Running a spa means working at the intersection of business and human experience. A spa owner’s prerogative is to create a relaxing atmosphere for clients, but that goes beyond just providing the right services. Financial management plays a critical role in delivering a stress-free experience. Think about it: on the front end, clients don’t want to be inconvenienced while paying for services meant to help them unwind. On the back end, disorganized finances can impact business operations and quality of service.

Keeping physical spreadsheets and separate reporting systems can create information siloes and increase the likelihood of human error. With organized finances, spa owners can better manage their business, offer competitive prices and promotions, streamline compensation, and offer a smooth checkout experience, enhancing both customer and worker satisfaction and, therefore, retention.

But, not to worry. Spa owners don’t need to run out and hire an accountant. Today, there are digital tools and best practices that can be used to elevate bookkeeping from the traditional pen-and-paper models. With technology, spa owners can integrate all their bookkeeping into one device for full visibility – saving time and improving accuracy.  

Read on for a few ways in which integrated tools can help spas elevate their accounting and enable growth.

Integrated Payment Processing

Cash registers, siloed credit card processors, and tedious manual data entry are officially outdated. Receptionists should not have to spend hours reconciling bank statements to determine if employees have been paid correctly for all their work or if the clients were charged the correct amount for the services they received. With integrated payment processing, checkout is simpler and speedier because receptionists don’t have to switch between systems. Not only does this cut down on client wait times, thus improving service, it also makes the lives of employees easier by prompting clients for tip selection during checkout and reducing costly human error. The less time spent tracking payments and counting cash, the more time employees can focus on the critical areas of the spa business.

In fact, integrated credit card processing can even increase spa revenue. Here are a few ways:

• Employee time savings: Integrated credit card processing updates payment data automatically, so employees don’t need to enter data manually. Additionally, integration simplifies the payment process, allowing spas to save money and time on employee training.
• Keep credit cards on file: Not only can spas streamline checkout, but they can also charge no-show fees or accept deposits for appointments made online. No-shows can be costly to spa businesses, and clients are more likely to show up (or cancel in a timely manner) if they know they will be charged a fee.
• Membership packages: Spas can set up recurring revenue and encourage clients to book packages and services in advance, making it more convenient than ever.

Reporting

Manual bookkeeping is no longer sustainable in today’s age. As consumers expect more digital experiences, from online booking to cashless tipping, spa owners must make sure their infrastructure keeps pace. Digital tools should offer built-in reports that centralize and analyze all the information about a spa’s sales, clients, products, and more, including:

• Profit and loss: Owners can analyze the income, expense, and net profit of their spas to make the right choices and ensure continued business growth.
• Sales and total: Rather than tallying up total sales at the end of the day, spa owners can see this information conveniently gathered in a reporting system (which is integrated with the payment processor).
• Product usage: Owners can keep track of the costs of providing services and how it affects their bottom lines. It’s simple to track product backbar usage automatically, apply backbar cost to services, and even adjust the commission on services based on backbar costs.
• Payroll: Owners don’t need to outsource payroll. Instead, they can use a digital system that integrates with sales and automates processes – just set it up once and print checks on payday.
• Commission and bonuses: Commission doesn’t have to be stressful. Spa owners can set up straight or step commission scales for their products and services, and even add exceptions or bonuses for specific items.

It’s a bonus if digital reporting tools can be synced with QuickBooks, making it easier to track employee timesheets and run payroll. It also eliminates double data entry; with an integrated tool, business owners can capture data from spa reports and automatically populate the QuickBooks accounts with point of sale transactions, paid invoices, and other financial data.

With all this data in one place, spas can easily track financial growth, measure employee performance, and set weekly, monthly, or annual goals. This real-time insight enables businesses to remain agile and adaptable. It’s especially valuable during tax season, when spas need to generate accurate reports of what was done, who was paid, and when. By centralizing this information, spa owners can easily answer all questions required by a tax return with the push of a button.

The modern consumer expects seamless, convenient experiences. Similarly, today’s employees expect easy-to-use, next-generation tools that make their jobs simpler, which means spas must contend with these pressures while staying afloat. Efficiency and productivity are the differentiators of the day, especially when it comes to financial wellness. Spa owners that choose to modernize their accounting and bookkeeping will empower their businesses and employees to evolve for growth, rather than getting left behind in the pen-and-paper dust.

Jeff Dickerson is CEO of DaySmart Software, the makers of Orchid Spa Software, a leading spa business management software for appointment booking, staff management, payment processing, marketing, and customer communications for spa professionals worldwide. Dickerson has over 25 years of experience building software companies and developing technology that empowers and drives real business results for customers.