5 Bank Accounts I Suggest for your Salon Business.

“Don’t make the same mistake I did.”

Nina Tulio

When I say it tell you it was a nightmare. That is an understatement.

Story time…When I opened my salon, I opened it with ONE bank account. All of my funds came in and out of that account including payroll. BIG MISTAKE. Why? Well, one of my hair stylists had her purse stolen with a payroll check in it.

Let the games begin. I had to cancel that bank account and all the credit cards tied to it. I had to get an entirely new bank account, new credit cards, add in all my vendors, change the info with my payroll company, the list goes on. I mean you know how much is tied to your business bank account. It was a never ending cycle for over two weeks.

This is why I wanted to share my story and give you some tips so you wouldn’t end up like me.

5 Types of accounts I suggest.

1. Main account or revenue account. This is where all your sales and deposits go and would be used for the day to day operation for your salon business.

2. Payroll account. This account is strictly used for your payroll and payroll only. You can easily transfer from your main account to payroll account right before payroll is due.

3. Savings account or cash cushion account. This can also include paid time off for you and your team so you don’t have to stress when anyone (including yourself) is taking a vacation. Keep in mind you also want to secure at least 3-6 months of business expenses just in case. This is what I call a cash cushion.

4. Tax Account. I suggest automatically putting in at least 25% of NET profit into this account weekly or monthly so you don’t have to dive into cash flow to pay your quarterly taxes. *Always talk to your CPA and do what they tell you to do “)

5. BONUS- Profit Account. This account will allow you to siphon off your profit each month. If your profit is left in the revenue account, you just might be enticed to spend it. EX: If you have an average of what your monthly profit is each month. You can create an auto transfer into your profit account each month*.Be sure to talk to a CPA or Certified Financial Advisor so they can further guide you. Check out CPA, Michelle Cook and Certified Financial Planner Brett Fellows.

**If you have direct deposit, I still suggest having a separate payroll account just in case your main account is compromised your payroll will be unaffected.

Looking to learn more from Nina? Check out Make That Money course for suite owners/renters. And in my Synergy course for commission owners.

Psst! MORE Free resources are a click away!

View More Articles