You Don't Own a Salon. You Own A Business.
In his latest blog, Leon Alexander Ph.D., challenges industry conventional thinking to help owners add more to their bottom lines.
How to Write-Off a Business Conference
Our favorite industry CPA April McDaniel offers advice for what you can write-off as expenses when you attend an industry conference.
by April McDaniel, CPA, CRSP, with Kopsa Otte CPAs & Advisors
December 22, 2022
2 min to read
Kopsa Otte's April McDaniel, CPA, CRSP, offers advice on writing off business trips.
April McDaniel
Are you considering going to a conference this year like SALON TODAY'sData-Driven Salon Summit? Thinking about the costs?
Let’s talk about what that conference really costs when you consider the tax benefits of the expenses.
The short answer is most expenses related to conference travel are deductible as long as you can show that your attendance benefits your business.
What does that mean?
Let’s use the example that you spend $1,000 total on your business trip. Do it right and it really costs you on an average $750. That’s a savings of 25%! Of course, this varies based on your personal tax-bracket, but you get the point.
But wait…. the IRS has some rules on how to make sure these deductions aren’t disallowed if they come knocking for an audit. Documenting the business purpose and keeping receipts if the expense is over $75 are two examples. In most cases, the credit card statement is not enough documentation.
Here are some examples of deductible travel expenses:
Travel by airplane, train, bus or car between your home and the conference.
Fares for taxis or other types of transportation between:
The airport and your hotel.
The hotel and the conference location.
To and from a business meal.
Shipping of baggage.
Using your car while at the conference: You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking fees. If you rent a car, you can deduct only the business-use portion for the expenses.
Lodging – must have a detailed list of charges.
Non entertainment-related meals.
Dry cleaning and laundry.
Tips you pay for services related to any of these expenses.
Remember if employees travel with you and request reimbursement of their expenses you must have an Accountable Plan document in place and gather the required documentation from them to reimburse them and deduct the expenses.
Join us at Data-Driven Salon Summit on May 5-6 in Denver, Colorado, collect your tax write-off and drop by Kopsa Otte's table to ask April McDaniel any of your tax-related business questions.
Disclaimer:Because every situation is different, it is important that individuals seeking specific advice contact a professional advisor. The information provided does not constitute legal, tax, accounting, or financial advice and is offered as an information service only. No liability whatsoever is assumed in connection with the use of this information.
Subscribe to Our Newsletter
More Salon Management
Are Your Stylists Doing Free Hair on Your Time? Introducing the 'Win-Win' Staff Services Playbook
In her latest blog, Amy Pal helps you develop your own clear guidelines around complimentary free employee services.
Caring for Your Caregivers at the Front Desk
From managing air traffic on busy days to handling frustrated guests' complaints, your front desk team often serves as the salon's emotional shock absorber. From a customer service lesson from the DMV to a list of strategies for caring for your front line, our experts offer ideas for alleviating stress, celebrating wins, and setting goals.
by Stacey Soble
What's Really Happening with Salon Retail and How to Reclaim Your Revenue
According to the KIM Report, top-line salon revenue appears steady or slightly up, but that growth is driven primarily by service price increases. Beneath the surface, retail performance and client visit frequency (appointment drift) are under real pressure. In his latest blog, Alain Audet offers strategies for keeping your salon's retail sales strong.
Trimming Your Tax Bill by Putting Family on the Payroll
Putting your family to work in the salon offers some real tax benefits, but you have you have to play by the rules of the tax code to claim them. Azarvand Tax Law's Leticia Skrabut, Esq., shows you how.
The Art of the WOW Experience
Discover how to create a true “WOW experience” for every client by first building a culture where your team feels engaged, empowered, and inspired. Drawing on Calvin Stovall’s Iconic Framework, this blog explores how salon, spa, and clinic leaders can strengthen culture, elevate customer experience, and build a business that stands out for the long term.
Sponsored by Phorest Salon Software
Why Wellness Belongs on Your Salon's Growth Plan
The wellness industry is growing fast, and salons and barbershops already are an important part of it. In her first blog, Tracy Rado shares where the wellness dollars are heading, and how salons can grow with this movement.
Why Your Revenue Looks Good But Your Business Feels Stressed and What to Do About It
While salon sales are increasing, owners often feel they're working harder for the same or less profit. Leverage Q2 data from The KIM Report, Alain Audet reveals some of the structural changes that are dampening your growth and why your region and your salon size matters.
Why Your Holiday Season is Won in September
Weaknesses in your business are amplified during the Holiday Season. Spark Pro Global's Lucy Randall shows you five things to do now to have the strongest holiday season yet.
Appearance Standards are the New Dress Code
In Kati Whitledge's latest blog, she shares how salons have moved away from dress codes and embraced appearance standards. But by removing strict dress codes, some businesses may have unintentionally lowered their appearance standards. Whitledge helps you explain to your team why an appearance standard is important and how to smoothly implement a new appearance policy.
Working Through the Gray Areas of the Small Business Health Care Tax Credit
The Small Business Health Care Tax Credit is a non-refundable tax credit for for-profit businesses that provides a financial incentive for eligible employers who offer health insurance coverage to their employees. Leticia Skrabut, Esq., walks you through how to claim that credit.
5 Things Every New Stylist Should Learn Early
Developing strong work habits early in one's career supports long-term success in the salon industry. Jesse Linares offers new stylists his top five tips.
The Four Numbers Every Salon Owner Should Know
Most salon owners have no idea what these numbers are. You can hit record sales and still have a profit problem. The difference comes down to four numbers almost nobody was taught to track.
Sponsored by Strata Salon Systems™
Your Salon Can't Survive Without You. That's the Problem.
A five-area audit every owner-dependent salon needs to run. You built something that looks successful. Now find out if it can survive without you.
Sponsored by Strata Salon Systems™
Waiting for the Right Time Is a Decision. Here's What It's Costing You.
Every month you put off fixing the problem, it gets bigger, more expensive, and harder to solve.
Sponsored by Strata Salon Systems™
A Partner in Business and in Life
At Janet St. Paul Studio for Hair and Beauty, Director of Operations Natasha McMillen helps bring her wife Janet St. Paul's vision to life, elevating every system from education to operations.
by Stacey Soble
Back to Business with the Pinstripe Trend
Expand your color service menu with the Pinstripe technique. Brooks and Brooks' Marlon Hawkins walks you through the technique.
by Stacey Soble