At Bench, we stay on top of your cosmetics store's bookkeeping, providing regular updates. Got urgent financial queries that can't be postponed? Trust us to respond within one business day or less.
With Bench Accounting, you're gaining the power to streamline data inputs from leading providers, reducing common errors. We form partnerships with key merchants such as Gusto, Stripe, Shopify, and Square—ensuring your financials for your cosmetic store are consistently precise.
Say goodbye to confusing invoices and tedious manual record-keeping—we automate inputs directly from your linked accounts. For cosmetics stores, our tailored service provides insights through one central dashboard, allowing you to easily understand the financial health of your store and make strategic business decisions.
DR. BUKKY KOLAWOLE
Inventory management in a cosmetics store comes with a few unique accounting considerations. Firstly, a system needs to be in place accounting for the large range of products typically carried in such stores. Each item has its own cost and selling price which must be accurately documented.
Secondly, considering the perishability of certain cosmetic products, an important accounting consideration is appropriate costing methods for inventory that help account for expired and unsold items.
Thirdly, due to frequent changes in trends and tastes in the cosmetics industry, obsolescence of inventory is a particular area of concern. Inventory write-offs for obsolete inventory are fairly common and need to be carefully documented and tracked.
Lastly, in an industry like cosmetics, returns can be a frequent occurrence. Accounting for these returns and correctly updating the inventory is significant to maintain reliable financial records.
Having skilled bookkeepers familiar with these unique challenges can make the process of managing your cosmetics store’s finances significantly easier and more accurate.
In bookkeeping for a cosmetics store, unsold and expired products are typically accounted for as a loss. This involves categorizing these products as "Shrinkage" or "Loss" and writing off their retail value from the inventory. When calculated properly, they can be used as tax deductions, turning a disadvantage into a potential advantage. However, it's crucial to maintain stringent stock control procedures to minimize these losses. Each procedural step should be recorded carefully to provide an accurate understanding of the financial status of the business. It is recommended to engage with a professional accountant or bookkeeper to help manage this process efficiently.
As a cosmetics store owner, there are few unique tax considerations you should be aware of for your year-end financials. First, keep in mind that any expenses directly related to your business, such as ingredients or machinery for making cosmetics, can typically be deducted from your taxable income.
Additionally, if you own a physical store, you may also qualify for deductions on your property taxes or rent as well as utility costs. It's also worth noting that depending on the scale, promotional expenses like advertising and product giveaways could also be tax deductible.
An important and often overlooked category is the cost of goods sold. You must account for any inventory you have at the end of the year as it can significantly impact your tax obligations.
Given the complexities of business taxation, it's recommended to work with an experienced bookkeeper or tax professional who can help navigate the nuances specific to your situation.
Nope! All bookkeeping is completed in-house.
Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.
We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.