You became a hairdresser, beauty specialist, or nail technician because you love your craft – not because you're passionate about paperwork. Yet you can't escape it: invoices, taxes, keeping receipts. The good news? With the right approach, accounting takes no more than an hour per week.
What does salon accounting involve?
As a self-employed beauty professional, you'll deal with a few key components:
Tracking income – Every treatment you perform and get paid for needs to be recorded. Whether you charge €25 for an eyebrow treatment or €150 for a full set of nails.
Recording expenses – Think about products you purchase, your rent (or a portion of your housing costs for a home salon), equipment, and business subscriptions.
Creating invoices – Not every client asks for an invoice, but you need to be able to demonstrate what you've earned. A point-of-sale system or invoicing software helps with this. Read more about invoicing for hairdressers and beauty professionals.
Tax returns – Depending on your country's regulations, you may need to file periodic tax returns and pay VAT on your services. Check if you qualify for any small business VAT exemptions.
DIY or outsource?
This is your first big decision. Both options have pros and cons.
Doing it yourself works well if you have a relatively simple administration. You have no employees, occasionally purchase products, and your income comes mainly from treatments. With good accounting software, you can manage this yourself. It saves you roughly €100 to €300 per month in accountant fees.
Outsourcing to an accountant makes sense if you really hate doing it, if your business is growing, or if your situation becomes more complex (think employees or multiple locations). An accountant costs money but prevents errors and saves you time.
Many salon owners choose a middle ground: they maintain the daily administration themselves using accounting software, and have an accountant handle the annual closing and tax returns.
Which accounting software suits you?
There are dozens of accounting programs, but not all are suitable for a small salon. What should you look for?
Ease of use – You don't want complicated software that requires a course to understand. It should be intuitive.
Price – As a self-employed beauty professional, you don't want to spend €50 per month on software. Fortunately, there are affordable options starting at €10-15 per month.
Integrations – Can the software connect with your bank? With your booking system? The less you have to type manually, the better.
Popular options include Moneybird and e-Boekhouden. Choose one that fits your needs and budget.
Smart habits that save you time
Most salon owners who struggle with their administration don't have a system. They keep receipts in a drawer, occasionally send an invoice by email, and at the end of the year it's a puzzle. It can be different.
Process your administration weekly. Take a fixed moment each week – for example, Sunday evening or Monday morning – to update your income and expenses. Fifteen minutes is often enough.
Photograph receipts immediately. Got a receipt at the wholesaler? Take a photo right away with your phone and upload it to your accounting software. You won't lose it, and you won't have to search later.
Automate where possible. Link your business bank account to your accounting software so transactions are automatically imported. Use software that automatically creates invoices after a treatment.
Keep business and personal separate. A separate business account makes your administration much clearer. You can immediately see what comes in and goes out for your salon, without personal expenses mixed in.
Invoices: what should be on them?
When you send invoices, they must meet certain requirements:
- Your own name and address (or business name)
- Your business registration number
- The date of the invoice
- A unique invoice number
- Customer's name and address
- Description of the treatment
- The amount (and VAT if applicable)
- Your bank account number
For cash payments, you don't necessarily need to send an invoice, but you must be able to demonstrate what you've earned. A POS system or payment system that automatically records transactions is ideal.
Linking accounting to your booking system
This is where it gets really smart. If you use a booking system that connects to your accounting, you hardly need to do anything manually.
Imagine: a client books a treatment online, pays directly, and afterwards an invoice is automatically created in your accounting software. No hassle with separate payment requests, no receipts, no manual entry.
Bookura, for example, connects directly with Moneybird and e-Boekhouden. Every payment that comes in through Bookura can be automatically recorded as an invoice. You just need to check that everything is correct.
Common mistakes (and how to avoid them)
Not keeping receipts – Tax authorities can audit your administration up to 7 years back. Keep everything, preferably digitally.
Mixing business and personal – It makes your administration confusing and can cause problems during an audit.
Forgetting to pay taxes – If you need to charge VAT, you also need to pay it. Don't forget this, as penalties can be significant.
No reservation for income tax – Set aside a percentage of your revenue each month for income tax. This prevents surprises.
Conclusion
Salon accounting doesn't have to be a nightmare. With good accounting software, smart integrations, and fifteen minutes of attention per week, you can keep everything organized without stress. Start simple, automate where you can, and outsource what you really don't want to do yourself.
Don't have a booking system that connects to your accounting yet? Try Bookura for free and discover how easy it can be.