The hair dreasser

lililili New MemberRegistered Posts: 14
Hello everyone

This is the case, I know some one who run a business and don't think she knows her income and expense at all, She is a hairdresser, i am her client and in many occasions i saw her using a money from till for any expense she wants e.g milk, tea, coffee, transport, or lunch...............
I wanted to help her and same time to practise how could I show or do her business accounts. The problem how i am gone starts and proposed to her? As general i need to starts to work out her income and expense, stock, capital, loan.... Can any one please advise what I need to do first; Anything will be appreciated as i am so desperate ,willing to help and to get experiance..

Thank you

Comments

  • Jon_1984Jon_1984 Well-Known Registered Posts: 186
    Having worked in an independent shop in the past I cannot see what the issue with using cash from the till is - provided sales recorded by till minus receipts for expense equals Cash at end of the day.
  • lililili New Member Registered Posts: 14
    i agreed with you but the thing is you need to have a proper sales of record, i did have chat with her once how the profit of the bussiness and told me strugling to cover the expense, no much profit and i can see how the business can be successful if she got more staff but she works so hard to cover everything by her self and one family friend assistant, in the salon there is too much stock which they hold money, not been sal e for long time, in generall there is no control of money come in in and out.
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,440
    A lack of cash flow management is not uncommon in a cash based business.

    As long as a note is kept of opening float and all cash taken then sales can be calculated. Getting her to control how much she spends may prove more difficult and she may not even want to.
    Regards,

    Burg
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