quick question, when a hair dresser uses shampoo and hair extensions for a customer would this be classed as an expense or material??????
Another thought, would hairdressers hold stock as such? like for example if they had shampoo stocks would that be classed as stock or would that be an expense.
Im starting to feel a bit confused now!!!
-- Edited by lor on Monday 12th of October 2009 07:11:24 PM
I would class them as purchases and also therefore stock as they are used directly to produce a sale.
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I have quite a few hairdresser clients. What I do is class the colours, shampoos, etc as purchases, but some hairdressers buy shampoo etc specifically for selling on, therefore I would class these as stock. Hope this helps
ok I will double check with the client but i think as she doesnt own the salon, the products are shampoo used on the custs hair, plus hair extensions used on the hair for specific customers, i wouldnt of thought that she would be holding stock for sale but i will double check therefore if this is the case it would be classed as purchases....i believe
No Stock accounted for at all????? -- Edited by lor on Wednesday 14th of October 2009 06:52:40 AM
-- Edited by lor on Wednesday 14th of October 2009 07:30:01 AM
to keep you updated she buys the products (shampoo and conditioner) and uses them on her customer, when she does the hair extensions she normally gives the client shampoo and conditioner as well as part of her service, people can also come off the street to buy the shampoo and conditioner if they wish.
So she mainly stocks for when she does the hair extensions for her customer so should a stock take be done on this occasion, is it necessary?
I look forward to your responses.............................
-- Edited by lor on Wednesday 14th of October 2009 11:27:58 AM
to keep you updated she buys the products (shampoo and conditioner) and uses them on her customer, when she does the hair extensions she normally gives the client shampoo and conditioner as well as part of her service, people can also come off the street to buy the shampoo and conditioner if they wish.
So she mainly stocks for when she does the hair extensions for her customer so should a stock take be done on this occasion, is it necessary?
I look forward to your responses.............................
PS. what I am really asking, is it necessary to account for the c/stock as well as the purchases - there won't be an o/stock balance as she started self-employment not long after the tax year began.
thank you in advance for your help!!!!
-- Edited by lor on Wednesday 14th of October 2009 11:27:58 AM
-- Edited by lor on Wednesday 14th of October 2009 11:33:47 AM
sorry got a bit carried away with posting! whoops!, but still stuck on the issue none the less!!!!!
my head is spinning, also I would be asking for a stock count as at 5th april 09 which is a while ago! I don't quite know what to do!!!!!!! aarrrggghhh!!!
-- Edited by lor on Wednesday 14th of October 2009 11:49:44 AM
I think to keep this right you really need to do a stock check as of the end of year date. Your client should have an idea of the amount of stock held and she would know for future years that this would be required.
Are you in the process of preparing the end of year accounts. Is this the first year of business or are there accounts from previous years.
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thank for your reply, it is the client's 1st yr trading, I will ask the client what the stock was at year end, and then like you have said she will know for future reference.
I am currently doing the year end accounts at the mo' and I want to do it correctly, hence all the silly questions!
Stock will be valued at lower cost or net realisable value! so I think it will be best for her to value at cost as that would be lower than the net relisable value as there would be a mark - I getting the hang of it - my college days are coming bk lol although it wasn't that long ago - now I'm just waffling!
Thank you lots to learn (I also have lots to learn!)
-- Edited by lor on Thursday 15th of October 2009 08:17:39 PM
Sometimes you can't see the wood for the trees. Been there so many times. The clients first year trading is always the worst though as you are setting out all the parameters. Next year will be a doddle!
Good luck with it!
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
