We have talked about tips in the past. And one of the major problems was the concept of tipping for those who are still making full minimum wage or above, they’re not earning the tipped wage like the waitress would at a restaurant.
However, post COVID most places are now accepting tips, no matter what, it’s become commonplace. It’s really been the change in our culture where you get a lot more tipping and people are being a little more generous because they know you’ve been through a lot.
You may want to reassess the tipping strategy if you are not using tips in your studio, remember that you do have to declare those on your payroll. I highly suggest not allowing the cash out of the drawer to account for the tips. And what we’re seeing now is that probably the most fair way to do it has come to a pooling method where the entire studio’s tips all go into a fund and they’re divided up based on hours, worked over each month.
So, just wanted to give you a little update on what we’re seeing in some of the latest trends in the industry. Please subscribe to our YouTube page and follow us on Facebook as well. Thank you very much. I’m Donna Bordeaux with PYOPAccounting.com.
Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.
