The awareness to maintain performance and health have encouraged people to have regular treatment, both at home or parlor. These trends has encouraged some people to start the business in beauty parlor. Their experience as customers are the base for them to run the business.
However, the business competition is getting tight. The business owner is not only focus on the marketing strategy to attract more customers, but should also concern on their financial management. Most owners only handle the marketing matters, while the bookkeeping is handled by the accounting staff. The bookkeeping is still limited to sales and purchase only.
An orderly manual bookkeeping has not sufficient to recognize the monthly profit or used inventory. Parlor business is a type of service business where the financial record different from the production. It applies if the owner decides to implement accounting software, special tricks are needed to enter data. For example, haircut transaction is entered into cash bank menu. Transaction which requires products usage such as hair coloring, then coloring service is entered into cash bank , while the product usage is entered into sales. Although the coloring products has leftover, but it is recognized as sales (the leftover coloring product shall not be used by other customers).The process can not be charged if the bookkeeping is still manual. The manual bookkeeping only records the shampoo/conditioner purchase and only estimates the usage of one bottle may be used for how many usages.
It would be different if the owner applies computerized system, where the shampoo usage is recorded as costing process, which is charging the outgoing products from warehouse. These will obtain more appropriate inventory flow. Thus, it is recommended that parlor business applies computerized system. The computerized accounting system allows owners to monitor the cash flow and recognize profit accurately.
