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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Charlie Baxter2025-02-06Stacey has been my accountant for 2 years now after having returned from setting up an online business in Australia and I can't recommend her enough! As each tax deadline approaches, she has been incredibly helpful, taking the time to explain things I’ve always found difficult to understand. She also tidied up my Xero accounting (a multiple currencies one 🤢), which I had left in a bit of a mess, and made sure everything was in order. On top of that, she helped me identify legitimate business expenses I could claim, which was a huge help. Highly recommend!Trustindex verifies that the original source of the review is Google.Jessica MacMillan2025-01-31Oh, Stacey where do I even begin? I first met Stacey in August 2024, and from that moment, I knew I wanted to switch accountants. Her presence is simply incredible. She’s not only extremely knowledgeable but also genuinely supportive of both you and your business, always striving to achieve the best outcomes. I’m so grateful to have met her and can’t wait to grow my business with Stacey by my side!Trustindex verifies that the original source of the review is Google.Tom Alderton2025-01-28Stacey is the best around 🙂Trustindex verifies that the original source of the review is Google.Sophia Kelleway2025-01-28Stacy was fantastic with helping me sort out my self assessment, she made it so easy for me to understand and she was so easy to talk to. I can't recommend her enough🥰🥰 xxTrustindex verifies that the original source of the review is Google.Alin Lebanov2025-01-28I cannot praise enough the quality of services offered by Stacey @ Swan Books along with her team. This is the first time I'm using their services and I would recommend them 100%. The whole process was so straight forward and the communication crystal clear. Definitely going ahead with them for the next financial year!Trustindex verifies that the original source of the review is Google.Ash2025-01-28Excellent service thanksTrustindex verifies that the original source of the review is Google.Kirbie Shrimpton2025-01-22Stacey & her team are beyond helpful! I could not recommend them more, no question is a silly question! They make being a sole trader EASY! Soooo happy i found them!!Trustindex verifies that the original source of the review is Google.Harry Couture2025-01-14Brilliant service - I had a few complications that were easily ironed out and explained by Stacey. Would recommend to anyone!Trustindex verifies that the original source of the review is Google.Gina Toyer2025-01-08Brilliant and patient accountant highly recommendTrustindex verifies that the original source of the review is Google.Ian Bement2025-01-03Great service, kept fully informed of when things would happen. Can't fault Stacey for the way she dealt with our tax returns. First time using Stacey, everything straight forward and all information presented to us in an easy to read/understand format.
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