Avoid These 5 Financial Mistakes in Your Salon

Running a salon or a beauty business is more than just great haircuts and flawless nails—it’s also about running a profitable business. While your creative skills bring in clients, it’s your financial habits that keep the doors open and the business growing.

Here are five common financial mistakes salon owners and other small businesses in the industry make—and how to avoid them:

1. Not Knowing Their Numbers
Many salon owners and other beauty industry practitioners don’t have a clear handle on their finances. If you don’t know what’s coming in and going out, you’re essentially flying blind.

💡 Avoid it:

Track all income and expenses regularly.

Understand your break-even point.

Use accounting software or a bookkeeping service (like Solid Ledger!) to stay organized.

2. Mixing Personal and Business Finances
Using the same bank account for business and personal expenses creates confusion—and a tax nightmare.

💡 Avoid it:

Open a separate business account.

Pay yourself a regular “salary” instead of dipping into business funds at random.

Keep receipts and records for all business transactions.

3. Underpricing Services
Trying to compete by offering the lowest prices can hurt your business. If your prices don’t cover your costs (including your time), you’ll never make a real profit.

💡 Avoid it:

Know your cost per service.

Factor in time, products, overhead, and expertise.

Position your value—not just your price.

4. Ignoring Taxes Until It’s Too Late
Tax season can be stressful—especially if you haven’t been preparing throughout the year. Late filings and unexpected bills can seriously damage your cash flow.

💡 Avoid it:

Set aside tax money monthly (typically 20–30% of net profit).

Stay on top of VAT, PAYE, or self-assessment deadlines.

Work with an accountant who understands your industry.

5. Not Planning for Growth or Emergencies
Many salon owners live month-to-month without budgeting for expansion or preparing for quiet seasons.

💡 Avoid it:

Build a cash buffer for slow periods or emergencies.

Set financial goals for growth—like hiring staff, upgrading equipment, or launching new services.

Create a simple business budget and review it monthly.

Final Word
Avoiding these common financial mistakes will help you run a more stable, profitable salon. Whether you’re just starting out or scaling up, staying on top of your finances puts you in control—and sets your business up for long-term success.

✨ Need help getting your salon’s finances in order? Solid Ledger specialises in bookkeeping & accounting for beauty businesses—so you can focus on making your clients feel fabulous while we take care of the numbers.