Beauty industry companies are becoming more and more popular due to their fast-growing market. It’s quite a diverse industry that’s actually a combination of a couple of different market segments, including cosmetology, aesthetic medicine, and hairdressing. But that doesn’t mean that the beauty industry doesn’t need proper accounting and bookkeeping services. In fact, they need it as much as any other business.
If a business owner runs a beauty industry company, then they actually have to maintain not only the accounting and bookkeeping, but also complex accounting, especially when it comes to taxation. Let’s look at how accounting principles work for beauty industry companies.
What Types of Records Must Be Kept for Beauty Industry Companies
Beauty Industry companies, just like any other company, need to maintain certain documentation. These records will differ in number depending on the company’s size, the nature of the business, and the number of taxation issues a business owner is facing.
For example, if a business owner is doing small-scale business, such as a hairdresser, they will need to maintain records of the following:
Cash Register Receipts
These records should include cash register receipts, bank deposit amounts, and checks used to pay for expenses.
Bank Deposit Slips –
The slips must be kept for one year after the end of the year in which the deposit was made. The slips must be kept for one year after the end of the year in which the deposit was made.
Inventory Records –
These records should include what is in inventory, receipts, and sales of products and services.
Check Register –
This record should include information on checks written and payments made.
Credit Card Register –
Any credit card transactions must be recorded in a register.
Credit Card Receipts –
For credit card purchases, receipts are required so that records are accurate and may be audited.
Tax Records –
Tax records for beauty industry companies include sales tax and payroll tax records.
How Are Beauty Industry Companies Taxed in Australia?
Beauty industry companies are taxed the same as any other company. They are taxed on their revenue and must fill out a business activity statement (BAS) each year.
Depending on a business owner’s income levels (both for themselves and for the employees), they will have to complete a tax return.
It is essential for business owners to be aware of their obligations and responsibilities so that they don’t do anything illegal.
How to Organise Your Beauty Industry Company's Accounting and Bookkeeping
Organising the accounting and bookkeeping for a beauty industry company requires not only keeping the records, but also performing the accounting itself. When it comes to accounting, it is always a good idea to use a software. An accounting software will not only make the process of bookkeeping and accounting easier, but it will also prevent mistakes and keep records in an organised manner.
Organising the bookkeeping is also essential. Whether a business owner is running a small-scale or a large-scale company, they need to properly organise their bookkeeping. Organising the bookkeeping means being able to quickly spot any issues. It’s always best to use a software which is meant for bookkeeping organisations. For example, Xero is a software that enables business owners to organise their bookkeeping while providing them with the ability to properly monitor the financial health of their businesses.
Making the Right Accounting Decisions for Your Company
The key to any successful business is understanding how it needs to be managed. The accounting and bookkeeping is no different. Running a business is a huge responsibility, but it can be accomplished. Accounting and bookkeeping are the cornerstones of running a successful business, and so, business owners need to understand how to do it properly.
New Wave Accounting provides end-to-end accounting and bookkeeping services to help you reach your goals. Whether you’re in the beauty industry, eCommerce, medical, or even financial, our Gold Coast accountants will work with you to help you grow your business. Get in touch with us today to book a consultation with us.