Nature of the trade

Prime records

A hairdressing salon might keep some or all of the following business records;

• appointment book
• individual client records; these might include details of each regular client's name, address, hair type and special needs, as well as historical information on the types of treatment (for example colouring) received
• tariff records (details of current and past tariff structure)
• franchise records, including a copy of the agreement (or contract) and details of transactions between the franchisor and franchisee (a salon might be either of these)
• wages records
• stylists' commission slips (although these are not normally kept for longer than a few weeks or so)
• details of any 'rent a chair' agreements (including, for example, a record of rent payments received from freelance stylists)
• till rolls
• purchase invoices and suppliers' account statements
• VAT records (although only just over 25% of all hairdressing businesses are registered for VAT)
• cash book/sales ledger
• petty cash book
• stock records (if a large amount of stock is held)

Hairdressers who are talented stylists but have little business knowledge may see no need for thorough record keeping. However, self-employed tax payers are obliged to keep for six years the business records which support the information provided on their tax returns.