Non-Accredited Cosmetology Schools
It All Starts With Good Books
Non-Accredited Cosmetology Schools
Build your school’s financial foundation with practical bookkeeping tips, streamlined accounting processes, and good practices that set you up for long-term growth and eventual accreditation.
Non-Accredited Schools
Accounting Practices
Basic Bookkeeping: Track income and expenses using simple accounting software (e.g., QuickBooks Online).
Accounting Method: Use cash or accrual accounting depending on the school’s size and complexity.
Revenue Segregation: Differentiate between tuition, fees, and other sources of income.
Expense Categorization: Properly classify operational costs (e.g., rent, supplies, salaries).
Non-Accredited Schools
Good Practices
Periodic Financial Review: Conduct quarterly reviews to analyze financial performance
Startup Cost Tracking: Document initial investments and setup costs for accurate tax reporting
Cash Flow Management: Regularly forecast cash flow to ensure operational stability.
Non-Accredited Schools
Simplified Controls
Check Signing or Transfers: Require dual signatures for checks or transfers over a certain amount..
Designate Tasks: Use a designated person to handle bookkeeping and another for reconciliations.
Basic Reconciliation: Monthly reconciliation of bank accounts to ensure accuracy..
Non-Accredited Schools
Policies and Procedures
Basic Financial Policies: Implement simple policies for tuition payments, refunds, and expense approvals.
Student Payment Tracking: Develop a system to track student payments to avoid revenue leakage.
Record Retention: Maintain all financial records for at least seven years..
Tax Compliance: Ensure timely filing of local, state, and federal tax returns.
Frequently Asked Questions
Q:
Why should we invest in bookkeeping if we’re not accredited?
Accurate bookkeeping helps you track your school’s financial health, manage cash flow, and avoid potential tax issues. It also lays the groundwork for accreditation if you choose to pursue it in the future, as accrediting bodies often require a history of well-maintained financial records.
Q:
What are the financial benefits of becoming an accredited school?
Accredited schools can offer federal student aid programs (e.g., Title IV funding), attract more students, and enhance their reputation in the industry. Strong financial practices as a non-accredited school can make the transition to accreditation smoother and more achievable.
Q:
How can we make the audit process easier for our school?
Implementing a robust accounting system like QuickBooks Online and integrating a student management system can help you track tuition payments, manage deferred revenue, and provide financial clarity. We can assist with setting up and maintaining these systems for your school.
Q:
What accounting practices should we follow as a non-accredited school?
It’s best to start with a clean financial foundation. This includes maintaining a well-organized chart of accounts, reconciling bank accounts monthly, properly categorizing revenue and expenses, and preparing basic financial statements like profit and loss reports and balance sheets. These practices will help you manage operations effectively and prepare for potential growth or accreditation.
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This website is dedicated to helping cosmetology schools thrive through proper financial management. Whether your school is accredited, non-accredited, or preparing for accreditation, maintaining accurate and compliant financial records is the key to sustainability and growth. The resources and information provided here are designed to simplify accounting, strengthen internal controls, and guide schools toward meeting their financial and accreditation goals. For personalized support, schedule a consultation today.
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