As a mobile hairdresser, you likely have a lot of expenses to keep track of, from the cost of your products to the mileage you put on your car. Tracking these expenses can be overwhelming, but it’s crucial for ensuring that you are making a profit. Here are some tips for effectively tracking your travel expenses as a mobile hairdresser.
First, it’s important to keep accurate records of your car mileage. This includes keeping a log of every trip you take, including the date, destination, and purpose of the trip. This information can be used to calculate the cost of driving, which includes not just gas but also car depreciation, insurance, and maintenance. To make it easier to keep track of your mileage, you can use a mileage tracking app or device, which can automatically log your trips.
When calculating the cost of driving, you should also take into account the cost of fuel. Gas prices can fluctuate, so it’s important to keep track of how much you are spending on fuel each month. You can also use a fuel rewards credit card to earn cash back or points on your fuel purchases, which can help offset the cost of driving.
It’s also important to keep track of your time, as time is money. Keep a log of how long each job takes, and include any additional time you spend on tasks related to that job, such as travel time and preparation time. This will help you to accurately calculate your hourly rate and ensure that you are charging enough for your services.
When it comes to accounting for your expenses, it’s important to categorise them correctly. For example, expenses related to your car should be classified as transportation expenses, while expenses related to your products should be classified as supplies. This will make it easier to see how much you are spending in each category and make adjustments as needed.
Now, in terms of charging your customer, one important aspect is to set your prices based on your expenses, not just on what your competitors are charging. If you don’t charge enough to cover your expenses, you will not be profitable. Do a little research on your local market, and find out what other mobile hairdressers in your area are charging. Use this information as a starting point, but don’t be afraid to charge more if your expenses justify it. You can also offer package deals, or discounts for booking multiple appointments in order to increase your profits.
In summary, effective tracking of your travel expenses can help you to stay organised, stay within budget, and ensure that you are making a profit as a mobile hairdresser. By keeping accurate records of your mileage, fuel expenses, and time, and classifying your expenses correctly, you can get a better understanding of where your money is going and make informed decisions about pricing. Additionally, it’s important to set your prices based on your expenses, not just on what your competitors are charging, to ensure profitability.
It’s worth noting that you should always consult a tax professional for advice on how to correctly report your expenses as these rules and regulations change over time. They can also help you take advantage of deductions and other tax benefits available to mobile hairdressers.
