We’re excited to announce that Kitomba Concessions is being enhanced! You’ll have the new and improved Concessions soon.
There’s some cool changes coming and you’ll need some time to get prepared. Here’s a guide on what to expect and how to get ready for the all new Kitomba Concessions.
An easier way to pay commission on Concessions
We’re making it easy for you to reward your staff for the work they’ve done, no matter the payment method your clients choose to use.
Soon Concessions will be accounted for in the same way Kitomba deals with Vouchers, using what’s called “accrual accounting”.
This way, revenue from Concessions is recognised at the time the client uses their Concession to pay for a service, ie. when you’ve done the work, making it much easier to reward your staff for their work.
Just like vouchers, Concessions you’ve sold that haven’t yet been redeemed will show in your reports, but the revenue from this won’t be added to your total sales figure until a client uses them.
Currently, Kitomba recognises the revenue from Concessions at the time they’re purchased, not when a client uses a Concession to pay for a service. This is called “cash accounting” and makes the way you pay commission on Concession payments complicated.
We think the new way will be better because:
- It’s more commonly used.
- It’s a better business predictor. For example, if you sell $3,000 worth of Concessions in May, the current method would show you’ve had a great month. However, you won’t show any income when the Concessions are redeemed over time, even though this is when you’ve done the work. With the new method, income for Concessions will show when you perform the services.
- It simplifies the way you pay commission on Concessions.
For more information about how Kitomba accounts for Vouchers and Concessions, check out our support guide.
Start preparing for Concessions
Your staffs commission
If you pay your staff commission for Concessions, it’s likely you’ll need to make a change to the way you do things. We know that our customers all use different methods for paying commission, but here’s some advice on how to get prepared:
- Determine how the new Concessions accounting method affects your commission payments.
- Chat to your staff about the change if it affects their commission payments. It may help to explain that this new method means they’ll always be rewarded after they provide a service no matter how or when it was paid for.
- Prepare and set up new processes to make the transition for commission payments easy. We suggest thinking about when will be the best time for you and your staff to put these changes in place. Remember, from the date when you receive the new Concessions feature, even your historical reports will be updated to reflect the new accounting method.
Your Concessions
There’s no need to do anything to the Concessions you already have set up – they’ll be available to sell as normal.
Your client’s Concessions
Your client’s won’t be affected by this change. They will still be able to redeem their unused Concessions as usual.
Keep an eye out for the upcoming Concessions release and more information about these additions!
FAQs
How will Concessions purchased and redeemed before this change be accounted for?
We’re updating all of your historical data and reports to account for Concessions in the new way. That way there’s no confusion around which method has been used when, whether it’s a Concession purchased before the release, or after.
If you’re recording the sale of a Concession and then a dollar value on the redemption of the concession, isn’t that double counting?
No, Concessions work like Vouchers. The initial sale of the Concession is recorded in your Kitomba but isn’t added into your total sales. It’s only when the Concession is redeemed that the revenue is added to your total sales.
I like the way concessions is currently accounted for and the way I reward my staff – I don’t want to change
Whilst Concessions sold will no longer be included in your total sales, the Concessions figure is still available in your reports. So if you add Concessions sold and total sales, then subtract the Concessions redeemed figure, you’ll have the “old” number according to the way Concessions were previously accounted for.
I pay my staff a commission on every treatment performed.
At present a commission dollar value is attached to the concession sale and for each treatment performed.
Can you advise how the new system will effect how I pay my staff.
Regards
Rob McGregor
Total Body Concept
Hi Rob,
This change shouldn’t affect how you’re paying your staff. The sale of a Concession is still recorded so you’ll still able to reward your staff with Commission for this.
The way it’ll work is when a treatment is performed, it will still be counted on a unit basis. The only difference is that it will now also have a dollar value assigned to it.
We’re more than happy to show you how this works! So please let us know if you want us to give you a call and talk you through it.
Please don`t change concessions to be like vouchers! Accounting for vouchers or concessions has to happen on the date the sale is made not used. If someone buys a voucher and never uses it (as does happen) your setup means it has never been recorded, putting sales figures and bookkeeping wrong. Plus if the voucher is bought in 1 tax year and is used in the next that will throw the books out as well.
By changing this you are adding work into my end of week / month / year, slowing me done and adding errors into my bookkeeping.
If you want to improve concessions, allow the ability for more fine tuning of the concession, allowing a concession to have adaptability for different clients with different needs. Ie a blowdry concessions that could be for 5, 6, 7 blowdry package.
Hi Anthony,
Thanks for your comment! You can still run your business as you currently do even with this change. It will add a small step to your process, however it’ll be consistent with the way that Vouchers work, so this should make your bookkeeping easier. We’re more than happy to give you a call and talk you through it – so please let us know if you’d like us to do so.
In terms of Concessions that are never used – we’re adding expiry dates to Concessions. This means you’ll be able to run a report that tells you which Concessions have expired and complete your bookkeeping to account for those.
You’re also able to create as many Concessions as you want so you can fine tune the required concession numbers to cater to your clients needs! It’s easy to sell them with the drop down at invoicing.
Let us know if you have any other questions or we can give you a call to help out!
Please make it so that concessions can be created and amended in k1!! I’m rarely at the clinic, and as I make all the decisions regarding sales etc., it would be very helpful if I could manage concessions in k1
Hi Leanne, yes you will be able to create and adjust things like price or quantity of Concessions in Kitomba One!