Strict Standards: Non-static method utf_normalizer::nfc() should not be called statically in /home3/hairdcom/public_html/hairdressersforum/includes/utf/utf_tools.php on line 1804
[phpBB Debug] PHP Warning: in file [ROOT]/includes/session.php on line 1038: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/utf/utf_tools.php:1804)
[phpBB Debug] PHP Warning: in file [ROOT]/includes/session.php on line 1038: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/utf/utf_tools.php:1804)
[phpBB Debug] PHP Warning: in file [ROOT]/includes/session.php on line 1038: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/utf/utf_tools.php:1804)
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions.php on line 4784: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/utf/utf_tools.php:1804)
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions.php on line 4786: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/utf/utf_tools.php:1804)
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions.php on line 4787: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/utf/utf_tools.php:1804)
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions.php on line 4788: Cannot modify header information - headers already sent by (output started at [ROOT]/includes/utf/utf_tools.php:1804)
How Many Checking Accounts Does Your Salon Need? : Salon Business Articles
Register Now for FREE

HairdressingWorld Forums


  • Advertisement

How Many Checking Accounts Does Your Salon Need?

This section of the forum is where members publish Salon Business Related Articles and How Tos. If you enjoyed reading an article or found it helpful/informative please log in or register to thank the original poster.
Forum rules
This section is where members publish their own Salon Business Related Articles and How To's. If you enjoyed reading an article or found it helpful/informative please log in or register to thank the original poster.
If you'd like to submit an article, please press "New Topic". We look forward to reading it!

How Many Checking Accounts Does Your Salon Need?

Postby leprechaunsalon » 05 Aug 2011 08:24 pm

Set up your accounts so you always know where your money is.

At your salon, you’re taking payments all day. It feels good to deposit all that money at the end of the day.
But when it comes to making payments, do you ever find yourself bouncing checks or not being sure you have the balance you need to cover an online payment, even though you know you made more than enough money that month?
The problem is that your salon's customers pay many different ways: Some with cash – which clears immediately; some with checks – which can take several days to clear; and some with credit cards – which can take anywhere from 24 hours to four days to be deposited into your account, depending upon the type of card used. You can track all of these pay types in Leprechaun Salon Software.

Constantly monitoring your salon's bank account to track when payments are clearing is a waste of time. You need a reliable and proven method to ensure that your payments and payroll are covered without having to spend valuable time constantly accounting for every dollar.

The Three Account System
First, remember that even if you cleared a couple thousand dollars today, it isn’t all in the bank tonight – or even tomorrow. If you use a single account to deposit all payments and make all payments, you can never reconcile the balance on the account because constantly, every day, there are payments coming in and going out from a number of sources.
The simple solution is to open three accounts – a system which will ensure that all payments are covered, and that you can know immediately what your balance is at any time.

The Deposit Account - The first account you need is the Deposit Account. This is like the account you have now where all revenues from your salon flow into the account. The difference is that you never write checks or make individual payments to vendors from the Deposit Account.

The Operating Account - The second account you will use to write all checks and make all payments to vendors, utilities such as phone, internet, electricity, etc. The only thing you won’t pay from this account is payroll.

The Payroll Account - Which brings us to the Payroll Account. The only things you will pay from this account are payroll and payroll related expenses (taxes, etc.)

How the Three Accounts Work Together
The Deposit Account collects all payments from all sources – cash, checks, credit and debit cards. The only balance that matters is the current balance showing in the account on the day you need to use some of the money.
When you finish a session of writing out checks or setting up online payments using the Operating Account, and before you send out the checks or release the payments, add up everything, then transfer that amount from the Deposit Account to the Operating Account using an online transfer.
The same applies to the Payroll Account. After you run or write out all payroll checks in Leprechaun Salon Software, tax payments or set up your online tax payment, and before you distribute the checks, add them all up and transfer that amount from the Deposit Account to the Payroll Account to cover them.
The Operating Account and the Payroll Account are what are known as “zero balance” accounts, meaning their balance is always reconciled: You always take out exactly what you put in.
And because you use online transfer to move money from the Deposit Account to the Operating and Payroll Accounts, you always know the money is there before you make the transfer or the payments.
You’ll never bounce a check again, and you’ll always know exactly where your money is.
leprechaunsalon
HairdressingWorld Newbie
HairdressingWorld Newbie
 
Posts: 18
Joined: 15 Jul 2011 07:55 pm
Has thanked: 0 time
Been thanked: 0 time

Return to Salon Business Articles



 


  • Related topics
    Replies
    Views
    Last post

Who is online

Users browsing this forum: No registered users and 10 guests

cron