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Home   Help for Accountants   QuickBooks General Forum  
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04/19/2013 at 09:23AM PDT
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LukowCPA
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06/08/11 8:06am PDT

Accounting for Hair Salon

US QuickBooks Premier

What is the best way to set up a QB file for a hair salon that is organized as a two-member partnership that also has booth rentals for other stylists?  The two partners are stylists who want to track their individual sales as well as their cost of products used.  The salon has a substantial amount retail product sales, and they charge the other stylists for their use of the salon products.  The other stylists keep their service income receipts from cash and checks; it is not run through the business QB file.  However, all credit card payments are run through the business, and each stylists' share of the credit cards is used to pay their booth rentals and cost of products used.

I would appreciate any help or insight you might have for setting up the QB file to accurately track the activities of this salon.  Thank you--

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I would set up classes to track the activities.  You'd need a class for each partner, plus one for unallocated shop income/expenses (rent, utilities, etc.).  Make sure to assign a class to all transactions.  You can then divide up the unallocated expenses monthly based on percentage of sales, or whatever other agreement you have in place. 

Set up each lessee as a customer, and invoice them for their booth rentals, reimbursable expenses and products.  Apply each lessee's share of credit card receipts as payments on their receivable.

This is just a very basic outline, but it should help to get you started.

 

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