If you're looking to start a hair salon, you won't need a lot of startup capital but the list of initial expenses can add up quickly. You could get a small loan from a bank or use personal funds to start your business to cover the initial expenses such as inventory, supplies and insurance. Some of these expenses occur only at the onset, others once each year and still other expenses happen every week.
Here's a list of some expenses you'll spend on when starting up:
You can deduct the cost of starting up your salon. You can also deduct expenses supplies and equipment as well as any other business related costs. It's a good idea to consult an accountant or tax professional to help you understand what is deductible, what isn't and how use Salon Accounting to organize all of it.
You will need to keep a business record of all expenses for your salon. Salon Accounting makes it easy to keep track of all the expenses you have in your small salon business and categorizes them for tax and other reporting purposes. You can even upload your receipt to keep track of your expenses, and ditch the shoebox.
This is important because the IRS requires you to prove you are running a tax-paying business, not just investing in one and deducting personal hair care costs. Establishing a business record for your salon will make this easier and help you out in the long run. It's also important to keep your personal and business accounts separate so the IRS can easily distinguish a personal vs business expense.
The following list of expenses are not a deduction as an expense to your business, don't track them in Salon Accounting!
This is a list of some of the most common startup expenses for a small hair salon. If you start renting, a new salon startup can established with little investment. It's important to know how to classify your expenses depending on whether they're personal or business related and what records need to be kept for tax purposes.
Can you think of other expenses that should be included? Let us know by reaching out to us on our social channels and continuing the conversation!
New to Salon Accounting? It's the perfect app to keep track of your expense data and receipts so you're organized when it comes time to salon taxes.