As a salon owner, juggling various financial responsibilities can be a challenging task, especially if the financial side of things isn’t your strength. But it goes without saying that managing the finances of your business is just as critical to your salon’s success as exceeding your clients’ expectations.

While it can feel like a gruelling, and often unlikeable part of being a salon owner, you’re not alone if that’s how you feel.  Many business owners across many industries feel the same.

One of the first things most successful business owners will advise is to find a good advisor or manager of your business’ finances, however there’s still responsibilities and tasks that require your attention.

If you find it challenging to focus on these and often leave it until the final hour to be done, here are some important reasons to set regular time in your calendar to tackle these tasks. Be sure to allow enough time so you avoid errors and make the process more efficient and pleasant - your business will benefit and once you’ve got into routine, so will you.

Employee Satisfaction and Retention

Happy employees are vital to the success of any salon. Consistency with payroll matters helps your employees understand their pay slips and timely payment of superannuation, leave, etc, shows your commitment to their financial security. This commitment fosters a sense of loyalty and job satisfaction and boosts morale among employees, which can contribute to increased retention rates.

Avoiding Penalties

The financial side of your business requires compliance with a myriad of legislation which is why many salon owners find it daunting.  By setting aside time each week for financial tasks breaks it down into manageable, understandable pieces and ensures your compliance with government regulations, avoiding penalties and legal issues that may arise from non-compliance. This proactive approach will give you peace of mind to focus on other areas of salon ownership.

Tax Benefits

Paying superannuation regularly can offer tax benefits. Timely contributions for your team or yourself (just because you’re the salon owner doesn’t mean you shouldn’t be benefitting from super) are generally tax-deductible, reducing your taxable income - creating savings for your salon business and aligning with legal requirements and savvy financial planning.

These are just a few ways to take a positive look at your salon’s financial responsibilities.

As always, when it comes to money matters for you and your business consult your accountant, tax advisor or financial consultant - if you don’t have one of those yet, maybe put that on the top of your list.