There is only one
bookkeeping business form in the entire pet grooming industry that
collects all the bookkeeping information, along with an easy way
to collect that information by types of pets, services and retail
sales breakdown. It's called the Manager's Daily Summary
Report of Sales and Services, and yes we have to fall
back again and give credit to its source, that venerable business
manual, From Problems to Profits. It
has been in use over 40 years. It's that perfect. They can
even be purchased online at MyGroomingBusiness.com or call 800-556-5131 in
the U.S., or 360-446-5348.
It only costs about
59 cents a day to use this marvelous form. Your bookkeeper will
love it too! It only takes a few minutes a day to fill out the
report. When you are done, attach any receipts for expenses paid
by cash and a cash register tape if applicable, and that's it.
Your few minutes of work filling out this form will save your
bookkeeper a substantial amount of time, and it should reduce your
bookkeeper's bill had you not filled out the form.
Sources for pet grooming
business forms are very limited, but what is available is very
good. First you find quick information at
Madson
Business Forms and you can also call
Barkleigh Productions. You can find their telephone number in
PetGroomer.com Buyer's Guide
in the Publishers Category.
Keep in mind that most
software eliminates or reduces the need for bookkeeping-oriented
software. However, no pet grooming software we have reviewed to
date gives you the benefit of the Madson's Manager's Daily Summary
Report of Sales and Services bookkeeping business mentioned above.
Professional
Assistance
A good, cost-effective
strategy is to have both a bookkeeper and Certified Public
Accountant (CPA). The bookkeeper completes your monthly
"books," including financial statements and support
documents. Then, deliver the materials prepared by your bookkeeper
to your CPA on at least a quarterly basis. The CPA can help you to
determine if you need to make estimated tax payments to various
tax authorities, and provide additional commentary on your success
to reach your financial objectives. Further, the CPA will also use
the bookkeeper's materials to prepare formal tax statements, for
both you and the business. As you prosper, your CPA is a vital
contact. By maintaining your financial records as prepared by your
professionals, you will be better ready to acquire loans and make
important purchases of property and to make wiser investments.
Projecting
Pet Groomer Wages
One of the most popular
questions asked by new career seekers considering the pet grooming
industry is how to project what their wages will be as a pet
grooming employee. Of course, the self-employed pet groomer
tallies their income from providing grooming services and then
deducts their costs of operating their business, and what is left
over is potential income from self-employment. Pet groomer
employees look to their employer instead for a compensation
arrangement.
Pet grooming business
owners, as well as veterinarians, kennels, and retail stores with
grooming, most often look to "commission based" wages
for their pet groomer employees. Indeed, pet groomers working for
any of these businesses are legally employees and not
"independent contractors." There is a common
misconception that if you are paid by commission, you are
automatically an "independent contractor." Not true.
If the business owner
asks you to work on-site and you cannot take the work home with
you, and you work hours the owner prescribes grooming the
business' client-pets, that alone is enough to make you an
employee and not an independent contractor, even if you supply
your own tools. If you do not believe this fact, ask the IRS for
form SS#8. Answer its questions about your working relationship
with the owner, and the IRS will advice you whether you are an
employee or independent contractor. We've done several, and every
determination was "employee." If you were to lease or
rent space to operate a pet grooming department within a
veterinarian clinic, store or kennel, you may get an independent
contractor determination.
Commissions are the
norm, however, efficiency experts within the industry have proven
that it is not the most profitable method for calculating wages.
We suggest you read Has the Time Come to
Eliminate Commission Based Wages? in this site's Articles
section. Regardless, you need to understand what it means to be
paid by commission.
Today, most pet groomers
being paid by commission receive in wages 50% to 60% of the total
service for each pet they groom. For example, if a Miniature
Poodle service fee is $30.00, the pet groomer paid a 50%
commission would receive $15.00 in wages for grooming the pet. The
big question here is "Who does the pre-bath brush and comb,
bath and fluff-drying? The groomer? Or does the owner
"provide" a bather? It makes a major difference since
you must allow for an average of 30 minutes for the bathing
portion of the overall grooming. Most of the time, a groomer paid
a 50% to 60% commission does the pet from start to finish,
everything. However, some pet grooming business owners do provide
a bather, typically as a "perk." Yet again, there are
some owners that pay 50% to 60% and offer to have a bather
employee do your bathing duties as an option for a fee, averaging
around $3.00 to $4.00 per bath. The point is all owners paying by
commission pay full-charge pet groomers 50% to 60% of the total
service fee for each pet they groom, but bathing arrangements vary
greatly.
In projecting your
wages, you need to know how many days-a-week you will be employed,
what the average service fee is and how many pets are you are
capable of full-charge grooming. Often pet groomers just out of
school can only do 4 pets from start to finish in an 8 hour work
day where the pets require pre-bathing work, bathing and drying,
pre-clipping and finish trimming. Ideally, graduates will improve
their productivity to an average of 7 pets per workday.
Example. Average service
fee: $30. Groomer capable of grooming 6 pets start-to-finish in 8
hours. Groomer works 5 days-a-week. Commission is 50% of total
service fee.
The groomer generates
gross income for the business of 6 pets per day at an average
service fee of $30, or $180 a day. The groomer does this 5 days a
week for a total of $900 in gross income. The owner paying 50%
commission would then allocated $450 as the groomer's wages for
the 5 days. From this amount the owner must withhold payroll taxes
as with any other paycheck.
What is important for
career seekers to consider is WHO they are working for? Is the
business large enough with a stable clientele to consistently
provide you with your quota throughout the year? This level of
stability is often in question, especially in areas where winters
are harsh and pet owners may visit their groomers less often. For
this reason we have always found that career seekers come around
to appreciate good steady salaries instead, where they are capable
of maintain a regular household budget. Since commissions are the
norm though, you must find a job in a busy and growing business if
you desire maximum and stable income.
If you are an owner with
an interest in hourly and salary wages instead of paying by
commission, we suggest a consultation with our consultants. We
have helped hundreds make the switch from commissions to salaries, dramatically increasing
their net income, and without lowering groomer pay rates,
quality or humane pet care. We've never paid
commissions in 40 years, and senior groomers stay with us as
long as 10 years.