You Don't Own a Salon. You Own A Business.
In his latest blog, Leon Alexander Ph.D., challenges industry conventional thinking to help owners add more to their bottom lines.
Navigating the Confusion Around PPP
While the PPP loans helped many owners through an unimaginable crisis, there still is a lot of confusion and frustration around the loans. Kopsa Otte's April McDaniel shares those frustrations and provides the latest document to address some of the concerns.
by April McDaniel, CPA, CRSP, Kopsa Otte
June 1, 2020
2 min to read
"We are in this together!" This has been a common theme during this Covid 19 pandemic, for sure.
As an accountant who typically spends my time helping salon owners understand their financials and save money on taxes, I’d never have guessed how I’d spend the Spring of 2020. I’m sure I share this feeling with all my friends in the beauty industry and those in the professional accounting/tax world.
Times are not normal. Our lives are not about tax savings and financial statements right now. It’s about surviving this crisis. It’s about pivoting and providing what our clients need us to do RIGHT NOW.
Right now, that’s dissecting and communicating the vague and late-coming guidance surrounding the Paycheck Protection Program – the dreaded PPP loans. I say dreaded because it’s SO complicated.
It was sold by many to be free money as long as you spend 75 percent on payroll. Well, we all know there are always rules that go along with any government program.
I have to give props to our fearless leaders in Washington D.C. for getting this program out so quickly. The challenge has been that guidance on these programs has followed too late.
My conversations with owners vary from ending in tears because there is no opening date to celebrating grand re-openings. My days are filled with walking through a forgiveness calculator with clients that changes weekly, sometimes daily.
For some, the risk of paying payroll without the rules is too much. To complicate things further, they can’t match what their team is getting on unemployment. Another big flaw.
Our role has been to provide guidance to our clients on what we do know and expose the risk associated with what we don’t know. And, I have to say I’m tired of saying “I don’t know!”
I’m hopeful that the 8-week period will be extended and that we get more clarification on the rules, but unfortunately for those who got their money early in the first round, the answers may come too late.
We will keep doing our best to help given the guidance and lack of guidance that we have. I’m proud to be part of the Kopsa Otte team & be surrounded by this wonderful industry.
Here are some links to some new, and not so new information, surrounding this topic:
Journal of Accountancy Article on the new Interim Final Rules, issued May 22.
The most up-to-date FAQ for the PPP Program
Subscribe to Our Newsletter
More Salon Management
Are Your Stylists Doing Free Hair on Your Time? Introducing the 'Win-Win' Staff Services Playbook
In her latest blog, Amy Pal helps you develop your own clear guidelines around complimentary free employee services.
Caring for Your Caregivers at the Front Desk
From managing air traffic on busy days to handling frustrated guests' complaints, your front desk team often serves as the salon's emotional shock absorber. From a customer service lesson from the DMV to a list of strategies for caring for your front line, our experts offer ideas for alleviating stress, celebrating wins, and setting goals.
by Stacey Soble
What's Really Happening with Salon Retail and How to Reclaim Your Revenue
According to the KIM Report, top-line salon revenue appears steady or slightly up, but that growth is driven primarily by service price increases. Beneath the surface, retail performance and client visit frequency (appointment drift) are under real pressure. In his latest blog, Alain Audet offers strategies for keeping your salon's retail sales strong.
Trimming Your Tax Bill by Putting Family on the Payroll
Putting your family to work in the salon offers some real tax benefits, but you have you have to play by the rules of the tax code to claim them. Azarvand Tax Law's Leticia Skrabut, Esq., shows you how.
The Art of the WOW Experience
Discover how to create a true “WOW experience” for every client by first building a culture where your team feels engaged, empowered, and inspired. Drawing on Calvin Stovall’s Iconic Framework, this blog explores how salon, spa, and clinic leaders can strengthen culture, elevate customer experience, and build a business that stands out for the long term.
Sponsored by Phorest Salon Software
Why Wellness Belongs on Your Salon's Growth Plan
The wellness industry is growing fast, and salons and barbershops already are an important part of it. In her first blog, Tracy Rado shares where the wellness dollars are heading, and how salons can grow with this movement.
Why Your Revenue Looks Good But Your Business Feels Stressed and What to Do About It
While salon sales are increasing, owners often feel they're working harder for the same or less profit. Leverage Q2 data from The KIM Report, Alain Audet reveals some of the structural changes that are dampening your growth and why your region and your salon size matters.
Why Your Holiday Season is Won in September
Weaknesses in your business are amplified during the Holiday Season. Spark Pro Global's Lucy Randall shows you five things to do now to have the strongest holiday season yet.
Appearance Standards are the New Dress Code
In Kati Whitledge's latest blog, she shares how salons have moved away from dress codes and embraced appearance standards. But by removing strict dress codes, some businesses may have unintentionally lowered their appearance standards. Whitledge helps you explain to your team why an appearance standard is important and how to smoothly implement a new appearance policy.
Working Through the Gray Areas of the Small Business Health Care Tax Credit
The Small Business Health Care Tax Credit is a non-refundable tax credit for for-profit businesses that provides a financial incentive for eligible employers who offer health insurance coverage to their employees. Leticia Skrabut, Esq., walks you through how to claim that credit.
5 Things Every New Stylist Should Learn Early
Developing strong work habits early in one's career supports long-term success in the salon industry. Jesse Linares offers new stylists his top five tips.
The Four Numbers Every Salon Owner Should Know
Most salon owners have no idea what these numbers are. You can hit record sales and still have a profit problem. The difference comes down to four numbers almost nobody was taught to track.
Sponsored by Strata Salon Systems™
Your Salon Can't Survive Without You. That's the Problem.
A five-area audit every owner-dependent salon needs to run. You built something that looks successful. Now find out if it can survive without you.
Sponsored by Strata Salon Systems™
Waiting for the Right Time Is a Decision. Here's What It's Costing You.
Every month you put off fixing the problem, it gets bigger, more expensive, and harder to solve.
Sponsored by Strata Salon Systems™
A Partner in Business and in Life
At Janet St. Paul Studio for Hair and Beauty, Director of Operations Natasha McMillen helps bring her wife Janet St. Paul's vision to life, elevating every system from education to operations.
by Stacey Soble
Back to Business with the Pinstripe Trend
Expand your color service menu with the Pinstripe technique. Brooks and Brooks' Marlon Hawkins walks you through the technique.
by Stacey Soble