Industry Expertise

Salon Accounting & Tax Advisors

Your salon’s growth, our expertise

Smart accounting and advisory services for growing salons.

Running a salon is more than providing great services that make people feel and look great. While doing hair is certainly the heartbeat of the business, it’s important not to forget about what drives the bottom line. Often, owners get so involved in the day-to-day operations it leaves little time to review financial reports, cash flow forecasts and tax projections. When financial issues arise such as inconsistent cash flow, increasing operating costs pricing issues, it’s essential to have access to timely and accurate financial information to help drive decision making. Whether it’s a tax issues, cash flow concern, or a compliance matter, we can help navigate the issue. In fact, our team members provide the tax and accounting foundation needed to help salon owners make sense of the numbers and make smart growth decisions.

Boyum Barenscheer CPAs and Business Advisors works with independent and franchised beauty salons, waxing and med spas, that seek proactive guidance to drive growth. We work with a variety of companies including employee-based salons, hybrid models, multi-location, salon groups and those planning for expansion/succession. Salon owners work with us because of our industry experience, advisory-leading mindset and our straightforward communication style. Our services are optimal for those looking to go beyond basic compliance with deeper financial insights that can help drive growth. Due to this approach, those seeking just a tax return are likely not a good fit with our service model.

Now is the time to take a fresh look at your situation and determine how you can benefit from transitioning to an advisory driven salon team. Whether you are a single location independent or are a franchisee with multiple locations, we can help. Find out more about our service packages and identify the one which is right for you.

Salon Advisory Tier Information

See our service tiers for salon tax and financial planning.

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Salon Advisory Specialists

Frequently Asked Questions

The IRS guidelines require you to collect information about tips and include those in the W-2s for employees. Both cash and credit card tips should be collected regularly and paid out to the employees but also reported as part of their wages.  The salon owner bears the responsibility to ask employees to report their tips and then properly record those as part of the payroll system each pay period.

For the salon industry there are two common models, the employee model and the booth renter model.  The employees receive W-2 wages and the service providers will typically be paid through commissions while the front desk workers would be paid hourly.  A booth renter is an independent contractor who rents a space from the salon owner.  The booth renter and salon owner have a relationship just like a landlord where rent is collected each month and the booth renter is free to operate how they desire.

Gift cards are recorded as a liability on the balance sheet when they are sold.  It is wise to set this money aside so that you can service the gift cards when they are redeemed.  Gift cards do not have an expiration date, but for tax purposes the gift cards become income to the salon after 1 year so keeping track of the gift card liability is very important.

Having a strategy for owner compensation is a key to a thriving salon company.  Whether the owner works behind the chair or not, paying the owner or multiple owners effectively can generate huge tax savings.  Every situation is different, but being strategic and intentional about owner compensation is a great way to maximize the return on investment for a salon owner.

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We are a full-service Twin Cities CPA and advisory firm providing proactive tax, audit, and outsourced accounting services to help individuals, nonprofits and businesses achieve long-term success.

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3050 Metro Drive, Suite 200
Bloomington, MN 55425

952-854-4244