Best all-in-one accounting software for salons
All-in-one finance platform for accounting, bookkeeping, taxes and payroll for salons
Why salon owners love mesha
Hours saved on accounting, bookkeeping and financial admin tasks
saved on bookkeeping and tax fees
accurate financial insights
Financial powerhouse for your salon
Intelligent accounting software for modern salons
Supercharge your salon’s growth and close your books 3X faster
Expert bookkeeping tailored to your salon
Managing a salon business presents unique financial challenges. Our expert accounting, bookkeeping, and tax services are customized to meet the specific requirements of your salon. Whether you operate a small boutique salon or a larger spa, we comprehend the intricacies of salon finances and are prepared to handle them efficiently.
Trusted tax management and filing for your salon
Tax Management Software
  • Automated tax calculation for sales, payroll and federal
  • Reminders on taxes and compliance filing
  • Tax ready reports with P&L, expenses and balance sheets
Tax Prep and Filing
  • Instant access to top tax consultants for salons
  • Proficient counsel on salon specific tax frameworks and tax-efficient strategies
  • Minimizing tax liabilities and maximizing deductions
  • Stay up to date on dynamic tax laws and regulations impacting the salon industry

Tax related FAQs for salons

How do I categorize my income as a salon owner for tax purposes?

Your salon income is considered self-employment income. This means that, in most cases, you will report your income on Schedule C of your individual tax return (Form 1040). Ensure that you keep meticulous records of all income sources, including services, product sales, tips, and any other forms of compensation. Use accounting software or hire a professional to help you accurately track your income.

If you hire employees, you'll have payroll tax obligations, which include withholding federal and state income taxes, Social Security, and Medicare taxes. Additionally, you may be responsible for providing employee benefits. Independent contractors, on the other hand, are responsible for paying their own taxes. It's crucial to correctly classify workers to avoid legal and tax issues. Consult an attorney or tax professional for guidance on worker classification.

Sales tax regulations vary by location, so check with your state and local tax authorities to determine if your salon services are subject to sales tax. If required, you will need to collect the tax from clients and remit it to the appropriate tax agency.

To optimize your salon's tax structure, consider forming a business entity such as an LLC or an S Corporation. Consult with a tax professional to determine the best structure for your specific situation and explore tax-saving strategies, such as maximizing deductions, credits, and retirement planning.

Self-employed salon professionals are responsible for paying both the employer and employee portions of Social Security and Medicare taxes, known as self-employment taxes. Be prepared for these additional taxes, and consider making estimated quarterly tax payments to avoid penalties at year-end. Consult with a tax professional to ensure you handle these taxes correctly.

The frequency of tax filings depends on your business structure. Sole proprietors usually file annually, while other entities, like corporations or partnerships, may have different schedules. Be aware of federal, state, and local tax deadlines to ensure you file on time and avoid penalties.

Making payroll painless for salons

Our comprehensive payroll features help make payroll management super simple.

Stay compliant with mesha
  • Off Cycle payroll and flexible payment schedules

  • Next day direct deposit

  • Payroll Deductions and Garnishments

  • Overtime and reimbursement calculations

  • Payroll and taxes across multiple states

  • Payroll for FTEs, contractors and freelancers

Payroll taxes and compliance

We take care of taxes and compliance to adhere to the local regulations and government declarations.

Stay compliant with mesha
  • Automated tax calculation

  • Tax filing and reporting

  • Tax codes and regulation updates

  • Multi jurisdiction compliance

  • Tax liability tracking

  • Work Classification Compliance

  • SUI Reporting

  • Wage Garnishments and Deductions

Want to start a salon business, but don’t know how to go about it?
Build a foundation of financial success with mesha