Spa Ownership Workshop: Keeping Your Back Office Organized and Productive

For a spa owner or manager, an organized office is essential to success. Keeping track of finances, clients and what services they like. Also consider the paper trail that accountants like to have for the tax  man.  In case of an IRS audit it is possible to just bring out a shoe box of receipts, but that doesn’t show very much organization and as a business person you owe it to yourself and to the other professionals you do business with occasionally to handle things in a proper, professional manner.

When keeping track of finances, multiple manila folders and large eight by ten inch envelopes are great ways to keep track of receipts, contacts and other business paperwork. For instance, let’s say you decide to run a series of commercials on WXYZ radio station, newspaper ads in the local daily paper, and print up flyers to distribute in various locations. These are all valid advertising expenses and entitle you to tax deductions, but you must be able to prove the validity of these deductions at tax time. That’s where the folders and envelopes come in.

Mark three folders, each with the name of the medium used or project. Place all documents and contracts relating to the project into the folders along with an envelop and into the envelop add any small pieces of paper connected with the purchase, such as receipts that are hand written.  You won’t need to itemize each and every small purchase that goes towards general business. For instance, just having one folder labeled car expense gives you a place for gas receipts and paperwork concerning tires, tune ups and other things that may be deductible for the business. What is and is not deductible is determined in consultation with a good accountant. If for instance your business owns your car, or leases it, then there may be more tax benefits than simply keeping the car in your name and taking the mileage deduction.  Meticulously keep track of the folders and envelopes and if you have a file cabinet keep them in it. If not, cardboard file boxes are inexpensive and can be purchased at the office supply store, or ordered online.

Some people prefer to keep their hand written records only, and others prefer to use a computer program to keep track of expenses. Either method is fine, just as long as you stay on top of your record keeping. You need to be accurate, and to be professional. You owe it to yourself and your business.

Although a mundane task, an organized office can actually help to increase revenues and build your spa or aesthetics business – so it is always worth the time and effort!