List https://accountants4hairstylists.com/something-new-is-coming-soon Hello again and welcome to part three of Business financial literacy for the independent stylists. In Part one I discussed the importance of picking a legal business structure for your business, in part two, I discussed why it's important for an independent stylist to set up an accounting system.  In part three, I discuss cash flow management for the independent stylist.  CASH is the lifeblood of every business.  Without cash, your business will eventually fold even if the business shows a profit each month.  One advantage that the beauty industry professional has over other businesses is that we are a cash business and as such, salon owners and independent stylists, generally speaking, do not have to worry about there income statement (profit & loss statement) showing a profit based on Accounts Receivable.  This means that most if not all the sales on your income statement is cash that you have already received.     So for independent stylists and other cash businesses, the purpose of managing your cash flow is to always know how much cash you have in reserve before you have to start worrying.   I hope you enjoy this 16-minute video that hits on some of the high notes of cash flow management.

Click Here To Join My Wait List Hello again and welcome to part two of Business financial literacy for the independent stylists. In Part one I discussed the importance of picking a legal business structure for your business, which included the different options available to independent stylists and the importance of understanding the structure you choose. Today I’ll be talking about setting up an accounting system for your business and why it’s important When I speak to some of my independent clients about the need for them to set up and maintain a bookkeeping/accounting system some of them simply say that they don’t see the need.  And that’s because they work directly out of their bank accounts, which can prove to be quite risky if you ever start to experience cash flow problems. The first thing is your business needs to generate financial records so that you can have access to the three most important reports a business needs to make decisions. 

Hello everyone and welcome to my six-part series all about business financial literacy for the independent stylists Although it’s important for all business owners to be financially literate, for this series, I’ve decided to focus on the independent stylist because I want to emphasize the importance of operating your business as a legitimate business regardless of your size. Whether you are as large as coca-cola or Nike or whether you are a one-man shop, in order to successfully sustain your business, you must do the same things that the larger businesses do to succeed all be it on a smaller scale. 

Over the last few months, several independent stylists and salon owners have asked me what the difference is between an independent stylist, a booth renter, and an independent contractor. I explain the differences in this mini cast! Click the link below to join my the wait-list https://accountants4hairstylists.com/something-new-is-coming-soon

Now that businesses are starting to receive their PPP loans, it's time to understand what is required in order for your loan to be forgiven. You want to try to avoid any unwelcome surprises when you apply for loan forgiveness.

COVID19 has brought to the fore-front the theme of the podcast that I have been hosting for years, and that is the importance of treating your business “like a business” and not like a hobby, regardless of whether you are a full-service salon or a booth renter behind the chair. I’ve always said, If the government treats you like a business, you are a business, and therefore, you should treat yourself like a business. One of the most important decisions you make when starting your business is the legal structure you choose. When I say legal structure, I am talking about choosing between a Sole Proprietorship, S-Corp, Partnership, C-Corp and also understanding what it means to be an LLC especially a single-member LLC

On Tuesday, April 14, the Small Business Administration (SBA) issued several important clarifications to its rules regarding the Paycheck Protection Program (PPP) in respect to the following: Calculation of maximum loan amount for self-employed individualsUse of PPP loan proceeds by self-employed individuals.Documentation for loan forgiveness by self-employed individuals. Website: https://accountants4hairstylists.com/ Instagram: @desarieanderson Facebook: https://www.facebook.com/profitandbeauty/

I've been receiving several questions from salon owners asking how they can go about writing off the rent they are not receiving from their booth renters due to COVID19. Rather than answer each person individually, I decided to record a short video explaining how it works. SHOW MORE

What is the CARES (Coronavirus Aid Relief and Economic Security) Act? The CARES Act is the largest economic stimulus package in the history of the United States. It includes approximately two trillion dollars to help people and businesses impacted by COVID-19. Many beauty professionals are asking “What does this mean for me?” How does the CARES Act impact the beauty industry? The act includes several provisions that impact citizens of the united states, businesses, and business owners including beauty industry professionals.  Beauty industry professionals consist of salon owners, booth renters, commission stylists (W2 employees), and independent contractors most of which are self-employed and/or independent contractors. On this podcast, I am only going to focus on four of the provisions that my clients ask about the most The rebate or stimulus checksThe Pandemic Unemployment InsuranceThe payroll or paycheck protection planAnd the Economic Injury Disaster Loans

As a former hairstylist and salon owner, I had to think of creative ways to increase my bottom line. Now, as a consultant to hair professionals, I sometimes have to suggest different ideas on how to increase sales so they can become more profitable. In this podcast, I talk about how I used retail to increase my salon profits.

With all the misconceptions out there regarding 1099 it is time to set the record straight. This podcast was derived from a Facebook live I did in The Sovereign Stylist FB group. I answered questions that beauty industry professionals had regarding receiving and giving 1099's to a business. Enjoy! Here’s the link to The Sovereign Stylist Facebook Group: https://www.facebook.com/groups/booth... Here is the link to my website https://accountants4hairstylists.com/

This weeks podcast talks about some of the important 2020 tax due dates. Feel free to reach out to me via email if you have any basic questions. desarie@andersonaccounting3.com https://accountants4hairstylists.com/

QuickBooks Online Accounting Software For Beauty Professionals This Podcast is based on a YouTube video I created where I spoke about the general  options beauty industry professionals have when picking QuickBooks online for their bookkeeping needs. The information provided in the video is general enough to help get you started with your decision making. Click this link to purchase any version of QuickBooks Online and QuickBooks Self-employed for 50% of for 6 months. https://quickbooks.grsm.io/DesarieAnderson Here is the link to my website if you would like to see the types of services, I offer https://www.accountants4hairstylists.com/ Here is a link to my online courses which includes a video on how to upload your salons chart of accounts into QuickBooks online https://profitandbeauty.school.invanto.com/

This live webinar discussed how to calculate your own quarterly estimated tax payments. Estimated taxes are due each quarter and all self-employed individuals are required to make quarterly payments unless you fall outside of the requirement. I discussed who is required to make quarterly payments and those that are not required to make payments Click the link to access the spreadsheet I created that you can use to calculate your estimated taxes while at the same time recording your income and expenses. CLICK HERE TO ACCESS CLASS AND SPREADSHEET

Today's podcast was a live recording. Tax day is here and I'm not ready to file my taxes nor do I know how much money to send the IRS with my extension. Let's talk about it. AND Last-Minute Tax Deduction Check List For Hair Stylists & Salon Owners

Today I’ll be taking about three painful IRS penalties and how to avoid them. They are: a. The underpayment penalty b. The failure to pay penalties c. The failure to file penalty If you are interested in attending my webinar on Monday, April 8th click the link to register. How To Calculate Your Quarterly Estimated Taxes On Your Own.

How is self-employment tax calculated? - Most W2 employees don’t realize that their employer matches the 7.65% withheld from their paychecks. As I mentioned earlier, we are all required to pay 15.3% of our gross income into Medicare and social security. W2 employees only pay half of the 15.3% while their employer pays the other half, for a grand total of 15.3%. For those of us that are self-employed, we do not have an employer to pay half of our Medicare and social security payments, therefore, we are required to pay the entire 15.3% ourselves. Find out how self-employment tax is calculated and everything else you need to know.

Here are 4 common questions I get asked at tax time: I am a business owner, how should I pay myself? As a business owner, do I need to file both a business and a personal tax return? I purchase products and supplies from vendors; do I need to provide them with a 1099 at the end of the year? Who else should I be giving a 1099 to at year end? What if I am not able to get all of my documents together before April 15th, can I file an extension and how does the extension process work?

In this contest, I will be giving away my Do-it-Yourself bookkeeping package. I will set up your entire bookkeeping system using QuickBooks Self-employed. Once your system is set up, I will provide you with a two-day training to show you how to use QuickBooks Self-employed to do your own bookkeeping. Three months after your training, I will do a free check-in. During the check in, I will perform a deep dive into your books to make sure you are on the right track and that all your transactions have been properly recorded. I will also answer any questions you may have. You will also receive free access to my on demand ecourse's "Tax Savings For The Beauty Industry" coming soon http://bit.ly/ClickHereForInformation and "QuickBooks Self-employed For The Booth Renter & Salon Suite Renter." http://bit.ly/QBSERenters BEAUTY CONTEST

Profit and Beauty Podcast usually discusses business matters concerning the beauty industry.   But for our last show of the year, we are taking a left turn and discussing a topic that has absolutely nothing to do with business.   Join me and my guest Sileta Hodge as we discuss her brand new book entitled, "Get Over Him In An Hour."  The book was inspired by a personal relationship she experienced in her past life.   Get Over Him in An Hour is the therapy every woman needs to jump-start their healing process. Each chapter speaks to a woman who is battling with a unique suffering, and Hodge uses her spiritual eyes to point out the problem and then to offer a solution. She doesn’t promise a step by step guide. Instead, Hodge takes on a pragmatic, no-nonsense approach that forces the reader to consider the risks they are taking on when they settle for abusive, cheating, and non-committal men. While she talks about the risk-factors associated with some of these poor choices, Hodge puts fire behind her words when she forces the women to consider the element of time and to look to the bigger picture yet—which is, you were born for such a time as this! This book is a clarion call for all women to rise from beneath the nets of unfruitful relationships and to begin their march towards their higher-selves. Download a free copy of chapter one here. http://bit.ly/GetOverHimInAnHour

WHAT IS BUSINESS FINANCIAL LITERACY Every business decision you make in and for your business has a financial consequence. On this podcast, I will cover the Six Components of Business Financial Literacy. Please keep in mind that there is no science to these six components. I personally came up with all six based on my experience working with independent contractors, sole proprietors, and micro business owners. These are the areas they seem to struggle with the most. Picking the right business structure and why it’s important Setting up an accounting system that works for you and your business Cash flow management and why cash flow can propel or sink a business Budgets, projections, forecasts and the differences between them Business credit vs. personal credit and do you need both to borrow funds for your business Tax planning and tax compliance  

What is the difference between a sole proprietorship and an LLC? I answer that question on this weeks episode. There are several similarities between the two as well as a few major differences.

If you have ever wondered what you need to do or what you need to know in order to start your own hair product or cosmetic line, you should definitely listen to this week's episode where I speak with Margaret Haven of Haven Research Center. We discuss everything from how to get started, product ingredients, and the importance of packaging and marketing your product. It’s a long discussion, but there are so many important and informative nuggets you will learn.

On today’s show, I am going to discuss the new law that was handed down by the California supreme court which threatens to abolish the booth rental model and how the law may also affect salons that host traveling stylists. I think it’s important that salon owners in every state pay close attention to how this law evolves over time because if whatever the state of California is trying to achieve becomes successful according to their measurements, whatever those measurements are, other states will eventually attempt to adopt the same law. The new law has essentially stopped hair salons from being able to hire independent contractors (booth renters), and instead, salons are now required to classify their workers as employees based on the "ABC Test." This is a HUGE change and will change how hair salons and other beauty professionals operate and mange their businesses moving forward.

On today's show, I will be discussing three reasons beauty industry professionals don't "charge their worth" and how to overcome this barrier. The three reasons I will be focusing on are: Lack of confidence Making assumptions about peoples financial situation Trying to keep up with what everyone else is charging

I will be discussing: Legal business structures salons can choose from Starting a salon from scratch vs buying an established salon Raising Startup or operating capital for your salon Different types of accounting systems for your business And much much more.... Remember, this show is actually a recording of the webinar. I hope you enjoy it and don't forget to download my app Proft and Beauty from the Google or Apple store.

On today’s show, I am going share with you some of the questions that have been asked by salon owners and hair stylists on the QuickBooks pro advisor platform. The reason I have decided to do a show like this is that I know that when someone asks a question, there are probably tons more people that have the exact same question. So today I am going answer 5 questions stylist and salon owners have asked regarding setting up and recording certain types of transactions in QuickBooks online. Setting Up Booth Rental Income Accounts http://bit.ly/SettingUpIncomeAccounts How To Record Discounted Services http://bit.ly/RecordDiscountedServices

Today’s topic is definitely a reflection of today’s mobile and sharing economy. Gone are the days where we told that there is only one path to success. With the creation of companies like Uber, Lyft, Airbnb, and several beauty business apps, beauty professionals now have options and can pick and choose how and when they want to work. Even though I run an accounting practice, I still do hair at my leisure whenever I want by working with one of the beauty apps. My guest today is Dr. Tye Caldwell. Guest Biography – Tye is the Cofounder & CEO of ShearShare, the first on-demand salon and barbershop space rental app. Dr. Caldwell’s mission is to help beauty and barbering professionals around the world maximize their earnings potential. The ShearShare app enables more than 1,000,000 licensed professionals to work on their terms, while salon and barbershop owners make money on unused space. He is the author of the #1 best-selling book, called Mentored by Failure: A 5-Point Guide to Long-Term Success in the Beauty & Style Industry. Enjoy the show and don't forget to go to iTunes to like and leave a comment. Let me know if there are certain topics you would like me to discuss on a future show. Click the links below to download the ShearShare app from Apple or Google. Don't forget to tell your fellow stylists and barbers to download the app. Apple: http://bit.ly/ShearShareAppiTunes Google: http://bit.ly/ShearShareAppAndroid

I speak with Julia Carlson about retirement planning, planning for financial freedom, and steps to take to get out of debt. Today’s topic is one that I am very passionate about mainly because when I was a hairstylist, I worked with people who were 65, 70 years old that couldn’t retire because, in all the years of doing hair, they never planned for the future or for retirements. Because this is such an important topic, I am going to be doing a three-part series on the subject of retirement and planning for your financial future. My guest on today show is Julia Carlson. Julia is the founder and CEO of Financial Freedom Wealth Management Group LLC, she works to help individuals by inspiring them to follow a plan that strives to create growth while pursuing financial freedom. In 2017 Julia wrote Fit Money, 7 Steps to get your financial life in shape. She is also a health enthusiast and mom to 3 amazing kids! Here is a link to a free copy of Julias Book Fit Money: http://bit.ly/fitmoney7

My guest Joanne Kaminski talks about how hair salons and hair stylists can use Pinterest to build their business. She discusses the benefits of Pinterest, and why all hair stylists and hair salon owners should make it a point to have a presence on Pinterest. She also explains how hairstylists can use their work to inspire potential clients to book an appointment, or at the very least inquire about their services?

Hi everyone and thanks again for joining me on today’s show. Today I am going to be talking about a topic that scares the bejesus out of most red-blooded Americans, and that’s getting audited by the IRS or the state for that matter. People don’t realize that the state can be even more brutal than the IRS sometimes. Lately, I have noticed a recent uptick in the number of salons and hair stylists that are being audited by the IRS. Overall, it’s not surprising to me because the IRS has been known to audit cash-intensive businesses. Cash-intensive businesses are businesses that do a lot of cash transactions. Hair salons, restaurants, convenience stores and just about any business that collects a large sum of cash during the course of business. When your client pays you using cash, there is no record of the money received especially if you don’t deposit the money into some sort of an account. So the IRS gets really creative when they are auditing business that they believe are not reporting all of their income. They use a lot of backdoor methods to try and figure out how much money your or your business actually made. Now outside of methods like looking at your salon's purchases for any given year to try and figure out how much money the salon brought in, they also have the authority to perform something called a lifestyle audit. Lifestyle audits are extremely invasive, and basically, the IRS is trying to find out if your lifestyle matches up to the amount of money you claimed you made in a given year. This means digging into all of your personal effects and trying to come up a price tag on your lifestyle. Lifestyle audits are no fun at all. Cash-based businesses, like salons, are often targeted for random audits meaning that the audit is being conducted through absolutely no fault of your own, but sometimes your tax return may flag you or your business. So today, I’m going to talk about ten red flags that can trigger an IRS audit for your hair salon.

Hi everyone and welcome back to profit and beauty. I know when I start talking numbers and anything to do with business accounting or taxes you guys starting yawning and try to find any and all reasons to leave the room. But it is so very important that you know and understand the numbers behind your business, otherwise, you are setting yourself up for failure or you will be stuck in a businesses that feels like a job, which means you maintain all the responsibilities of owning a business (paying rent, paying utilities, keeping your salon stocked) but you are not experiencing a return on your investment because you are not making any money outside of what you make behind the chair. So today I am going to talk three specific metrics all salon owners need to monitor in order to understand what is going on in their business, and how to fix an issue before it becomes a major problem. These metrics are: Client Retention Rate; Dollar Retention Rate; Stylist Productivity & Retail.

On today’s show, I am going to answer a question I received from a hairstylist out of Atlanta Georgia. The question is related to the age-old question booth rent vs commission. Here is what she wants to know: I currently work as a booth renter, but I am thinking about going to work at a commission salon. My concern is that I don’t know if I feel comfortable giving up half of my money to the shop owner. I was wondering if it makes financial sense to make the move? I will go over a side-by-side net income comparison between a booth renter and a commission stylist and see what the numbers tell us. I will also discuss the pros and cons of both choices.

Whether your salon is structured as a booth rental salon or a commission salon, if run properly, you will make money with either structure. But don't let the IRS or their rules interfere with your financial goals. Whenever I am consulting with a new client we always discuss the type of business structure they would like to implement. They always respond with "which is better commission or booth rent?" In my humble opinion, I don’t think one is better than the other, instead, one should choose a business model based on their overall goals and intended outcome. I do believe that before you pick a particular model, you should do your research so that you pick the one that aligns closets to your overall goals. Most salon owner's do not take the time to think about tax consequence of either model. That's where I come in. When I talk about the tax consequence of your business model I am referring to the things you need to know regarding IRS compliance, and what you need to do to make sure there is a clear separation between you the salon owner and the booth renter so you can protect yourself if god forbid, you are ever audited by the IRS or state.

On today's show, I am going to talk about two area that I receive a lot of questions about. What type of legal entity should I choose for my business and should I open up a separate bank account for my business Let’s start with the first question regarding legal entities. Let me first say that there is no right or wrong choice when it comes to picking a legal structure for your business. It all depends on your long and short-term goals, as well as how you want to run your business. It is okay to start out with one particular entity type and switch later on. As for whether you should maintain a separate bank account for your business, the answer is yes. Some businesses legally have to separate business and personal funds. If your company is a separate legal entity, business funds must be in a separate bank account. Even if you are not required to use a business bank account, you may want to consider maintaining a separate business account because it can get quite confusing using one bank account for both personal and business.