If you’ve been following my posts for a while, you’ll know I always recommend to Makeup Artists that you treat your makeup artist business like a BUSINESS, and it will pay you like a business. If you don’t, it just becomes an expensive hobby.
At this time of year, there are a few things you can do to maximise your business expenses for the end of financial year, (and minimise the tax you pay).
DISCLAIMER: I am not an accountant, or a tax agent, so I am not qualified to give you tax advice. I do recommend you seek the advice of a qualified, registered tax professional to discuss your business. Any tips presented here are just general in nature and your personal circumstances may differ.
Take advantage of EOFY Sales. Our favourite makeup stores (on-line and shopfronts) have some great bargains at End of Financial Year. This is a great time to re-stock your kit, buy new products, and even stock up on disposables. Anything you buy for your kit is a business expense, so keep all your receipts! (When I buy tissues, cotton tips, cotton rounds, makeup wipes etc at the supermarket I put them on a separate receipt at the cash register.)
And its not just products, this is a great time to book in for upcoming expos and Masterclasses. Due to Covid-19 some of the big expos have been postponed, but some have gone online. Check out your favourite educators, do they have online classes you can take? How about doing a one-on-one over zoom?
- Fill your car with Petrol – a small thing, but you’re going to need to do it anyway, so get it done before June 30th! If you are a mobile Makeup Artist, you may be eligible to claim a portion of the costs of running your car as a business expense. You will need to keep a log-book (you can either get one from the Newsagent if you’re old school and like to use a pen, OR there are some great Apps that record it for you) for 13 weeks, and then determine the percentage of your travel that is business related. (Hint: do this at a busy time of year!)
- Contribute to your Superannuation (Retirement plan) – now this may be something you’ve not really thought about, especially if you’re only in your 20s or 30s. But let me tell you, from personal experience (!!) one day you’re 28 and the next day you wake up and you’re in your 50s… It’s a fact that many of us will not have enough money to fund our retirement, and this is even worse for us as women (who often take time away from employment to raise a family) and freelancers, who are responsible for our own retirement fund. It’s a primary principle of wealth- creation that you should “pay yourself first” and save a portion of everything you earn BEFORE you pay all your other bills and expenses. Here in Australia, there are definite tax advantages to making personal contributions to your Superannuation, and depending on your circumstances, you may even find that the government pays a co-contribution. Again, check with your accountant or tax agent to find out about YOUR personal situation.
- Get your accounts in order, and make an appointment with your tax agent. If you’ve just chucked all your receipts in a shoe box, make a commitment now to be more organised in the new Financial Year. Keeping accurate records of your income and expenses is really important in running your business like a business, and you’ll know where you are at any particular time (and remember, as you approach $75K in turnover for the financial year, you may be required to register for GST). There are a number of different software programs you can use to record your income and expenses, or, you can simply use an Excel spreadsheet (which is what I do).
I hope this blog has helped you with getting your business ready for End of Financial Year. If you’re unsure about getting your accounts in order, check out the Makeup Business Course
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Kingsford Terrace Retirement Village (hair & makeup by Sue McLaurin)