Proper money management is essential to any business.

We suggest two separate accounts for your Mary Kay business.  The first one is a savings account (inventory account), and the second one is a checking account (profit account).  Keep your business accounts separate from your personal accounts.  On your checks you may want to put Cosmetic Account or Special Account.  Please dont use the words Mary Kay Cosmetics.

These accounts work as follows:

At the end of each week, deposit all your retail sales plus tax in the checking account.  Multiply this figure times 60% to cover the cost of inventory, hostess credit, tax and literature.  This 60% goes into savings.

Now subtract the above figure from the total that you deposited.  This is your gross profit figure.  The money in the checking account is for:

1. Paying yourself
2. Paying your loan payment
3. Covering the cost of any hostess contests workshop fees.
4. Covering the cost of hostess gifts bought from any outside source.

As long as you work your monies like mentioned above, you will always have a sound business.  Rotate your monies between the two accounts.  When your shelves are empty, youll have money in savings with which to order.  When your savings is low, youll have inventory on your shelf.  This is called your business cash flow.

As inventory is sold, the money to replace that inventory is put in savings.  When inventory is reordered with savings, your stock on the shelf is good.  Any good business needs capital, inventory and work to continue to operate.  With this method, youll always have plenty of capital to order with when necessary and plenty of merchandise on your shelf.  The secret is always put 60% of your Total Sales plus Tax in the savings.  Keep your business basis and be true to your inventory account.

DATEBOOK Write down your mileage and expenses daily in your datebook.  Record-keeping is never difficult if kept current!

RECEIPTS Ask for receipts for all tax-deductible expenses.  Study your tax guide for these expenses.

WEEKLY ACCOMPLISHMENT SHEETS Complete these every week for an accurate summary of your activity, income, and e4xpenses.  Send a copy to your director every week.  These are important to your success!

BOOKKEEPING ENVELOPES Set up 24 large envelopes for expenses and income each month.

INCOME 12 envelopes (January December)

            All sales slips for the month are placed here along with Weekly Accomplishment Sheets

            Dovetail fees are kept here.

            Recruiting bonus print-outs are kept here.

EXPENSES 12 envelopes (January December)

            All receipts for business expenses are kept here.

            All wholesale orders are kept here.

At the end of the month, total each category on the front of the envelope.  At the end of the year, total the 12 income envelopes and your income for the year is complete.  Total the expense envelope and you are ready to visit the accountant.

SWING INTO ACTION!