Dear Dangerous in Love with Finance,
I’ve been a licensed massage therapist for over a decade, and last year, I finally took the plunge to fulfill my dream of owning my own massage spa. I was beyond excited to get things up and running. My clients were loyal, I had the skills, and the massage spa was my vision that came to life. But somewhere along the way, I overlooked one small but critical detail: opening a business checking account.
At first, I thought it wouldn’t be a big deal. I used my personal bank account for spa expenses, planning to open a business account “soon.” But “soon” turned into weeks, which turned into months, and before I knew it, the end of the year was here.
When tax time came, my tax accountant asked for my financial statements. That’s when the nightmare began. I couldn’t remember which purchases were personal and which were for the spa. Was that Amazon order for massage oils, or was it for household items? What about that deposit—was it a client payment or a gift from a relative?
I spent two full weeks sorting through receipts, bank statements, and credit card transactions trying to make sense of it all. It completely derailed my plans to take a relaxing vacation after the busy holiday season.
It wasn’t until I finished the ordeal that I realized just how much stress, time, and energy I had wasted by not setting up my spa’s finances correctly from the start. I also learned that mixing personal and business expenses (what the IRS calls “co-mingling funds”) could have put my entire business in jeopardy.
I’m sharing my story because I know I’m not alone in this. Many small business owners—especially massage therapists and spa owners—are so focused on serving clients that they overlook the critical importance of proper accounting and bookkeeping for massage therapists.
How can help new massage therapists and spa owners avoid making the same mistake I did?
Signed,
A massage therapist, who wants to “pay it forward”.
Dear Pay it Forward ,
First, thank you for sharing your story. It’s relatable and an important lesson for new business owners. I could feel all your emotions as I read your letter.
Many entrepreneurs, especially in service industries like massage therapy, focus on their craft and neglect their financial foundation. You’re not alone, and your experience will help others avoid the same pitfalls.
Why Separate Finances Matter for Massage Therapists:
When you open a business, you create a separate legal entity. Even as a sole proprietor, the IRS distinguishes between you and your business. Think of your business as its own “person” needing its own checking account, savings account, and credit card. This is crucial for accounting and bookkeeping for massage therapists.
Getting Started with Business Finances:
Your story highlights the importance of sound financial systems. Prioritizing accounting and bookkeeping for massage therapists prevents future headaches.
Again I thank you. Massage therapists that are reading this post thank you.
With much love,
Mindful Financial Tips:
Running a massage therapy spa can be rewarding, but managing your finances thoughtfully is essential for long-term success. Start by creating a clear boundary between personal and business finances. Open a dedicated business checking account, savings account, and credit card. This simple step makes it easier to track income and expenses, avoid co-mingling funds, and maintain a professional image.
Don’t let accounting and bookkeeping headaches hold your massage therapy business back! Healthy Bodies of Finance specializes in accounting and bookkeeping for massage therapists, spa owners, and wellness professionals. Whether you’re just starting out or looking to get organized, we’ll help you set up your business for success with tailored financial solutions.
Visit us at Healthy Bodies of Finance to schedule your free consultation today! Let us help you eliminate stress, save time, and focus on growing your business. Your spa deserves a healthy financial foundation—contact us now!
This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax and accounting situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney or advisor regarding your particular facts and circumstances. Healthy Bodies of Finance is an accounting firm that specializes in working with health and wellness providers. We provide monthly accounting & bookkeeping services and financial education. For more information on our specialized services for health and wellness providers please contact us at [email protected]