Bookkeeping 101 for Barbershops and Beauty Salons

These salon bookkeeping tips can streamline barber shop accounting, helping owners manage small business finance efficiently by tracking expenses, monitoring cash flow, and staying on top of tax obligations.

Running a barbershop or beauty salon means dealing with cash flow, employee payments, and inventory costs.

Here’s how to keep your books in order:

1. Use a Salon POS System

• Salon-specific tools like Square Appointments, Vagaro, or Fresha integrate with accounting software to track earnings.

2. Separate Chair Rentals from Business Income

• If you rent chairs to stylists, track rental income separately from service earnings.

3. Automate Payroll and Tips

• Pay employees on time using Gusto or QuickBooks Payroll to handle wages, taxes, and tip payouts.

4. Deduct Salon Expenses

• Write off costs for:

• Shampoo, hair color, styling tools

• Salon rent and utilities

• Marketing and branding

5. Track Cash and Digital Payments

• Use mobile payment systems like Zelle, Venmo, and Cash App but record all transactions in accounting software.

A well-managed bookkeeping system ensures your salon stays profitable and stress-free!