January 15, 2020

Preparing For Tax Season

Filing for taxes as a small business owner is not easy and can feel overwhelming. We recommend having a tax consultant/accountant help you to ensure you are doing this correctly and get all of the benefits of your tax deductions. We’ve outlined a list of deductions you may be able to use for your Salon Suite business. The most important thing to remember is that because you are a sole proprietor/business owner, you can deduct many of your business expenses. Make sure you head on over to the IRS website to research any new tax changes since last year. 
  1. Products, tools, equipment and supplies. Nearly all of the things you buy for your Salon Suite may qualify as a tax deduction. This includes furniture, tools, supplies, products, décor, etc. Make sure you are keeping track of your receipts.  HELPFUL TIP: Have one business credit card for ALL of your business expenses. Do not put anything else on the card unless it is for your business. This way, it is easy to keep track and all you have to do is hand over your credit card statements to tax consultant.
  2. Education. Continuing your education makes you a better stylist and salon owner. Any expenses paid for your education as long as it is helping to improve your skill in your trade or business, you can use as a tax deduction. Keep track of the money you spend on classes and training fees. You can also keep track of any other related expenses like class supplies and books. You may also be  able to deduct travel costs for any conferences attended.
  3. Marketing and Advertising. Marketing and advertising materials such as business cards, flyers, Facebook ads, rack cards, website hosting fees, graphic design payments for your logo and any other expenses are usually deductible as long as they are used to promote your Salon Suite business.
  4. General Expenses. Any cleaning expenses, office expenses, office supplies, etc. As long as it is for your business, these are generally allowed as tax deductions.
  5. Charity/Donations. If you participated in the free back to school haircuts,St. Jude Suite Relief efforts, or had a day where a certain percentage of sales goes to charity, donated any supplies to a local shelter, you can write them off as a tax deduction. Make sure you have your paperwork in order and/or have receipts for these.
  6. Business Insurance & Rent.  Insurance intended to protect your business (examples include  fire, theft, flood, property, malpractice, errors and omission, general liability, malpractice, workers’ compensation). Rent or lease payments on items that aren’t vehicles or equipment ( office or land rent), including any government taxes on those items can be used as well.
  7. Licenses. Your business and cosmetology license fees are also a deduction if you renewed or received your license in 2019.

One of the many benefits of being a Suite Elite Member with MY SALON Suite or Salon Plaza is the partnership with Square. If you have been using Square, you are one step ahead as it calculates all of your sales for services and retail. If you have not been using Square, this is a great time to start! Make sure in 2020, you are staying organized!

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