Beauty Salon Accounts

lorraine

Hi All,

I have been approached by someone who owns a ltd co which is a beauty salon. Please could you tell me if there are any complications with this type of accounting or if there is anything to watch out for so to speak. I have never done accounts of this nature before (I have done accounts for ltd companies before but never for a beauty salon).

All help v v much appreciated.

Fingers crossed that it will be pretty straight forward!

lorraine

lorraine wrote: »

Hi All,

I have been approached by someone who owns a ltd co which is a beauty salon. Please could you tell me if there are any complications with this type of accounting or if there is anything to watch out for so to speak. I have never done accounts of this nature before (I have done accounts for ltd companies before but never for a beauty salon).

All help v v much appreciated.

Fingers crossed that it will be pretty straight forward!

Hi All, could someone please answer my question.

deanshepherd

The biggest issue for salons tends to be the employment status of the various workers engaged. Get that right and everything else should be plain sailing..

lorraine

Thank you for your reply I may have more questions further down the line.

Jmann

deanshepherd wrote: »

The biggest issue for salons tends to be the employment status of the various workers engaged. Get that right and everything else should be plain sailing..

How do you get it right? I mean what and how to do.
Thanks

GodalmingYellow

As Dean said, you need to determine if the "staff" are employed by the salon, or (as is more common) if they rent a space in the salon (and are therefore self employed). You'll need to be careful comparing the actual facts with the HMRC guidance on employment v self employment. If they claim to rent a space, get a copy of their contracts and check the wording for yourself. The contracts should make clear the basis of the rental agreement and so will guide you into what to account for.

The fact that the salon is a limited company makes no difference (apart from the accounts needing to be in statutory format and the need for a CT600 rather than SA Return of course).

Other factors to be careful of are supplier discounting of beauty products and stock maintenance, especially for theft and out of date products.

Otherwise it should be straightforward.

lorraine

okay I will take that into consideration. Thank you

Ian the Auditor

The other major consideration relates to income. If they sell vouchers or courses of treatment you may need to consider deferred income.

lorraine

Ian the Auditor wrote: »

The other major consideration relates to income. If they sell vouchers or courses of treatment you may need to consider deferred income.

So the vouchers won't be accounted for in the period they are purchased is that what you are saying??