Bookkeeping for Salons and Barbershops
Daily cash and POS reconciliation, chair rental income tracking, HST on services and products, worker classification, tip income rules, and payroll — for hair salons, barbershops, nail studios, and beauty businesses.
Last updated: March 2026
Why Salons Need Specialists
Cash, Tips, Rentals, and Staff Classification
High-cash operations, complex worker classification, and tip income rules make salons and barbershops one of the most scrutinized industries by CRA.
Cash Management Risks
High-cash service businesses are a frequent target for CRA net worth assessments. Without accurate daily cash records, unreported income allegations are difficult to defend.
Chair Rental vs. Employee
Stylists and barbers can be employees, independent contractors, or chair renters. Each has different payroll, T4A, and HST implications. Misclassification creates CRA exposure.
HST on Services and Products
Hair and beauty services are taxable. Retail product sales are also taxable. But tips are not — and many salon owners either over-collect or under-remit HST on tip income.
Supply and Retail Inventory
Professional supplies used in services (color, chemicals) have different tax treatment than retail products sold to clients. Mixing them creates both COGS and HST errors.
Our Services
What Taxxel Handles for Salons
Daily Cash & POS Reconciliation
Every shift balanced — cash, card, and tips reconciled against POS reports and actual deposits so nothing falls through the cracks.
Chair Rental Income Tracking
Rental income from booth renters tracked separately from service revenue — with correct HST treatment and T4A preparation where required.
HST Filing
HST correctly applied to services and retail products, with tips excluded — and all eligible ITC claims recovered for supplies and equipment.
Supply vs. Retail COGS
Professional supplies consumed in services separated from retail inventory sold to clients — ensuring accurate COGS and gross margin.
Payroll for Employed Stylists
Bi-weekly payroll for salaried or hourly stylists, including tip allocation reporting and CRA remittances.
Monthly Revenue Reporting
P&L broken down by service revenue, retail sales, and rental income — so you can see exactly where your profit comes from.
T2 or T1 Tax Return
Corporate T2 or self-employed T1 prepared annually — including all eligible deductions for supplies, equipment, and occupancy costs.
Expense Categorization
Rent, utilities, insurance, credit card fees, software, and equipment — all coded correctly and ready for tax filing.
Complete Package
What's Included
- Monthly bookkeeping and bank reconciliation
- Daily cash, card, and tip reconciliation
- Chair rental income tracking and T4A preparation
- HST/GST quarterly filing (services, retail, rental)
- Professional supply vs. retail inventory separation
- COGS and gross margin tracking
- Payroll for employed stylists and assistants
- CRA payroll remittances and T4 slips
- Monthly P&L by revenue category
- Annual T2 corporate or T1 self-employed tax return
- Equipment CCA schedules
- CRA correspondence management
Pricing
From $100/month
Flat monthly rate based on chair count and transaction volume. No hourly billing — predictable costs every month.
Get a Custom QuoteAll Beauty Businesses Welcome
Hair salons, barbershops, nail studios, lash and brow bars, esthetics studios, and med spas — we understand the nuances of every format.
FAQ
Frequently Asked Questions
Ready to Get Started?
Get in touch today — we are here to help with your tax and bookkeeping needs.
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