Do You Know Your Expenses As A Makeup Artist?
Many of our students come into our courses have no idea what their business is costing them. If you are a makeup artist who is working for yourself do you know what your business is costing you? Of course, you know the cost of the products you buy but what are the other expenses that go into running a business? They really add up and are you sure you’re making a profit? If your not making a profit then it might just be a hobby.
Most makeup artists love the creative hands-on client’s side but loathe the business, spreadsheets, budget, and balance side. We get it!! However, to run a successful business, you must get this side under control.
We can’t just look at money coming into our bank account and spend away. Toss all those receipts to the side and wait for the end of the financial year to see what’s going on.
For example, you are charging $300 for makeup lessons and have three that week, now you have earned $900. However, your expenses might be $300 for the week, meaning your profit is only $600 and this is before you paid your taxes.
It’s important to record all your eligible expenses, so that you minimize the amount of tax you need to pay. If you are only keeping records of the makeup you buy, you end up paying much more tax than you need should.
So when it comes to expenses:
Your Kit - Kits are expensive and can run into the thousands. So when starting your kit only purchase the necessities. We have our students come with their kits and you would be surprised at how huge they are and the amount of products they don't need. Purchase quality products with high pigment so they last longer. Of course you will need to repurchase disposable items like spoolies, makeup wipes, q-tips, etc so look into purchasing in bulk or at discount stores.
Rent/Studio/Home office- Do you rent a space or work out of your home? Gas, Parking and tolls, hotels, food
Phone and internet, Business insurance/ renters insurance
All Subscriptions- Do you have a subscription to Bridal magazines? Canva? Those count!
Bank charges, card service provider fees, etc.
Web-hosting, marketing, email services like Mail Chimp, all advertising (web or mail outs) business cards, etc.
All vehicle expenses- The wear and tear on your car tires, oil changes and fluids, etc.
We go over so much more of the business side in our certification course. We know how important it is so we focus an entire day on it. When starting out you don't have the extra money for an accountant. However, put it in your mind that having one is a goal! They can help maximize your deductions and with all that tedious stuff we don't like to mess with. Most of the time in the end they save you money.
Interested in our TPF Certification Course? Follow this link to learn more