Our area is home to may Spas and personal care facilities. Understanding key accounting practices can be helpful in the success of this type of business. It is important to have a system in place that allows you to track what is working and what can be improved in your business. Often individuals in the spa setting are in fact independent contractors responsible for their own taxes. The spa itself is renting practice spaces. Or, there are employees on staff. Each configuration has specific tax implications.
There are also important management and metric tools that help spa and hotel/resort managers understand the financial position of their business. These include.
- Measurement of revenue per occupied room.
- Room Utilization or Occupancy (A 1 percent increase or decrease in room utilization can be worth about $50,000 to $75,000 in revenue per year in an average size spa. Most spas operate at 35 to 40 percent.)
- Profit and Loss
- Forecasting busy periods to adjust staffing.
- Financing for growth
GMG CPA's can help you set up an accounting system that allows you to track what is important to you and your business.