Your salon business is a business. And this time of year, it’s important to know which business expenses can save you money when filing your taxes.
Keeping detailed records of any and all payments you made under your business is critical. Keep track of what salon expenses — utilities, products and other supplies — are included in your booth rental or added to any amount you pay to the salon.
These records will save you loads of time and money at tax time. Here are some other expenses you may be able to deduct:
This is often a stylist’s biggest expense, so you’ll be happy to know that you can often write off the entire amount you pay the salon in booth rental. If you pay additional salon expenses like utilities, water or salon rent, you can likely deduct these, as well.
Additional equipment and supplies
If you contribute a portion of your income to other salon expenses besides utilities and overhead, you may deduct these separately on the Schedule C. These include expenses like robes, towels, gowns and other equipment.
If you use your cell phone to schedule your own appointments, you may be able to deduct the cost of your monthly bill. Keep receipts for everything down to your business cards and bobby pins — it all adds up at tax time.
Educational/professional development costs
You want to stay on top of new industry developments and trends, but trade shows and classes can add up. Registration fees, travel, lodging, and even meals purchased while pursuing professional development opportunities can be deducted. And the cherry on top: Oftentimes, your license and insurance fees can be included in these deductions.
It may seem tedious to keep such detailed accounts of your many business expenses, but doing so will save you many times over when it’s time to settle up with Uncle Sam.
Use technology to ease the pain. Some apps are designed to automatically categorize your expenses — especially when you use a separate bank account (always recommended) to handle your business operations. Create a simple system that works for you. You’ll be glad you did.
-Easy for you, Easy to love-