The rush of the new year has worn off, and the next big barbering biz event is on the horizon. We’re not talking about St. Patrick’s Day or even Easter Sunday. No, we mean tax season is rapidly approaching.

While not as festive as green beer or Easter bunnies, tax season is an important time for your barbering biz, and preparing for it can save you quite a headache. Whether you’re one of the select few who understands tax structures or you’d rather do anything but figure out how much is owed this year, we’re here to help you.

Key Takeaways: Getting organized for tax season is key to getting your taxes done accurately, efficiently, and with minimal stress. Start preparing early to avoid tax season headaches and make your life easier when April arrives.

4 Tips to Tackle Barbering Tax Season

If you are organized, tax season is nothing to be afraid of. With a bit of effort and preparation, the big, scary cloud looming over tax season will dissipate and let the balmy warmth of smooth sailing carry you home. Enough metaphors, though; let’s dive into how you can get organized this tax season.

Don’t Delay; Start Today

Nothing creates stress and perpetuates potential mistakes like waiting until the last minute to file your taxes. With a laundry list of responsibilities sneaking up on you and the pressure building as the days tick by, your tax season blues will only grow if you delay starting the process.

The taxes themselves may prove to be a pain, and starting early gives you the flexibility you need to address any snags before it’s too late. Throw in your barbering biz, personal life, and other passions, and you have a recipe for trouble if you delay doing your taxes.

Rather than risking a last-minute scramble and the possibility of a late filing (and the fees that come with it), be sure to start early and give yourself plenty of time to get things done.

Get Help When You Need It

As a barber, you’ve gone through years of education, training, and hands-on client work to reach the professionalism and skill you now possess. That’s why people come to you for haircuts, styling, and their other barbering needs. You’ve put in the work to become an expert.

When your taxes get complicated or overwhelming—or you simply don’t want to spend the time doing them—seeking the professional help of a tax expert is a great idea. It may cost money, but the reduction in stress is often worth the investment. Mix in the time and effort you’ll be able to allocate to other, more productive projects, and working with a certified public accountant (CPA) seems like a bargain.

If you need an even more compelling reason to opt for an accountant this tax season, keep in mind that they have the knowledge and experience required to maximize your deductions and reduce the possibility of any fees or penalties. That means more money in your pocket once taxes are paid!

Accountants get incredibly busy during tax season, so try to do your research and find the right CPA for your barbering biz before tax deadlines get too close.

Track Deductions and Business Expenses

Business owners have the opportunity to write off certain expenses from their taxes. What this means is that certain purchases can be deducted, thereby lowering the taxes you have to pay. Sounds pretty good. Right?

Better still, these deductions include things you use regularly, including the following examples.

• Shop supplies, such as hair products, cleaning supplies, uniforms, and more.
• Business tools like your website, various software, internet services, and so on.
• Necessary equipment, including barbering tools, computers, chairs, etc.
• Business travel, including mileage, lodging, food, parking, and such.
• Miscellaneous expenses related to advertising, charitable donations, marketing, and more.
• Professional liability insurance typically qualifies, as well, but be sure to confirm this with a tax professional!

Continue Your Education and Receive Tax Credits

Keeping your certification up to date, adding to your skillset, and expanding the service you can offer at your barber shop all come back to one thing—continuing education (CE). The benefits of getting CE credits are many, and they include potential tax breaks.

In fact, tax credits like the Lifetime Learning Credit are even more powerful than regular deductions because they don’t reduce your reported income; they lower your taxes directly. Talk about a win-win (win-win-win).

Tax season for barbers doesn’t have to be overwhelming, negative, or terribly stressful. By preparing early and organizing ahead of time, you can help your tax season go smoothly, reduce your taxes as much as possible, and face the day free of fear!

For more barbering insights ranging from taxes to beard trends to social media marketing, be sure to subscribe to NAOB and visit our regularly updated blog.