Page 71 - Demo

WHY IT IS IMPORTANT TO TRACK YOUR INCOME
Depending on the stage you’re at in your business, you might need to purchase things, such as furniture for a studio, makeup for your kit, or a loan to grow your business, and if you aren’t keeping track of what you’re spending then it will be hard to know what you’re making. It also puts into perspective where time in your business should be going. For example, if you know you’re making $100 from one client, and $1500 from a bridal booking, you then understand where the money is coming from and can decide where you want to focus your time. It’s important to know what you’ve brought in at the end of the month. For makeup artists, work can also pick up in the summer (wedding months), and slow down in the winter, so it’s important to understand and anticipate when your income is expected. This ultimately shows you what you can afford to do and when.
COLLECTING PAYMENTS
Consider your clients the main source of your business because they truly are. Collecting payments from clients and timing it around when you expect to spend money is important so that you aren’t in a deficit all at once, and you aren’t at an inflation all at once. This means that you don’t have - $500 one month and then + $30,000 the next. You always want to keep steady with your balance so that you can have the flexibility to invest and spend when you need to.
Offer discounts to expedite a payment: If you do just a small discount, companies or clients will often go for this. For example, if you would rather make all of the money up-front, suggest a 10% discount rate, rather than paying over a longer period of time.
Do interval billing: Get a non-refundable deposit to avoid cancellations, and then offer for someone to make payments.
Bill for out of scope work: If you get booked as a makeup artist and the client asks for extra things, then charge for that. Always outline what is included in your service and then what the cost is for common additional services and add-ons. This lets the customer know what the extra things cost.
BOOKKEEPERS VS. ACCOUNTANTS
Bookkeepers: Complete the basic day to day transactions (expenses).
Accountants: Are better at more complex financial reporting and taxes. Generally, accountants have a wider grasp of business and financial concepts. An accountant can also do bookkeeping.
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