4 Ways a Bookkeeper Can Make Your Life Easier

Whether you’re a lawyer, restaurant owner, or tech founder — as a small business owner, tracking your company’s finances is an important part of your job. Unfortunately, it usually lands at the bottom of the to-do list, far from “revenue-generating” activities like sales and servicing clients.

But the truth is that accurately maintaining your company’s books can help you make more money and grow your business. Without financial records, you’d never be able to do things like invoice clients, calculate profit margin, or avoid overpaying in taxes.

That’s where a bookkeeper comes in handy.

A skilled bookkeeper can help take the overwhelming task of monitoring your business’s financial activities and turn them into meaningful, actionable data that you can use. So, what exactly does a bookkeeper do?

1. They enter (AKA “post”) financial transactions into your software or spreadsheet

Using receipts, invoices, credit card statements, and bank statements, bookkeepers record every single financial transaction of the business. If this is currently in your job description, you know it takes a lot of time, patience, and a well-trained eye. With accurate records as a solid foundation, you can better understand how your business is performing and see where it can improve.

2. Reconcile accounts and note the differences

By regularly reconciling credit card and bank statements, bookkeepers can help uncover areas where you might be overpaying for materials or services, as well as situations where you may not be getting paid what you deserve or agreed on.

3. Receive and record cash and checks

When you have a bookkeeper tracking the money coming into your business, you can rest assured someone is making sure you’re getting paid what you’re supposed to. Bookkeepers become intimately familiar with your accounts receivables, so they’ll know who’s late with their payment or hasn’t paid the total they owe. Without someone regularly looking over this part of your business, you could be losing money without even realizing it.

4. Produce financial reports that help you better understand your business

With accurate, timely records, bookkeepers can run reports like profit and loss statements and balance sheets. These types of reports are critical to helping you make wise decisions and understanding all of the implications of one choice over another.

At Xendoo, we make bookkeeping affordable and personalized for exactly what your business needs. We even reconcile and classify every transaction with a tax savings lens, so you’re set up for success at tax time.

 

This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. Xendoo assumes no liability for any actions taken in reliance upon the information contained herein.

 

When to hire a Bookkeeper and an Accountant

Small business owners are experts at the products and services they sell. Many of them, however, are not so knowledgeable about — or interested in — the financial operations of the business. Recording sales transactions, paying supplier invoices, doing payroll. Boring!

But it has to be done. Otherwise, it just piles up and turns into an even bigger headache. Transactions get lost, mistakes are made, bills aren’t paid, filing taxes is a nightmare. If this is your situation, a professional bookkeeper can take the load off your shoulders and leave you free to do what you love in your business.

What a bookkeeper does

A bookkeeper is your day-to-day financial pro, maintaining complete and accurate records so that your small business can operate efficiently. A bookkeeper’s responsibilities include:

  • Implement standard accounting systems that your accountant can easily use
  • Record daily sales, purchases, payments and receipts in your ledgers
  • Go over your existing records and fix mistakes made by inexperienced staff
  • Enter tax-deductible expenses with the correct coding
  • Help you understand what the numbers mean
  • Notify you of potential issues such as cash flow problems or delinquent invoices

What an accountant does

Your accountant is your high-level expert. An accountant’s responsibilities usually include:

  • Examine and adjust accounts
  • Provide long-term business planning and tax-consulting advice
  • Use your bookkeeping data to file tax returns and other official reports
  • Review and handle IRS notices

How to find the right people

Whether you decide to bring a bookkeeper on board as a full-time employee or use a consulting service, be sure to investigate your candidates carefully. After all, they will have access to confidential data and could have a significant impact on the success or failure of your small business.

One great option is a company that offers both bookkeeping and accounting services. That way, they can easily coordinate their efforts to provide you with the best quality, probably at a better price than if you paid two separate entities.

A bookkeeping company that offers cloud-based accounting software can make your life even easier. Xendoo integrates with Xero accounting software to provide small businesses with real-time numbers. Accounting, on the cloud.

When you’re ready to put your books into the hands of professionals, Xendoo stands ready to help with accounting services designed especially for small businesses. From catch up bookkeeping to payroll to taxes, our experts crunch the numbers while you get back to the work you do best.

 

This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. Xendoo assumes no liability for any actions taken in reliance upon the information contained herein.

 

A Prettier Profit and Loss Statement: Up- and Cross-Selling Techniques for Salon Owners

Chances are you got into the beauty industry because you love the opportunity to meet new people day after day — and help them feel more beautiful than they did when they first walked in your door. “Sales” probably wasn’t high on your list of pros.

But for better or for worse, selling products or services to clients that they did not initially come in for is an important part of your business. No, this doesn’t mean offering a bombshell blowout to a client with fine, thinning hair. Today you’re going to learn how up-selling and cross-selling can be less faux-pas and more moo-lah — and why salon owners already have a head start.

First, let’s define our terms

Upselling is the practice of encouraging customers to purchase a more expensive or higher-end version of the product or service they came in for. Example: your client is scheduled for a regular mani/pedi and check-in staff offers the option of a deluxe spa pedicure.

Cross-selling is the practice of encouraging customers to purchase products or services that complement the original sale. Example: your dark-haired client has decided to go blonde, so you offer a conditioning treatment to help offset the drying effect of harsh chemicals.

So why does this matter anyway?

Bottom line, up- and cross-selling are critical to your bottom line. By not focusing on cross-sales of high-margin products in your salon or up-selling services that don’t add on too much time for your stylists, you’re leaving profit on the table. The probability of selling to a new customer is 5-20%. The probability of selling to an existing one is 60-70%.

But even more importantly, up- and cross-selling are opportunities for you to bring more value to your customers, which should always be your goal! When determining if a particular moment is a good opportunity to up- or cross-sell, ask yourself – will this make my customer’s life easier? Will it help them feel more beautiful? If the answer is yes, then you know what to do

So you said I already had a “head start.” Cute pun, but how??

As a salon owner, you know better than anyone the unique relationship your clients have with their stylists. They don’t just know their names, but details about their lives and families. Your clients entrust their hairdresser with their life- well, hair.

Never forget that your stylists have a special ability to influence your customer in a way most salespeople do not. If they trust them enough to take sharp blades very close to their head and alter their appearance in irreversible ways (well, at least for a few months) then they will trust their recommendation on products and special services. Remind your stylists and staff that they have this superpower! It’s critical to your success and theirs.

Ok, I’m convinced. How can I get started?

So now that you are a firm believer in up- and cross-selling, here are three tips you can implement in your salon or spa immediately:

1. Create a beautiful display area that is…

  • highly visible from the window or waiting area
  • well organized and always well-stocked
  • easily browsable area – no one wants to ask if they can step behind your check out station to browse products
  • because eye level is buying level

2. Make sure your staff is using the products for sale!
In the beauty biz, you’re in a unique position to introduce new products to customers in a risk-free way where they can see the results in real-time on their hair or skin. Allowing customers to purchase salon-quality products that your stylist’s trust is like giving away a little trade secret – in the best way possible – making your customers feel like they have a leg up with their beauty routine

3. Equip your staff to make the sale!
At a minimum, everyone in your salon should be able to explain every item you have available for purchase. Beyond that, some basic sales training can make a big difference. Start by teaching your staff to ask themselves a few simple questions when considering an up- or cross-sell:

  • Does this complement your client’s service?
  • Is your client in a hurry or have they made it clear they’re on a tight budget?

Remember, you may not see the result of your up- and cross-selling efforts immediately. But lucky for you, and if you’re doing things right, you know you’ll have another shot with your customer when they come in for their next service.

 

This post is intended to be used for informational purposes only and does not constitute as legal, business, or tax advice. Please consult your attorney, business advisor, or tax advisor with respect to matters referenced in our content. Xendoo assumes no liability for any actions taken in reliance upon the information contained herein.