Issue link: https://www.ascpskindeepdigital.com/i/526887
Create your free business website! www.ascpskincare.com 31 2 Gross income = total revenue earned Net income = total revenue left after expenses are deducted Your taxes are calculated on your net income figure, so keep track of all your expenses; they reduce the amount of tax you owe! LS: Are you planning for your license renewal, ASCP membership renewal, taxes, or other expenses? Planning and saving aren't the most popular words in the English language, but they are two of the most important. For example, if you give 28 facials and 12 waxes a week, ASCP membership costs a few cents per treatment. Your taxes may cost up to $10 per treatment, depending on your tax bracket. Do you put those away after every appointment, or every week, or ever? One of my favorite sayings is, "Fail to plan, and you plan to fail." Don't fail—plan! TRUE or FALSE: You know what expenses you have coming up for your business, and you have set aside money to pay them. An answer of "True" is worth 5 points; "False" or "Huh?" is worth 0 points. 3 What is your quarterly estimated tax payment amount, and when is the next one due? You get 5 points for knowing/having an estimated amount, 2 more points if you know when the next one is due, and 0 points for answering, "What are taxes?" KC: The general rule is that if you wrote a check to the Internal Revenue Service (IRS) on April 15 (that is, you didn't get a refund or break even) and expect to owe more than $1,000 in tax for the current year, you are required to pay quarterly estimated tax on your anticipated revenue. The goal is to pay enough throughout the year so that you break even come tax time: you don't own Uncle Sam any money, and he doesn't owe you any. Trust me: these deadlines can sneak up on you and are panic-inducing if you're not prepared! Implement a good reminder system and set money aside each month so you're able to make your payment on time. Estimated tax payments are due on April 15, June 16, September 15, and January 15, but always check the IRS website for current information. 4 Learn more about quarterly estimated tax payments and calculate yours using the Estimated Tax Worksheet at www.irs.gov/pub/irs-pdf/ f1040es.pdf. Was your gross income last month higher or lower than the month before? An answer of either "Yes" or "No" is worth 5 points; "I don't know" or "What's so gross about my income" are worth 0 points. Kristin Coverly: Gross income is the total revenue you earn before any expenses or taxes are deducted. It's important to track how this income fluctuates month to month. An isolated one-month decrease is one thing, but a continued decline is an oversized red flag that something needs to change. Put your Sherlock Holmes hat on and investigate the cause of the decrease: is your overall number of services down, is the amount you're receiving per service down (increased number of discounts, decreased number of visits or add-ons), or both? Once you determine the cause of the decrease, you can create a plan of action. It's probably time to start a new marketing push, reach out to clients who haven't booked in a while, promote more frequent series purchases, or add something new like a seasonal treatment. points points points