Salons

Salon Advisory and Tax Services

Experienced service providers ready to help your salon grow.

Our salon team shares your passion and is ready to help your business flourish. From income tax planning to entity selection, our industry experts will help steer you in the right direction.

Why do we do this: We love empowering business owners so they can understand their business and thrive on their own terms.

How do we do this:  We are a market leading firm working with salon owners utilizing our salon industry expertise, a great team, and robust technology to deliver exceptional client experience.

What do we do: We are industry experts helping salon owners with tax planning, financial advice, making business decisions, and preparing tax returns.

Our services

Boyum Barenscheer’s team of CPAs and consultants work collaboratively with our salon clients to address their operational, tax and accounting needs including:

  • Employee Retention Credit: We’ve helped more than 225 salons across the country calculate and file for ERC totaling over $45M of credits so far.
  • Tax Return Compliance
  • Shareholder Buyout Planning
  • Entity Selection
  • Retirement Plan Selection
  • Income Tax Planning
  • Management Company Set Up for Anyone With Two or More Salons/Business Entities

Trade Associations

FAQs

 
What are the guidelines for tip reporting?

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.

 
What is the difference between an employee and an independent contractor?

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.

 
How do I record gift cards in my salon?

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.

 
How should the owner of a salon be paid for their work behind the chair?

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.