Accounting for the Beauty Industry
Unlock the potential of your beauty business with expert bookkeeping tailored to your needs.
As a sole trader in the beauty industry, it’s essential to manage your accounting effectively to track your income, expenses, and comply with tax regulations.
Here are some key steps and considerations for accounting as a sole trader in the beauty industry:
- Business Bank Account: Open a separate business bank account to keep your personal and business finances separate. This makes accounting and tax reporting much easier.
- Record Income: Keep a detailed record of all your sources of income, such as revenue from beauty services, product sales, or any other income related to your business.
- Expense Tracking: Maintain a record of all your business expenses, including costs for products, equipment, rent for your workspace, marketing and advertising, and any other costs associated with your beauty services.
- Receipts and Invoices: Keep receipts and invoices for all your business transactions. This documentation is crucial for tax purposes and may be required for deductions.
- Bookkeeping Software: Consider using accounting software like QuickBooks, Xero, or FreshBooks to help manage your finances, track income and expenses, and generate financial reports.
- Tax Responsibilities: Be aware of your tax obligations as a sole trader. You may need to pay income tax on your business profits, as well as National Insurance contributions. It’s advisable to consult with a tax professional or accountant to ensure you meet your tax requirements.
- Self-Assessment: In the UK, sole traders typically complete a Self-Assessment tax return. This is where you report your income and expenses and calculate the tax you owe. The deadline for this is usually January 31st for the previous tax year.
- VAT Registration: Depending on your income, you may need to register for Value Added Tax (VAT). If your turnover exceeds the VAT threshold, you must charge VAT on your services and products.
- Financial Reports: Regularly review your financial reports, such as profit and loss statements and cash flow statements, to understand the financial health of your business.
- Seek Professional Advice: Consider consulting with an accountant or tax advisor who specializes in the beauty industry to ensure you’re optimizing your financial management and tax strategies.
- Business Insurance: Consider getting liability insurance to protect your business from potential claims or accidents.
- Record Keeping: Maintain a well-organized filing system for your financial documents, making it easier to access information when needed.
Effective accounting is crucial for the success and compliance of your beauty business. It’s advisable to stay up to date with tax regulations and consult with a financial professional to ensure that you’re managing your finances correctly.
Why Choose Swan Books?
Swan Books brings over 16 years of trusted accounting experience in Essex. We don’t just see numbers; we see local businesses thriving and communities growing. We have many accounting clients in the beauty and health industry, and they often commend our friendly, professional, and approachable style. Beyond mere testimonials, our track record of success and our commitment to ensuring businesses flourish stands as our proud testament. Discover the Swan Books difference today.
There’s a reason we have nothing but 5 star reviews on Google.
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Lily Burford3 July 2024Amazing service. Really efficient, professional and friendly. I would highly recommend for anyone needing guidance with business finance.Trustindex verifies that the original source of the review is Google.Cara Johnston28 June 2024Lovely and personal and very understanding.Trustindex verifies that the original source of the review is Google.James Marvell27 June 2024Very helpful. ThanksTrustindex verifies that the original source of the review is Google.Lauren Millington25 June 2024I’ve been working with stacey for a few years now and recommend her to anyone who is looking for an accountant, she is so down to earth and answers absolutely any questions I have no matter how big or small!Trustindex verifies that the original source of the review is Google.Refine Design24 June 2024Stacey is a wonderful lady! She makes the mind boggling process of accounts an absolute breeze! She's professional and speedy at what she does! I'm so glad I found her!Trustindex verifies that the original source of the review is Google.Official SleepWelness28 May 2024So accepting, easy going, clear, transparent & easy to talk to. She takes the weight off your shouldersTrustindex verifies that the original source of the review is Google.Zoe Vango24 May 2024Stacey is the best in the business, always gives the best advice and is 100% there when you need her! XxTrustindex verifies that the original source of the review is Google.Susan Webb24 May 2024Wonderful service. Recommended to my friends.Trustindex verifies that the original source of the review is Google.Helen Clarke24 May 2024Stacey has been amazing to work with. She has been able to explain everything in a language I understand and is calm, consistent and always communicative. Stacey came highly recommended and I feel in the safest hands. Thank you Stacey and team Swan Brooks! 🙏Trustindex verifies that the original source of the review is Google.Jackie Kelly24 May 2024Excellent. Very knowledgeable and confident. Stacey has sorted our family business out with minimum fuss. A pleasure to deal with and highly recommended.
recommendsTrustindex verifies that the original source of the review is Facebook.Refine Design24 June 2024Stacey is a wonderful lady! She makes the mind boggling process of accounts an absolute breeze! She's professional and speedy at what she does! I'm so glad I found her!recommendsTrustindex verifies that the original source of the review is Facebook.Vicki Daws28 February 2024Stacey has been amazing with me, as a first time business owner without a clue how to do my accounts, she's been so patient and understanding helping steer me correctly, relieving so much stress and pressure! She genuinely cares and has belief in my business which helps me have belief too! I highly recommend.recommendsTrustindex verifies that the original source of the review is Facebook.Stevie-May Cole27 November 2023Stacey has been great from start to finish. She has explained everything helping me understand and put my mind at ease throughout the process. I highly recommend Swan Books for anyone looking for an efficient local accountant 🌟🌟🌟🌟🌟recommendsTrustindex verifies that the original source of the review is Facebook.Georgia Billie Anthony24 October 2023Amazing at putting your mind at ease and extremely patient ! Could not recommend stacey enough 5 ⭐️ all round xrecommendsTrustindex verifies that the original source of the review is Facebook.Shiralee Swan Photography LSWPP, LNPS2 August 2023I took the big step in 2020 to start my own business. Stacey handles the numbers side of things for me, she very friendly and super helpful, and she never makes me feel like I have a silly little question. I, 100% recommend StaceyrecommendsTrustindex verifies that the original source of the review is Facebook.Olivia Charles20 July 2023Stacey has been fantastic with my accounts. She went through everything and was very helpful with any questions I had. Brilliantly responsive and got everything together in no time at all. I would highly recommend her!recommendsTrustindex verifies that the original source of the review is Facebook.Stuart Wilson2 February 2023Stacey has been fantastic, she does all my bookkeeping and submits all my tax returns. She has given me advise and is always there to answer my questions and provide support. Stacey has given me one less thing to worry about so I can focus on with running my business. 100% recommend Stacey!recommendsTrustindex verifies that the original source of the review is Facebook.Ross Cook9 January 2023Friendly and extremely helpful. We had many questions about sole trading and Stacey was more than happy to help, even at 8pm in the evening!recommendsTrustindex verifies that the original source of the review is Facebook.Sharon Groves1 December 2022Stacey has been amazing in getting my books in order and submitting my tax returns. She has given invaluable advise and is always on hand to answer any questions and provide support. Stacey has been a god send and given me one less thing to worry about so I can get on with running my business. Thoroughly recommend Stacey!recommendsTrustindex verifies that the original source of the review is Facebook.Natalie Wooden24 November 2022Stacey was so friendly and eager to help me from the start. Nothing was a problem. We did everything step by step and everything was taken care of for me. I’m so glad I found you Stacey! Thank you for your help and professionalism.
Our Process
Initial Consultation
Understand your business, your challenges, and your aspirations.
Onboarding
Seamless integration with your existing systems, training provided if necessary.
Tailored Solutions
We propose a bookkeeping solution adapted to your unique needs.
Regular Check-ins
Periodic reviews to ensure your financials are on track and to address any concerns.
Year-End Finalisation
Ensure everything is aligned, compliant, and ready for HMRC submissions.
Beauty Professions
Swan Books offers accounting services to all areas of the beauty industry. We understand the unique financial needs of various beauty professions and tailor our services accordingly.
Makeup Artists
Aesthetics
Professionals in aesthetics, such as those providing skincare treatments and non-surgical enhancements, have specific financial needs. Expenses can include specialised equipment, skincare products, and training for advanced techniques. Additionally, maintaining proper insurance and compliance with health regulations is vital. Swan Books offers tailored accounting services to help manage these expenses and navigate the complexities of VAT and tax regulations specific to the aesthetics industry.
Lash Technicians
Lash technicians require precise management of expenses related to lash products, tools, and training courses for new techniques. Since many lash technicians operate on a freelance basis or run small salons, keeping track of client payments, managing bookings, and maintaining supplies inventory is essential. Swan Books can assist in setting up efficient bookkeeping systems, ensuring all expenses are tracked, and helping you remain compliant with tax obligations.
Nail Salons
Nail salons have a range of specific expenses, from nail polishes and tools to salon furniture and hygiene supplies. Managing these costs, along with rent for the salon space and employee wages, requires detailed financial oversight. Swan Books provides comprehensive accounting services to help nail salon owners manage their finances, optimise their tax positions, and ensure compliance with all relevant regulations. Our services also include financial reporting and analysis to help you make informed business decisions.
What Can Beauticians Expense?
Allowable expenses for a sole trader in the beauty industry are business-related costs that can be deducted from your business income when calculating your taxable profit. Here are some common allowable expenses in the beauty industry:
- Beauty Products and Supplies: The cost of beauty products, cosmetics, skincare items, and other supplies used in your services is usually fully deductible.
- Equipment: Expenses related to beauty equipment, such as chairs, mirrors, sterilizers, and beauty beds, can be claimed.
- Rent or Workspace Costs: If you rent a salon space or workspace, those rental costs are allowable expenses.
- Utilities: Costs for utilities, such as water, electricity, and heating, related to your workspace are deductible.
- Insurance: Premiums for business insurance, including public liability insurance, are typically allowable expenses.
- Advertising and Marketing: Costs associated with advertising your beauty services, creating a website, and running marketing campaigns can be deducted.
- Training and Professional Development: Expenses for courses, workshops, and certifications to enhance your beauty skills are often allowable.
- Travel: Travel costs for business-related trips, such as visiting clients or attending industry events, can be claimed. This includes mileage, public transportation, and accommodation.
- Professional Fees: Fees paid to professional organizations, associations, or licensing bodies are deductible.
- Office Supplies: Expenses for office supplies like stationery, paper, and printer ink used for your business are allowable.
- Subcontractor Payments: If you hire other professionals on a freelance or subcontract basis, their payments are allowable expenses.
- Telephone and Internet: Costs for business-related phone and internet services can be claimed, but only the portion used for your business.
- Uniforms and Workwear: The cost of uniforms, workwear, and protective clothing used in your beauty services is generally deductible.
- Cleaning and Maintenance: Expenses for cleaning and maintaining your workspace are allowable.
- Accounting and Bookkeeping Fees: Fees paid to a professional accountant or bookkeeper to help manage your financial records are deductible.
It’s essential to keep detailed records and receipts for all these expenses, as well as any others specific to your business. When it’s time to complete your Self-Assessment tax return, you can deduct these allowable expenses from your total income to determine your taxable profit.
As qualified beautician accountants, Swan Books can assist you with all of the above. Be sure to get in touch to find out how we can take the hassle out of accounting for beauticians.
Our Pricing
At Swan Books, we tailor our pricing to fit your business’s specific needs. Our bookkeeping services ensure that your business finances stay up-to-date using leading cloud accounting software like Quickbooks or Xero. Whether you prefer monthly or quarterly updates, we keep you informed about your business profits consistently. We cover all areas of bookkeeping, ensuring thoroughness and precision.
The pricing for our bookkeeping services varies based on the volume of transactions each month. For a customised quote and a detailed breakdown, please contact us.
Registration
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Registration of you and your business self employment with HMRC.
Self Assessment Tax Returns
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Preparation of tax calculation, preparation and submission to HMRC and financial statements
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Prices may vary based on your business records. Please get in contact for a free consultation.
Bookkeeping
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Keeping your business finances up to date with cloud accounting software Quickbooks or Xero. Monthly or Quarterly updates providing you updates of business profits. All areas of bookkeeping undertaken.
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Prices vary permitting to volume of transactions each month.
Books Clean Up
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If your accounts are in need of a tidy up and you want to upgrade your internal procedures for easier processes, you have come to the right place!
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Prices vary client by client, please get in touch to discuss further.
VAT Returns
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Quarterly VAT returns prepared and submitted with Making Tax Digital compliant software with all deadlines met.
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Prices start from £175.00 per quarter
Power Hour
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One to one power hour discussing your business accounting and how to make improvements to make your finances run more efficiently within the cloud software of your business alongside training on how to get the best of your software.
Payroll
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All aspects of payroll processes ensuring all tasks are carried out by all deadlines and RTI compliant.
- Weekly or monthly payrolls
- Pension administration completed
- RTI compliant with HMRC
- Payroll year end service and reporting