How to Get Your Beauty Biz Finances Ready for Tax Season

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If you're a solo esthetician, spray tan artist, or beauty pro running your own business, you’ve likely had moments where your head spins just thinking about taxes and financial paperwork. But here’s the good news: closing out the year doesn’t have to feel chaotic. A few simple systems can help you walk into tax season calm, confident, and ready.

The end of Q4 is the perfect time to review what’s coming in, what’s going out, and what you need to wrap up before the year ends. This post will walk you through essential year-end accounting steps—made for beauty professionals—plus tools and resources that’ll make the process smoother.

Let’s prep now so you can profit (and breathe easier) later.

5 Year-End Accounting Steps to Organize Your Beauty Biz Finances

Step 1: Gather Your Bank Statements and Transaction History

First things first: collect the numbers.

Log into your business checking accounts, credit cards, and payment processors (like Square, Stripe, or Venmo) and download transaction reports for the entire year—or at least Q1 through Q4. If you accidentally used personal accounts for business expenses (happens to the best of us), grab those too.

Pro Tip: Create a digital folder labeled "2025 Finances" and start filing everything there.

Affiliate Tool: QuickBooks Self-Employed helps auto-categorize transactions and generate easy tax reports. Bonus: it syncs with your bank accounts.

Step 2: Sort Out Business Expenses from Personal

This is where things often get messy—especially if you didn’t use a separate business account all year.

Start by reviewing every transaction and labeling it:

• Business (supplies, tools, software, education)
• Personal (groceries, gas, Target runs)
  
  

Once your business expenses are isolated, group them into categories:

• Salon Supplies
  
• Merchant Fees
  
• Software & Subscriptions
  
• Rent or Utilities (if you lease a studio)
  
• Mileage or Travel
  
  

Use a color-coded spreadsheet or your accounting tool to keep it organized.

Affiliate Tool: Need help organizing your numbers fast? Use Candice’s Beauty Business Expense & Mileage Tracker for a done-for-you spreadsheet template.

Step 3: Organize Receipts (Yes, Even That One)

Receipts matter. If you’re ever audited or just need to remember why you spent $137 at Sally Beauty in March, you’ll be glad you saved them.

Here’s how to simplify it:

• Snap a photo of any paper receipts
  
• Save emailed receipts to a Google Drive folder
  
• Organize them by month or category
  
  

Affiliate Tool: Otter.ai is perfect for voice-noting expenses on the go, so you never forget a purchase.

Step 4: Track Assets, Equipment & Depreciation

If you bought new gear this year—like a spray tan machine, facial steamer, LED mask, or salon chair—you may be able to deduct the full cost or depreciate it over time.

What to do:

• Make a list of purchases over $100
  
• Note the purchase date, amount, and category
  
• Save all receipts and warranty info
  
  

Talk to your accountant to see which ones qualify for Section 179 deductions.

Affiliate Tool: QuickBooks Self-Employed helps track assets and depreciation.

Step 5: Prep for Tax Filing Like a Pro

Now that your numbers are organized, let’s talk about what your tax person (or software) will need:

• Profit & Loss statement (P&L)
  
• Total income for the year
  
• Categorized business expenses
  
• Mileage log
  
• Equipment list
  
  

If you're a sole proprietor or LLC, you'll likely be filing Schedule C with your personal return. This is where your organized documents will save you a ton of time (and money).

Need a walkthrough?

• Check out the Mid-Year Money Moves Worksheet to identify gaps before year-end
• Want Candice to review a sample month with you? Book a free clarity call

Bonus: Use These Tools to Stay Ahead Next Year

If this year felt disorganized, don’t stress—just prep smarter for next year.

Start with:

• Beauty Business Expense Tracker (so you’re not scrambling in December)
  
• Trello (for planning admin or "CEO Days")
• Otter.ai for voice-to-text reminders

Final Thoughts: Get Clear, Get Compliant, Get Confident

Getting your beauty business financially prepped doesn’t have to be overwhelming. Taking just a few steps now can save you hours (and headaches) come tax season. You’ll feel more legit, more in control, and better prepared to hit your 2026 goals.

Save or Pin this post for later, and share it with another beauty pro who could use a financial reset. Ready to get the support you need? Grab the Expense Tracker and let’s make this the year your back office feels as beautiful as your front room.