Money Matters: How to protect your nail business & plan recovery
By Guest Writer | 29 April 2021 | Expert Advice, Feature
Ria-Jaine Lincoln, aka The Beauty Accountant, reveals how you can capitalise on a boom in clients and protect, enhance & manage your future wealth…
Now the beauty industry has reopened, it can be easy to push bookkeeping and accounts to the side. However, you do not want to miss the opportunity to plan a strategy for your business to capitalise on this while protecting and enhancing your personal wealth and the future. Likewise, if the return to work is slower than anticipated, you need to know how you can manage until things improve.
Track recovery by getting a handle on your figures. If you have a stream of clients booked in, you may be able to map out the next few months to know exactly how the business will perform and how long it will take to recover.
With taxes due to be paid by the 31 January 2022 deadline, note that the Self Employed Income Support Scheme is still taxable so while you may be expecting a lower tax bill due to the closure, check this once the grant income has been considered.
If you are a director of a limited company, it is likely you will have diminished reserves and little or no profit from the last year.
This will have an impact on the dividends you can pay yourself and the total tax you will pay if you have to draw money from the company for a salary instead of benefiting from the dividend rates. Dividend can only be paid from available profit. Bounce back loans will be due so this also needs to be considered when planning your cash flow.
I offer free Business Owner Energiser Sessions for the beauty industry to help work out the priorities for business owners after exploring drivers and values on a business and personal level.
The main priorities are:
- The aim to have financial freedom and a better understanding of cash flow.
- Being debt-free or able to manage debt comfortably. Earning enough to live and not just to get by.
- Learning more about investment opportunities or plans for purchasing a first home or second property, usually a larger property with dedicated work area.
- Time freedom and a good work/life balance.
- How to extract value from the business and save tax along with plans for exit in the future.
During these sessions, I have found that business owners scored pastimes and hobbies as a low priority. I am not surprised!
As a nail tech myself, I crave nail days and it is more than a job just to pay the bills; it is an art and a passion.
Imagine being paid everything you are worth while doing what you love, being in control of your finances, and having the means to live life as you wish.
Schedule time to carry out personal development on business management. There are so many resources online to help you use bookkeeping as a tool for success and not just to work out how much tax needs to be paid. I am so excited for the beauty industry to get back to business and wish you all the very best
I offer free discovery calls and you can also book in for the Business Owners Energiser session by clicking here.