Many lash technicians have also become business owners for the very first time. This means that you will need to keep track of all earnings, expenses and of course tax write offs.
Disclaimer: I’m not a registered accountant, always take tax information from your local government website and/or chartered accountant. In the United States the IRS, and in Canada the CRA are in charge of taxes.
You may be wondering, what is a tax write off?
Basically, it’s a business expense that can be claimed as a tax deduction. For example: If you made $100,000 this year but spent $30,000 on legitimate business expenses, you will then only need to pay tax on $70,000 instead of $100,000. This all makes sense given that you did not get to keep that $30,000 you spent to keep your business operating.
You can see why you want to write off as many legitimate business expenses as possible. Now, before you go all crazy and start writing off your new outfits for the weekend and your daily Starbucks run, we’ll go over some of the business expenses you can write off as a lash extension business owner.
Expenses you can write off as a lash technician and business owner.
Many lash artists forget the first expense: education. Any lash extension training course that you take can be claimed on your tax expenses. This includes continuing lash education, and online mini courses. If you took a $30 course online on lash mapping, save that receipt!
Lash conferences: Another form of continuing education includes lash conferences. If you travel to a lash conference, keep track of all travel expenses as well.
Lash extension supplies
Perhaps one of the most obvious expenses for a lash technician is supplies. Keep receipts for all lash extensions, lash glue, lash extension tweezers, lash primer, etc. Don’t forget to include the small things like mascara wands and aftercare products as every little expense adds up.
Equipment & Sanitization
Lash studio equipment is especially important to keep track of. Equipment is often expensive and will help to reduce your taxable income. Sanitization and cleaning supplies are another thing to keep track of. Even if it’s just a bottle of sanitizing spray, keep that receipt if it’s for your lash business. Examples of lash extension equipment include:
Sheets and pillows for the lash bed
Lash technicians chair
Disinfecting spray and/or wipes
Sterilizing soak, UV sterilizing machine etc.
Office designated vacuum and/or mop
Laundry soap used to clean lash linens
Rent is another big expense each year that is a great tax write-off for lash artists. If you are renting a commercial space, keep track of the rent as well as utilities, internet etc. If you have a home-based business, talk to your accountant about writing off a percentage of your home costs, based on the square footage of the lash studio room in your home.
If you use any form of paid advertising be sure to save this expense. Google ads, Facebook ads, radio ads, or any form of paid advertising for your business is a great tax write-off.
As a lash technician and business owner you will have insurance. Sometimes this is paid monthly, but is often paid up front for the year. Don’t forget to save the cost of your insurance to add to your expenses.
If you live in a State or region that requires licensing, be sure to save the receipt for this annual fee.
One of the most over-looked expenses are all the little things that are purchased to keep the business running smoothly onine. Some examples include:
Website hosting fee
Cost of purchasing a domain
Online Booking systems
Extra plug ins or apps
Square reader or other purchasing options for your customers
Renovations, improvements, and décor
Renovations or improvements that are done specifically for your lash business are another great tax write off. Make sure the renovations are specific to your business. For example: putting a sink into your lash salon space for business use. Save receipts for any décor used to enhance your lash extension studio.
Tax accounting fees and legal fees
Keep track of any money spent on book keeping, tax accounting, or legal fees for your business.
Make sure that things under this category are in fact required to run and operate your business. Sadly, a daily stop to pick up a latté and a breakfast sandwich don’t count. Here are some examples of things that may fall under this category:
Office supplies (printer, paper, pens, etc.)
Beverages or snacks that are provided to clients
The most important thing you can do when preparing for tax season is to stay organized ahead of time. As your expenses roll in, scan them and save them in an organized fashion online. Always consult with a chartered accountant and refer to your government officials when it comes to taxes to make sure everything is correct. Keeping track of all lash business expenses as they come in will make all the difference when it’s time to do your taxes.