As a self-employed hairdresser, managing cash flow is essential for maintaining a sustainable and successful business. With fluctuating income and regular expenses, it’s vital to monitor the flow of money into and out of your business. This helps ensure you can cover costs, save for the future, and plan for growth.

What is Cash Flow?

Cash flow refers to the movement of money in and out of your business. It includes the income you earn from your bookings and the expenses you incur for supplies, rent, and other operational needs. Maintaining positive cash flow means ensuring that your incoming funds consistently exceed your outgoing expenses.

Key Strategies to Manage Cash Flow Effectively

1. Track Income Through FroHub Reporting FroHub’s reporting section allows you to track income generated from your bookings, giving you an up-to-date view of your earnings. Use this information to identify trends in your cash flow, such as peak booking periods or slower months, and plan accordingly.
2. Connect Accounting Software For a complete financial overview, connect your accounting software, such as Xero, with FroHub. This lets you combine your booking data with broader business finances, simplifying expense tracking, report generation, and tax management.
3. Build a Savings Buffer To prepare for slower months or unexpected expenses, set aside a percentage of your income during busy periods. FroHub’s Goals feature can help you set savings targets, so you can monitor your progress and stay motivated.
4. Plan for Tax Payments Taxes are an unavoidable part of running a business. Set aside a portion of your income for taxes regularly, based on your earnings tracked in FroHub. This ensures you’re prepared when it’s time to pay quarterly or annual tax bills.
5. Keep Personal and Business Finances Separate Use a dedicated business bank account to separate personal and business transactions. This simplifies your cash flow management and makes it easier to understand your business finances. FroHub enables you to connect your bank account, making it easier to view income trends and savings goals.
6. Reduce Unnecessary Expenses Regularly review your business expenses and look for areas to cut costs without compromising service quality. For instance, evaluate your supplier contracts or consider buying in bulk to reduce costs.

Managing cash flow as a self-employed hairdresser doesn’t have to be overwhelming. With tools FroHub’s reporting, you can stay on top of your finances and make informed decisions. By tracking income, planning for taxes, and building savings, you’ll set yourself up for long-term success.