Pet Pros, It’s Time to Get Real About Your Finances
Mastering finances in the pet industry isn’t just about crunching numbers; it’s about leveling up your professionalism and setting the stage for growth in a rapidly changing world. If you’re still clinging to pencil and paper and simple spreadsheets, you’re practically living in the Stone Age. Modern financial tools aren’t just a nice-to-have—they’re your new best friends. Every dollar counts, and every decision you make shapes the future of your business. The more you evolve, the more our entire industry reaps the rewards of higher standards and professionalism.
The first step is ditching outdated methods and embracing financial software that simplifies tracking and improves accuracy. QuickBooks, Wave, or FreshBooks provide powerful features, including automatic bank syncing and customizable reporting. These tools make managing your income and expenses easier, helping you focus on growing your business.
Setting up your chosen software is simple. Create an account, input your business details, and link your bank accounts to automate transactions. This small step eliminates the risk of errors and saves time, allowing you to focus on what matters most—serving your clients and their pets.
Understanding and tracking your Cost of Goods Sold (COGS) is vital for knowing where your money is going. COGS includes all direct costs of providing your services, from supplies to labor and operational expenses. For example, groomers should track the costs of shampoos, towels, and equipment maintenance (just a few of the many items you need to get your COGS, which is your grooming price). Trainers and sitters should include treats, leashes, and cleaning supplies. By logging these costs in your financial software, you gain clarity on your true profit margins.
If you handle in-person payments, a Point of Sale (POS) system is your best friend. Modern POS tools like Square or Stripe POS streamline transactions and integrate seamlessly with financial software, providing real-time data on sales and inventory. This integration reduces manual work and ensures your records are always accurate. Many of the software also offered their own POS for a one-stop shop. You may even get discounts for staying with one system for everything.
Consistency is the backbone of financial success. Whether it’s reviewing transactions weekly, reconciling accounts monthly, or analyzing cash flow quarterly, staying on top of your numbers ensures there are no surprises. Modern financial tools help automate these tasks, but the key is regular maintenance to keep your finances in check.
As you grow, reporting becomes essential. Generate profit and loss statements, balance sheets, and tax summaries to understand your financial health and prepare for your future. Share these reports with your accountant or bookkeeper to ensure you’re maximizing your potential and staying compliant.
And let me say this loud and clear: if you’re still a cash-or-checks-only business, it’s time to join the modern age. That way of operating is as dated as relying on pencil and paper. And if you’re not reviewing your profit and loss statements or cash flow regularly, ask yourself this: how do you really know what your business is doing? Especially when you’re still turning to Unknown Facebook "friends" asking, "How much would you charge for this dog?" STOP THAT!!! It’s time to know your own value, understand your business costs, and set your prices accordingly. Elevating your business starts with knowing your worth and running your finances like a pro, not what So And SO down the road is changing.