FAQ – Bookkeeping Services for Salons

Salon bookkeeping is the process of tracking income, expenses, payroll, product sales, and service revenue. It’s essential for managing cash flow, filing taxes accurately, and making smart business decisions.

Yes. A professional bookkeeper ensures your financials are accurate, helps avoid tax penalties, and saves you time—especially during busy seasons.

Most salons use the cash method for its simplicity, but salons with inventory or employees may benefit from the accrual method for more accurate tracking.

At minimum, monthly updates are recommended. Weekly is ideal for high-volume salons to keep income, expenses, and tips accurately logged.

Common expenses include: rent, product purchases, stylist commissions, utilities, marketing, payroll, POS system fees, and business licenses.

Yes. If you rent out chairs or booths, bookkeeping can track rental income and individual stylist payments to ensure accurate 1099 reporting.

Tips are considered taxable income and should be logged accurately for both employees and self-employed stylists to remain IRS-compliant.

QuickBooks Online is a top choice due to its integrations with salon POS systems like Vagaro, Square, and Booker.

Absolutely. Mixing personal and business expenses can lead to messy books, inaccurate tax filings, and potential IRS red flags.

Clean books reveal which services/products are most profitable, where you’re overspending, and what promotions drive revenue—so you can make informed growth decisions.

Yes. W-2s are issued for employees. 1099s are required for independent contractors and booth renters earning $600+ annually.

Bookkeeping records daily financial transactions. Accounting uses those records to create financial reports, do tax planning, and evaluate profitability.

Yes. RemoteBooksOnline specializes in catch-up bookkeeping for salons. Whether you’re behind a few months or a few years, we’ll get your books up to date fast.

All income, including cash, should be logged. A bookkeeper can help you reconcile deposits and daily sales totals—even if you don’t use a POS system.

Yes. Outsourced bookkeeping is typically cheaper than hiring a full-time staff member, with the added benefit of professional expertise and scalability.