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bar pin - Gold and pavé diamond bar pin displaying estimated unit retail production, awarded at Seminar on Awards Night to Sales Directors who exceed all previous years’ estimated unit retail production (beginning at $300,000 and in $50,000 increments thereafter). beauty book - Brochure that pictures product lines and includes a suggested retail price list. Available as a Section 2 item on the Consultant order form.

Beauty Consultant, Consultant - See “Independent Beauty Consultant.”

Beauty Consultant Agreement - See “Independent Beauty Consultant Agreement.”

booking - Scheduling appointments to share Mary Kay® products.

branches - The five regional Mary Kay distribution centers in the United States that are responsible for shipping products to Beauty Consultants, processing orders and Agreements, and customer service activities. You’ll want to send your order to the branch designated for your state:

Business Tracking Register - A tool to help you keep track of your business expenses. You can learn how the Business Tracking Register works on the Career Essentials Audio Success Series, “Money Management” audiotape. You’ll find the original form in the Success Tools envelope and may make additional copies. Look at the example below which is described on the audiotape (keep in mind that this example is based on 6 percent sales tax; your sales tax rate may vary).

Example 1

Business Tracking Register

Month / Year April ’02 Monthly Budgeted Expenses $120
Date Reason Deposit Sales
(without tax)
Sales Tax Inventory
50%
Sales Aids
5%
Pref. Cust.
5%
Bus.Income
40%
  Balance Forward $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
4/20 Class sales $ 400.00 $ 24.00 $ 200.00 $ 20.00 $ 20.00 $ 160.00
  Total $ 400.00 $ 24.00 $ 200.00 $ 20.00 $ 20.00 $ 160.00

Let’s build on that example. The next week, April 27, class sales were $250 with sales tax of $15. To complete the entry, you would put:

  1. The date and reason for entering money in the Deposit column (you’ll want to include the reason you are moving money in or out of your business checking account).
  2. The sales tax ($15) in the Sales Tax column.
  3. $125, or 50%, in the Inventory column.
  4. $12.50, or 5%, in the Sales Aids column.
  5. $12.50, or 5%, in the Preferred Customer column.
  6. $100, or 40%, in the Business Income column.

Then you’ll total each column. Based on this example, here is what your register will look like:

Business Tracking Register

Month / Year April ’02 Monthly Budgeted Expenses $120
Date Reason Deposit Sales
(without tax)
Sales Tax Inventory
50%
Sales Aids
5%
Pref. Cust.
5%
Bus.Income
40%
  Balance Forward $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
4/20 Class sales $ 400.00 $ 24.00 $ 200.00 $ 20.00 $ 20.00 $ 160.00
  Total $ 400.00 $ 24.00 $ 200.00 $ 20.00 $ 20.00 $ 160.00
4/27 Class sales $ 250.00 $ 15.00 $ 125.00 $ 12.50 $ 12.50 $ 100.00
  Total $ 650.00 $ 39.00 $ 325.00 $ 32.50 $ 32.50 $ 260.00

Buying Inventory: Let’s look at what happens when you take money out of your business bank account to buy inventory. In Example 2, your total in the Inventory column (after entering the 4/27 class sales) is $325. If there were $400 in the Inventory column, you could get the 50 percent discount on product (since you would be purchasing $800 in suggested retail). If building up your inventory is one of your priorities, you could use some of the money from the Business Income column toward your inventory. That would look like this:

Business Tracking Register

Month / Year April ’02 Monthly Budgeted Expenses $120
Date Reason Deposit Sales
(without tax)
Sales Tax Inventory
50%
Sales Aids
5%
Pref. Cust.
5%
Bus.Income
40%
  Balance Forward $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
4/20 Class sales $ 400.00 $ 24.00 $ 200.00 $ 20.00 $ 20.00 $ 160.00
  Total $ 400.00 $ 24.00 $ 200.00 $ 20.00 $ 20.00 $ 160.00
4/27 Class sales $ 250.00 $ 15.00 $ 125.00 $ 12.50 $ 12.50 $ 100.00
  Total $ 650.00 $ 39.00 $ 325.00 $ 32.50 $ 32.50 $ 260.00
4/28 Purchase $400 Whsl. Inv. $ 0.00 –$ 39.00 –$ 325.00 $ 0 –$ 9.00 –$ 75.00
  Total $ 650.00 $ 0 $ 0 $ 32.50 $ 23.50 $ 185.00

With this example, you would subtract $75 from the Business Income column and $325 from the Inventory column to place a $400 wholesale Section 1 order. In doing so, you can buy your inventory at a 50 percent discount (see the Consultant order form for the current discount schedule).You will still have $185 in your Business Income column for monthly expenses.

Don’t forget, when you take money out to buy inventory, you must also take the appropriate amount out to pay sales tax. You pay sales tax on the suggested retail price of the inventory and the cost of sales aids. In this example, you must pay $48 ($800 suggested retail price x the sales tax rate of 6% = $48) in sales tax. Since there is only $39 in the Sales Tax column, subtract the additional amount needed which is $9 ($48 - $39 = $9) from the Preferred Customer column. The Preferred Customer column is overbudgeted (since you put 5 percent of all sales into this column but you only need to use it one time each quarter to sign your customers up for the Preferred Customer Program). You can use monies from this column for additional sales tax, the $3.50 call-in charge (if you place your order by telephone) and the $7.50* freight charge. Don’t forget to record these transactions in your Business Tracking Register.

* See the Consultant order form for tax and freight information for Alaska, Hawaii, Guam, Puerto Rico and the U.S. Virgin Islands.

As you probably noticed, by totaling the Business Tracking Register after every transaction, you keep a running total of what is in each column, and you will always know how much you have budgeted in each column for your business. You will also have a running total of your sales in the Sales column.

Each time you put money into or take money out of your business bank account you’ll want to record it on your Business Tracking Register. As you’re using the Business Tracking Register, you will want to determine what your goals are in your business. Which has more priority? Building inventory? Paying yourself? Once you make that decision, you’ll know how to spend and use the money you generate from your business. This tool can really help you improve your business savvy, and it is simple to use!

Helpful Hints For Using The Business Tracking Register:

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