The short answer
Bookkeeping for salons and barbershops means recording card processor deposits as gross sales minus fees, separating booth rent from service income, tracking tips and commissions correctly, and keeping retail product inventory accurate. AZ Easy CPA works with salon and barbershop owners in Chandler and across Arizona to keep their books reconciled every month.
How is salon bookkeeping different from other businesses?
A salon or barbershop has lots of small transactions, several ways of paying stylists and barbers, tips moving through the card system and retail product on the shelf. Your booking app shows one number, your bank shows another. Good bookkeeping for salons connects the two and shows what each part of the shop really earns.
Most shop owners can tell you how busy they were. Fewer can tell you whether retail is profitable, what card fees cost last year, or whether booth rent covers the rent on the building. Those answers come from books set up for how a shop actually runs.
"He's helped both me and my barbershop stay on top of everything... My barbers also appreciate how approachable and clear he is." (Ali B., Google review)
Booth rent, commission or employee chairs: how do the books differ?
Each model is recorded differently. Booth renters pay you rent and run their own business, so their rent is your income. Commission stylists bring service income into your shop, and you pay them a share. Employees run through payroll. Many shops mix all three, and the books need to show each clearly.
| Chair model | What you record as income | What you record as cost |
|---|---|---|
| Booth rent | Weekly or monthly rent from the renter | None for their services |
| Commission (1099) | Full service sales | Commission paid to the stylist or barber |
| Employee (W-2) | Full service sales | Wages and payroll costs |
For booth renters and commission contractors, we track payments through the year so 1099 forms are easy at year-end. Payroll for employees runs through our payroll partners, and we record it correctly in QuickBooks.
Why don't my Square or Vagaro deposits match my sales?
Card processors and booking apps like Square, Vagaro and Booksy deposit your money after taking fees, refunds and sometimes tips out of the batch. If you record only the deposit, your sales look lower and fees disappear. We record gross sales, then the fees and refunds, so the deposit ties out exactly.
We work from your processor's monthly summary or payout reports. Each payout gets broken into its parts:
- Service sales and retail sales, recorded separately
- Tips collected on cards
- Processing fees as an expense
- Refunds, chargebacks and gift card activity
Once this is set up, your monthly reports show what card processing really costs and whether your pricing covers it.
How should tips be handled in the books?
Card tips belong to your stylists and barbers, not to the shop. When tips come into your account with a card payout, they should be recorded as money owed to staff and cleared when it is paid out, not counted as shop income. Tips for employees also need to flow through payroll correctly.
Recording tips as sales inflates your income and can cause confusion at tax time. We set up a simple tips account so the money comes in, goes out, and nets to zero when everyone is paid. Your payroll partner handles tip reporting for employees, and we make sure the entries match.
Should I track retail product inventory?
If you sell shampoo, styling products or beard care, yes. Retail can be a good source of profit, but only if you know what the product cost you. Tracking retail purchases and counting stock regularly shows your real margin and helps you spot product walking out the door.
We separate product bought for resale from the backbar product used during services. Those are different costs and tell you different things.
- Retail purchases tracked as inventory or cost of goods
- Backbar supplies tracked as a service expense
- Periodic counts recorded to keep stock values honest
- Retail sales reported apart from services
How do we get started?
Free phone call
Tell Chris how your shop runs: chair models, booking app and what you sell.
Review the books
We compare your processor reports to QuickBooks and your bank.
Set up the shop
We build accounts for services, retail, booth rent, tips and fees.
Monthly bookkeeping
Every month we reconcile payouts and send you clear reports.
Salons and Barbershops questions
Do you work with booth rental salons?
Yes. We record booth rent as your income and track what each renter pays during the year. That makes 1099 forms simple when January comes around.
Can you work with Square, Vagaro or Booksy?
Yes. We use the payout and sales reports from your booking or card system to break deposits into sales, tips, fees and refunds in QuickBooks.
Are tips part of my shop's income?
Tips belong to your staff. When they pass through your account, we record them as owed to staff and clear them when paid, so they do not inflate your income.
Do you run payroll for my stylists?
No. We do not process payroll in house. We work with trusted payroll partners and make sure payroll entries are recorded correctly in your books.
What does salon bookkeeping cost?
Monthly bookkeeping plans typically start around $300 a month, depending on transaction volume, accounts and complexity. We quote after a free call.
Can you help me open a second location?
Yes. We can set up QuickBooks to track each location separately so you can see how each one performs. If you need a new entity, our LLC formation service can help.
Bookkeeping near you
From our Chandler office we work with businesses across the East Valley and Arizona, in person or online.
