Basic Accounting for Barbershops: A Practical Guide for Owners and Barbers

Keeping the books for your barbershop doesn’t have to be a headache. With clear concepts and a bit of organization, you can run basic accounting for barbershops that lets you know how your business is doing at any time and stay on the right side of the tax office. In this guide we explain step by step what to record, how to organize it, and which tools can help.

If you own a barbershop or work as a self-employed barber, understanding your numbers is essential: it helps you set prices, control costs, and plan for growth. Here you’ll find everything you need to get started on the right foot.

Why Is Accounting Important for a Barbershop?

Many barbers focus only on cutting hair and leave the numbers for later. The problem is that without at least some control, you don’t know if you’re making or losing money, or how much tax you owe. Basic accounting helps you:

• See if your barbershop is profitable: income minus expenses.
• Prepare your tax returns: with organized data, everything is faster and safer.
• Make decisions: raising prices, hiring, or investing in equipment.
• Spot money leaks: expenses you can cut or optimize.

You don’t need to be an economist. Recording your money movements and checking a few basic metrics covers most of the work. To go deeper on running the business, you can use our guide on how to manage a barbershop.

Basic Concepts: Income and Expenses

In barbershop accounting, everything boils down to two blocks: what comes in and what goes out.

Income

All money you receive from your activity. In a typical barbershop this includes:

• Services: haircuts, beard trims, brow grooming, treatments, etc.
• Product sales: waxes, oils, shampoos you sell in the shop.
• Other: tips (depending on how you report them), one-off extra services.

Ideally, note down each day or each till: total from services and total from products. That way you can spot trends (e.g. more product sales in summer) and match them to the money that actually came in.

Expenses

Everything you pay to keep the barbershop running. They’re often grouped as:

• Fixed expenses: rent, utilities, internet, insurance, software (e.g. Barbería Club for bookings and management).
• Variable expenses: products (shampoo, wax, disposable towels), one-use supplies, machine maintenance.
• Staff costs: wages, payroll taxes, if you have employees or pay yourself regularly.
• Other: permits, training, marketing, one-off costs.

Keeping invoices and receipts is required for the tax authority and for you: it shows exactly how much you spent and on what.

How to Record Income and Expenses

You don’t need complex accounting software at first. A spreadsheet (Excel or Google Sheets) or a simple app is enough. The key is to be consistent.

Daily Till Log

At the end of each day, note:

• Total taken in cash.
• Total taken by card or mobile payment.
• Rough breakdown: how much from services and how much from products (if you have it).

This avoids forgetfulness and lets you compare physical cash plus bank movements with what your booking system says. If you use a booking system like Barbería Club, you can cross-check the number of services done with what you collected to spot errors or shortfalls.

Expense Log

Whenever you pay for something for the business:

• Keep the invoice or receipt.
• Classify it: rent, supplies, products, software, etc.
• Enter it in your sheet or app with date, description, and amount.

If you’re self-employed, this will feed into your quarterly summary (income tax and sales tax). If you have a company, your accountant will need this; having it organized saves time and money.

Key Metrics for Your Barbershop

With income and expense data you can work out indicators that show how the business is performing.

Profit (or Net Result)

Profit = Income − Expenses.

If the number is positive, the barbershop is making money. If it’s negative, you’re losing money and need to look at income or cut costs. Do this at least monthly.

Gross Margin per Service

For each service (haircut, beard, etc.) you can estimate:

• Price you charge.
• Approximate cost of products and time (if you want to refine it).

That shows which services leave you the best margin so you can adjust prices or promotions. In our how much it costs to open a barbershop guide you’ll find cost structure ideas to compare.

Average Ticket

Average ticket = Total income for the period ÷ Number of clients (or services).

It tells you how much your clients spend on average per visit. If you increase the average ticket (e.g. by selling products or add-on services), income goes up without needing more appointments.

Monthly Fixed Costs

Add up rent, utilities, insurance, software, and any other cost you pay every month no matter what. That’s the minimum you need to cover with income to avoid losing money. Knowing this figure helps you set revenue targets.

Taxes and Tax Obligations

Depending on your country and legal form (sole trader, company), you’ll need to file quarterly or annual returns. This is only a general overview; always check with an accountant or advisor.

General Tips

• Keep all purchase and expense invoices.
• Issue invoices or receipts to clients when required by law.
• Note filing deadlines (quarterly, annual) and don’t leave everything to the last day.
• If you’re unsure, hire an accountant: the cost usually pays off in tax optimization and peace of mind.

You can consult your country’s tax authority website for official guidance on forms and deadlines. For example, the IRS small business and self-employed section has information for US taxpayers.

Tools That Make Accounting Easier

You don’t have to do everything by hand. Some useful tools for a barbershop are:

• Barbería Club: built for barbershops; it helps you organize appointments, clients, and schedules. Having appointments and barbers clearly organized makes it easier to match income to the number of services. You can try Barbería Club for free and use it as the base for your daily control.
• Spreadsheet: Excel or Google Sheets for logging income, expenses, and monthly metrics.
• Invoicing app or software: to issue invoices and keep a clear record of sales.
• Accounting software: if your volume grows or you have a company, a program like QuickBooks or the one your accountant recommends.

Combining a booking system like Barbería Club with a simple expense sheet or app is usually enough for solid basic accounting. To compare day-to-day software options, see free vs paid barbershop software.

Frequently Asked Questions About Barbershop Accounting

Do I Need an Accountant for My Barbershop?

It’s not mandatory, but it’s a good idea if you’re not confident with taxes or if you have employees and payroll. An accountant or advisor helps you meet deadlines, deduct expenses correctly, and avoid mistakes that can cost money. For a small barbershop, often a quarterly review is enough.

What Expenses Can I Deduct as a Self-Employed Barber?

Generally, expenses that are necessary for your work: rent (or a proportional part if you work from home), utilities, professional products, tools, insurance, related training, management software, phone and internet for work, etc. Exact rules depend on your country and tax regime; an accountant can tell you what you can deduct and how to document it.

How Often Should I Review the Numbers?

Ideally, log income and expenses daily or weekly, and do a monthly summary: total income, total expenses, profit, and fixed costs. That way you see the trend and can react quickly if something is off. A deeper review (margins per service, average ticket) can be monthly or quarterly.

Summary: Basic Accounting for Barbershops in 5 Steps

1. Record all income (services and products) by day or by till.
2. Record all expenses and keep invoices and receipts.
3. Calculate each month profit, fixed costs, and if possible average ticket.
4. Meet tax obligations on time, with organized data or with an accountant’s help.
5. Use simple tools: a booking system (like Barbería Club), a spreadsheet, or an expense app.

Basic accounting for barbershops done well gives you control, peace of mind, and better decisions. If you want to get your appointments and daily routine in order first, try Barbería Club for free and then add income and expense tracking. Your business and your wallet will thank you.