The Constant
Starting at Impressions front desk in 2006 when he was 19 years old, General Manager Paul Petrowsky is a seasoned professional who owner Sarah Taylor says is responsible for much of her own success.
by Stacey Soble
Taxing Times: Ways to Save on Your Return
As we worked on this story, Larry Kopsa was working hard on tax returns for this year’s April 17 filing date, but he took a quick break to give us some eye-opening tips for owners.
April 6, 2012
4 min to read
Larry Kopsa
As we worked on this story, Larry Kopsa was working hard on tax returns for this year’s April 17 filing date, but he took a quick break to give us some eye-opening tips for owners. A partner of Kopsa Otte since 1972, Kopsa has specialized in the area of salons and distributors for the past 20 years and even writes a blog for salon owners on tax topics.
ST: As a salon owner, what numbers should I be watching?
Kopsa: “One issue many salon owners have—your competitors are bad business owners and they either are not reporting all their income or are taking money under the table. It’s hard to compete against that. But from a business perspective, what you can measure, you can manage. Here are some measurables:
• One of the major issues that’s easy to spot: backbar costs. Take your backbar cost and divide by the number of services for rate. Adjust it for inventory. Watch that rate. If it’s going up, question it. If you’ve measured it, you can manage it.
• When it comes to your budget, you should know what is going to happen in 2012 if everything falls in place as expected. If it doesn’t fall in place, such as an employee becoming pregnant for example, then you go from there.
• You need to know what your break-even point is. I can say here’s the dollars worth of sales you need on a weekly, monthly, yearly basis. If you have X, here’s how many clients you need to see to break even. You always need to know how many clients you need to get in to break even.
• Understand the five ways to make more money: get more clients, cut expenses, raise prices, increase pre-booking, increase add-on services/retail sales.”
ST: What’s the best way for an owner to work with an accountant?
Kopsa: “Just like a client consultation, communication is key between the salon owner and accountant. I could be the best in the world, but if you drop off a box of papers and say, ‘Here are my numbers,’ and I don’t know what’s involved, I can’t help you. Owners should write down everything and communicate properly with their accountant. We actually see our clients’ numbers on an ongoing basis. At midyear, we look at what has transpired for the first part of the year, and then, based on that, project income to the end of the year. We also look at what changes may have taken place such as lower income because of loss or pregnancy of a major staff person; equipment purchase, etc. We then determine if the estimates we’ve set up look appropriate. If they are too high we can cut them back so we don’t have too much sitting with the IRS. On the other hand, if they are too low, then we need to be ‘rat holing’ some money for April 15. This is a good time to catch up on law changes and other goings on in Washington. In addition, it allows us to know the taxpayer’s plans so we can help.”
ST: What are some common deductions salon owners miss?
Kopsa: “Here are a few:
• Mileage: At 55.5 cents per mile, make sure you are recording all of your business miles. If the primary purpose is for business, even if there is some non-business activity in the trip, you can deduct it.
• Damaged clothing: Stylists work around chemicals which can be hard on clothes, and the value of clothing damaged at work can be deducted.
• Office in the home: Understanding all the offi ce-in-the-home rules to determine if you might qualify.
• The percentage of meals: Most meals and entertainment are only 50 percent deductible, but if the meal is for a company party or meeting function for clients, it can be 100 percent deductible.
• Being taxed in the wrong form of business: As your business grows you need to reevaluate to determine if you are being taxed in the proper entity.
• Using family members as a write off: Often family members help around the business. Paying them reasonable compensation can move money to a lower tax bracket.”
For more information visit kopsaotte.com or call 402-362-6636. Catch Larry Kopsa’s blog at kopsaottesalon.blogspot.com.
Subscribe to Our Newsletter
More Salon Management
The Most Wonderful Time in Salons and Spas
Planning is in full swing for the most anticipated events and promotions for the 2026 holidays. As owners share their favorite ways to celebrate, they prove that a carefully planned event can also build culture, increase client loyalty, boost sales, and set a business up for a successful 2027.
by Stacey Soble
Leading with Empathy, Humility and a Mastery of Systems
When things run amok at Mane Attraction Salon, Owners Chris and Jenny Knudsen say General Manager Sami Hernandez is their go-to resource and ultimate sounding board. Meet Sami in this installment of Meet the Manager.
by Stacey Soble
Pagoda Brings AI-Powered Operations to Skinovatio Medical Spa Locations
Pagoda, a new AI-native operating system for scheduling, payments, patient records, marketing, and client communications, launches at Skinovatio Medical Spa in Arlington Heights, Illinois.
by Staff
How Women are Rewriting the Rules of Grey Hair
At a panel discussion hosted by L’Oréal Professionnel in Paris in early July, French Philosopher Sophie Galabru explored the cultural shift where women are increasingly choosing natural, personalized color results over traditional grey coverage. In an exclusive interview with SALON TODAY, Galabru and L’Oréal Professionnel Colorist Pierrick Beringer discuss this shift and how salons and colorists respond.
by Stacey Soble
Warm Leadership and Analytical Precision
At Salon Blonde, Director of Operations treats the staff as the salon's most important guests, while her wonderful 'nerdy' side, loves data, systems, and numbers. Find out how she makes Salon Blonde tick.
by Stacey Soble
Trotting the Globe, Forging Connections, Fostering Artistic Creativity
In an exclusive interview with SALON TODAY, Salon Owner Salvatore Minardi reflects on his past 18 months as Intercoiffure America Canada's World Talent Exchange Ambassador and how his experiences will help encourage cultural and artistic exchange and support greater engagement between ICA and the global organization Intercoiffure Mondial.
by Stacey Soble
Client Retention Guidebook
Everything you need to know about client retention as a salon owner.
Success Grown from Within
Owner Shelby Bills says her general manager, Sydney Osborne, reminds her of the power of leading with heart. Find out how Osborne became a great leader in our lastest installment of Meet the Manager.
by Stacey Soble
How Salon Leaders Can Process the Pain and Lead Forward When a Team Members Leaves Unethically
In her latest blog, Kati Whitledge identifies the five stages salon owners go through when a team member leaves the salon unethically, offering advice for each stage.
How AI Is Closing Revenue Gaps for Salons and Spas
The beauty and wellness businesses pulling ahead aren’t just working harder—they’re using AI to capture demand, personalize pricing, and convert more of every guest interaction into revenue. Here’s what the benchmark data reveals about the growing gap between AI adopters and everyone else.
Sponsored by Zenoti
The Premium Talent Magnet: The Modern Salon Playbook for Attracting Six-Figure Stylists
Stop chasing recruitment ghosts on generic job boards and start curating an elite team. Discover the framework that top-tier salons use to bypass phone tag, automate visual portfolio vetting, and attract high-earning, culture-first beauty professionals directly through real-time messaging. Turn your recruitment process into an exclusive brand invitation that keeps your highest-ticket chairs permanently filled.
Sponsored by Beautista
Five Revenue Leaks Hiding in Your Salon
Your calendar looks full, but is all of that demand actually converting to revenue? From phantom rebookings to underpriced peak hours, the 2026 Benchmark Report exposes five revenue leaks that most beauty and wellness businesses don’t even know they have.
Sponsored by Zenoti
The Heartbeat of Zandi K's Success
After moving to Colorado and teaching at a cosmetology school, Allison Stock joined Zandi K as a stylist, eventually becoming part of the Leadership Team, Education Team and Master Bridal Team. Today, as Director of Operation, Stock is Owner Nicki Wenz's right hand, managing human resources and operations, education and career development, and coaching and culture.
by Stacey Soble
Rethinking Retail in the Era of E-Commerce
In a world dominated by e-commerce, salon owners push back with proven strategies to increase retail sales while motivating team members to educate their clientele and delighting clients with retail-themed events and clever merchandising displays.
by Stacey Soble
The Harper Ellis Hair Co. Certification Program Teaches Stylists a Smarter, Safer Way to Install Extensions
The company's Concealed Bead Method is raising the bar for what professional extension education can deliver.
by Staff
The Micro-Salon Blueprint: How Kat Scott Quadrupled Income by Maximizing Her Suite
Scott maximized her micro-salon by transitioning from stylist to strategic owner, focusing on recruiting and station-sharing. By prioritizing her ownership role over behind-the-chair work, she grew her team to six stylists within the two-chair, 150-square-foot space before eventually moving to a larger facility.
by Staff