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You’re the beauty expert.

We’re the beauty accounting experts.

Let’s make your finances match your hair and nails: flawless.

Here’s what you know… 

Your business is exploding faster than Paul Mitchell’s Superhair Salon did in 1973.

[Okay, maybe not… but it’s close.]

You’re busy turning out beauty queens and bringing in beauty green… 

maybe more green than you’ve ever earned before!

You know accounting is important, but you also have new employees to mentor, product orders to make, content to create, and beauty sleep to be slept.

Nobody warned you: Success brings a lot more freedom, but also a lot more questions…

How much do I save for taxes?

How much do I keep for myself? 

When can I buy that Tesla?

We get it.

Here’s what we know…

Beauty pros are smarter than red-carpet trends, scrappier than a dang scrapbook, and more adaptable than clean hair (the holy grail for easy styling).

You deserve a CPA who really gets you.

Legit success requires legit accounting because in our experience, messy accounting is a worse idea than a DIY perm.

And as the new “Chris Appleton of the neighborhood,” you can’t afford to be making poor financial decisions while in the center spotlight.

Enter: Carter Cook CPAs

We are the leading experts in beauty industry accounting who:

  1. save you peace of mind by getting done what needs to be done,
  2. save your time + money in the long run by educating you along the way,
  3. and save your business from beauty-industry-specific financial blind spots you didn’t even know existed.

We will hold your [perfectly manicured] hand through every step of the process.

Starting here.

HOW CAN WE HELP YOU ACHIEVE YOUR GOALS?

  • The Beauty Bookkeeping Course

    Learn QuickBooks for Beauty Pros so you can pay yourself consistently and never be surprised by a tax bill. This is the class that Beauty School should include, but doesn’t. Perfect for new stylists who are learning the ropes.

  • Concierge CPA Services

    Luxury done-for-you services where we take care of all your accounting needs

  • Clarity Call

    This is a 55 minute, intensive one-on-one consultation to take you from confused to crystal clear on your financial questions

Michelle Cook | Beauty CPA

smallbusinesscpa

🤓Team of beauty accountants
👩‍💻DIY Bookkeeping course for Beauty Pros
💎Concierge CPA services for US Based Beauty Pros
What questions do you have about 1099s? Jump to my What questions do you have about 1099s? Jump to my stories and fill out the question box. I’ll be answering all your 1099 questions and saving the responses to a highlight.
Small business owners are getting their worlds roc Small business owners are getting their worlds rocked in 2024 and it's not the IRS' fault this time. Starting January 1, 2024, LLCs and Corporations (including S-Corporations) have to report who their owners are to the U.S. Treasury Department’s Financial Crimes Enforcement Network, affectionately referred to as FinCEN. The bad news: The penalties for late or non filing for this report are almost unbelievable for small businesses. The fines are $500 PER DAY up to $10,000. The good news: If your LLC or Corporation existed before 1/1/2024, you have a full year to complete the filing. More good news: It's pretty quick to file. I did mine on 1/1 so I could guide you through the process. It took about 20 minutes to go through the whole thing. Extra good news: I took screenshots the whole way so that I could share them with you so you could easily do the filing. Extra extra good news: This handy pdf with step by step instructions is absolutely free and can be found on my blog, which you can find in my links. This is my new year's present to you! If you'd like more info about this whole thing, I wrote a super detailed blog answering everything we know, specifically for beauty businesses.
Be careful about how long you go between logging i Be careful about how long you go between logging into your QuickBooks if you DIY your bookkeeping. Sometimes banks disconnect from QuickBooks and you need to go in an re-authorize them. If you don’t reconnect within 90 days (for most banks) then when the account does get reconnected, you’ll be missing transactions. This means you’ll have to do some extra leg work to manually import the missing transactions. So, save yourself from the headache and make sure you’re doing your books every month. #hairstylistlife #estheticianlife #SanDiegohairstylist #dallashairstylist #austinhairstylist #houstonhairstylist
Before the year is over, make sure to check your d Before the year is over, make sure to check your details with your point of sale software so they can issue you an accurate 1099-K. Make sure: 1️⃣ You’re using your business’ EIN and not your social security number (This applies is you own an S-Corp or LLC. Sole props can use their SSN). 2️⃣ Make sure the name matches your business name. 3️⃣ Confirm your address. A few minutes can save you headache and confusion down the road.
The beauty industry is majorly uninsured. The sad The beauty industry is majorly uninsured. The sad part is that many beauty pros would qualify for free or highly subsidized health insurance premiums through healthcare.gov If you want health insurance next year, sign up by December 15th. The system will ask you what you expect your income to be and will provide you with options based on your income. Friends, health insurance isn’t cheap. Without subsidy, it can easily cost $20k/year to cover a family. But the good news is that if your income is below certain thresholds, you can get tax credits to help you pay for it. If you need insurance, please make sure to sign up by Dec 15th. If you don’t sign up by Dec 15th, you’ll lose the opportunity to get tax credits to help you pay for the premiums next year.
🚨If you run payroll in your Beauty business, ma 🚨If you run payroll in your Beauty business, make sure to keep an eye out for a letter from state this time of year. If you have a new Unemployment tax rate, your state will notify you before the end of the year. Make sure you share that letter with your payroll processor so your withholdings will be accurate next year. If you’re looking for a new payroll processor, I highly recommend Gusto. You can sign up using the link in my bio and get a $100 gift certificate. Full disclosure: I get a gift certificate too. 😊 It’s a win win. Here’s why I use Gusto for my business: 1. Easy to use interface 2. Takes less than 5 minutes to run payroll for my team of 10 3. Accurate payroll tax withholdings and filings. They make it so easy
Debt is not inherently bad. Let me explain. Debt Debt is not inherently bad. Let me explain. Debt allows you to grow your business faster than you would be able to alone. Debt also comes at a cost. That’s why it’s important that when you take out debt, you use it to purchase assets or investments that will be able to repay the cost. Let’s say you want to expand your salon. Opening a new location with 4 additional stations comes up as an opportunity. Should you take out the debt to do it? Maybe! Here’s what you need to find out: 1) How much additional revenue will this location produce compared to my current location? 2) What additional expenses will I take on? 3) How much will the monthly debt payment be? If the additional revenue minus the additional expenses minus the debt payment comes out to a positive number, that’s when you have something worthwhile to consider. #hairstylistlife #hairstylistgoals #sandiegohairstylist #houstonhairstylist #dallashairstylist #austinhairstylist #orlandohairstylist
Ever felt like your tax bill didn’t make any sen Ever felt like your tax bill didn’t make any sense? Or that your profit wasn’t even close to the cash in your bank account? One possible reason for this is your bookkeeping could be missing information. When you open a new bank or credit card account, QuickBooks or your bookkeeper don’t know unless you tell them. Make sure you have all your bank and credit card accounts connected to QuickBooks before year end so you don’t discover this mistake after you get your taxes prepared! #beautyprofessional #hairstylistlife #sandiegohairstylist
If your beauty business will have $50k in profit b If your beauty business will have $50k in profit by the end of the year, you need to get started on making an S-Corp election. You must get this set up before the end of the year so that it’s done properly. Here are some tips: 1) Make sure you have a reasonable salary before year end 2) Make sure your profit is strong so you get the tax benefits 3) Set up an accountable plan so you don’t lose out on your mileage and home office deductions There’s a lot of stuff beauty pros can DIY, but this isn’t one that I recommend doing on your own. Work with your accountant so you know you’re set up correctly. And if you need some help, please reach out. We’d love to assist.
It's as easy at that, friends. 😂⁠ ⁠ The onl It's as easy at that, friends. 😂⁠ ⁠ The only sure fire way you can consistently have a $0 tax bill is to never make any money.⁠ ⁠ Now obviously we all want to make a profit in our business. ⁠ ⁠ So, may I propose a shift in mindset? Instead of wanting to pay $0 in taxes, focus on growing your business as strong as you can. ⁠ ⁠ The more you grow, the more opportunities there are to set up tax savings strategies.⁠ ⁠ That doesn't mean you won't ever pay taxes. It simply means that you'll be able to pay the least amount of taxes you're required to. ⁠ ⁠ And, until you're a billionaire, that's about the best you can hope for. ⁠ ⁠ Estimated taxes are due next month, so please do yourself a favor and start saving up. ⁠ ⁠ Not sure how much to pay? Check out the link in my bio for a FREE estimated tax calculator.⁠ ⁠ Want to brag about having a massive tax bill? I'd love to hear about it ⬇️⬇️⬇️!⁠ ⁠ ⁠ #ittakesapro #hairstylistproblems #licensedtocreate #behindthechair #haircoach #haircrush #salonowner #beautybiz #instahair #beautyguru #haireducation #estheticiansupport #butterflyhair #independentstylist #beautylife #beautylash⁠ #skincareprofessional #haircolor #hairbiz #hairstylist #sandiegohairstylist #beautyindustry #maneinterest #americansalon #modernsalon #mastersofbalayage #thebtcteam #salonbusiness #esthetician #hairstylistcoach
Many beauty pros want to do tax planning because t Many beauty pros want to do tax planning because they don't have the cash to cover their tax bill. Been there?⁠ ⁠ Let me help.⁠ ⁠ In *most* cases, tax planning involves making additional purchases before you see a savings. ⁠ ⁠ For example, when you set up an S-Corp, you need to pay for the initial set up and payroll. ⁠ ⁠ When you contribute to an IRA, you have to fund the IRA account. ⁠ ⁠ When you purchase additional equipment, well, you get the idea. ⁠ ⁠ You see how you have to spend before you get a savings?⁠ ⁠ Now, let's take this one step further. ⁠ ⁠ Let's say you contribute $6,500 to an IRA and are in a 25% tax bracket. That $6,500 contribution will save you $1,625 in taxes. So, in order to lower your tax bill by $1,625, you have to spend $6,500. ⁠ ⁠ That's why tax planning is the best fit for those who have extra cash AND want to save on taxes. ⁠ ⁠ Ready to start saving? Book a discovery call for our one on one services. Link in bio.⁠ ⁠
Before you close a business bank account, make sur Before you close a business bank account, make sure to download all your statements! This is essential for: 1) Reconciling your books so you can file your taxes 2) Keeping proper business records. Save those statements for 7 years! One more tip. If you’re going to close an account, get all your auto drafts switched over and then wait a couple months. That way if you missed moving a charge over, you won’t have to lose service on any of your critical business subscriptions. Have you ever switched business bank accounts? How was the process?
Feeling overwhelmed or unsure about managing your Feeling overwhelmed or unsure about managing your beauty business finances? I have the perfect thing for you. I’ve teamed up with @glossgenius to create a Financial Empowerment workshop just for Beauty Pros. Best part is it’s free! Unlock 🔑 your full potential 🎉 and exceed your financial goals 💸 with Beauty Business CPA Michelle Cook and GlossGenius’ Head of Payments, Raj Siyasena! Come for best practices, stay for retirement planning, healthy financial habits, tips for navigating tax season, and easy ways to maximize your savings 💰🏫 Registration link in bio! Disclaimer: Please note that the advice provided during the event is of a general nature and should not be considered personalized financial advice. Attendees are responsible for their own financial choices and should consult with a professional financial advisor for personalized guidance.
As an independent hair stylist this question may h As an independent hair stylist this question may have come across your mind. It’s definitely something to think about, because hair extensions are a product, but yet, you as the stylist apply them as a service. So…. Are hair extensions considered retail or a service?⁠ ✨ Answer: A bit of both. ⁠ ⁠Sales tax around hair extensions is widely misunderstood. Part of that is because each state has different rules about sales tax, but in general, here's how most states treat hair extensions.⁠ ⁠First let's talk sales tax in general: ⁠ The final user of a product is who pays sales tax. ⁠ Example: When you use shampoo for back bar, you pay sales tax. If you sell that same shampoo to the client for use at home, the client pays sales tax. Repeat 👏 after 👏 me 👏: The final user pays the sales tax.⁠ ✨ In the case of hair extensions, the client will always be the final user. ⁠ ✨ When a client only buys the hair, it's a straightforward transaction. You charge sales tax on the full price.⁠ 🙋‍♀️ But what about when the hair is sold as a package with the install service?⁠ 👉️ In most states, the hair is still taxable, but the service is not (make sure to check the rules in your state). That means you'll need to allocate an amount of the install as the purchase price for the hair and collect sales tax on it. ⁠ ⁠Remember, regardless of whether or not you collected the sales tax from your client, your business still owes the tax. It's important for you to ensure you're collecting it from your clients so you aren't on the hook. Hair extensions are expensive and the sales tax on that can add up fast.⁠ Are hair extensions a service your beauty business offers? Do you usually offer them as a package or a la carte purchase? Let me know in the comments! . . . #ittakesapro #hairstylistproblems #licensedtocreate #behindthechair #haircoach #haircrush #salonowner #beautybiz #beautyguru #haireducation #estheticiansupport #butterflyhair #independentstylist #beautylife #beautylash⁠ #skincareprofessional #haircolor #hairbiz #hairstylist #sandiegohairstylist #beautyindustry #maneinterest #modernsalon #mastersofbalayage #thebtcteam #salonbusiness #esthetician #hairstylistcoach
I'm not talking about taxes here and what's tax de I'm not talking about taxes here and what's tax deductible. I mean, have you ever had a dilemma where you weren’t sure if a purchase would be a wise decision for your business or not?⁠ ⁠ ⁠The decision process is different than with personal expenses and it can be easy for a new business owner to use that same process in their business.⁠ ⁠ ⁠But the process is really quite simple. Ask yourself: ⁠ ⁠ ✨ Will this purchase allow me to make more money than I would otherwise make?⁠ ⁠ ⁠That means, will the purchase allow you to work faster, attract and retain your ideal clientele, keep yourself in better health so you can have a longer career, or charge a higher price? ⁠ ⁠ ✨ If you can't answer yes to these questions, then you might want to reconsider if it really makes sense to make the purchase. ⁠ ⁠ Business expenses should all be investments that you hold accountable to give you a return. ⁠ ⁠ Any purchases you're currently on the fence about? Let me know in the comments!⁠ .⁠ .⁠ .⁠ #ittakesapro #hairstylistproblems #licensedtocreate #behindthechair #haircoach #haircrush #salonowner #beautybiz #instahair #beautyguru #haireducation #estheticiansupport #butterflyhair #independentstylist #beautylife #beautylash⁠ #skincareprofessional #haircolor #hairbiz #hairstylist #sandiegohairstylist #beautyindustry #maneinterest #americansalon #modernsalon #mastersofbalayage #thebtcteam #salonbusiness #esthetician #hairstylistcoach
Any beauty pros out there who use QuickBooks and u Any beauty pros out there who use QuickBooks and utilize the bank feeds feature?⁠ ⁠ ✨ Personally, bank feeds is my favorite feature. It automatically downloads your bank transactions to save you TONS of time doing data entry. ⁠ ⁠ 📣 Buuut...this feature has a tendency to stop working occasionally, often because of security features at the bank.⁠ ⁠ Some banks are worse than others, but I can guarantee at some point you will need to reconnect your bank account to QBs.⁠ ⁠ ⁠Usually it's no big deal. ⁠ ⁠ ✨ Login to your account.⁠ ✨ Go to the banking section.⁠ ✨ Click the "reconnect account" button,⁠ ✨ Enter your login credentials and make sure you choose the correct bank account in your chart of accounts to reconnect it to⁠ ⁠ ⁠Sometimes it is a big deal.⁠ ⁠ ⁠When you reconnect your account, most banks will only download the last 90 days of transactions. So, if you've been neglecting your bookkeeping for a few months 🙋‍♀️, not all of the transactions are going to automatically download.⁠ ⁠ ⁠That means you have to manually import all the missing transactions. ⁠ ⁠Have you ever had a QuickBooks bank account disconnect? Did you catch it in time?⁠ .⁠ .⁠ .⁠ #ittakesapro #hairstylistproblems #licensedtocreate #behindthechair #haircoach #haircrush #salonowner #beautybiz #instahair #beautyguru #haireducation #estheticiansupport #butterflyhair #independentstylist #beautylife #beautylash⁠ #skincareprofessional #haircolor #hairbiz #hairstylist #sandiegohairstylist #beautyindustry #maneinterest #americansalon #modernsalon #mastersofbalayage #thebtcteam #salonbusiness #esthetician #hairstylistcoach
You're booked out for months and it feels like som You're booked out for months and it feels like some extra help would majorly impact your stress levels. Are you ready to bring on an assistant or another stylist? ⁠ ⁠ ⁠My first question: Can you afford that help? ⁠ ⁠ ⁠Once you hire an employee, you become second in your business. Employees are a heavy responsibility and if there's a cash flow issue, guess who gets paid last? Yup, you. ⁠ ⁠ ⁠That's why hiring too soon without the client demand to support the employee can quickly kill your business. ⁠ ⁠ ✨ So what do you do when you have an extra $30k or $50k in revenue and you're sinking trying to keep up with everything? Try hiring on a part-time basis. This can give you the relief you need without cash strapping your business. ⁠ ⁠ ✨ If hiring an employee scares you, consider raising your prices instead. You'll naturally cut down on the number of people you serve while still making more. And then when you are ready to make that hire, you'll ensure you've priced in an appropriate profit.⁠ ⁠ Where are you in your beauty business journey? Are you looking to take on a new employee or re-work your service prices? Let me know in the comments!⁠ .⁠ .⁠ .⁠ #ittakesapro #hairstylistproblems #licensedtocreate #behindthechair #haircoach #haircrush #salonowner #beautybiz #instahair #beautyguru #haireducation #estheticiansupport #butterflyhair #independentstylist #beautylife #beautylash⁠ #skincareprofessional #haircolor #hairbiz #hairstylist #sandiegohairstylist #beautyindustry #maneinterest #americansalon #modernsalon #mastersofbalayage #thebtcteam #salonbusiness #esthetician #hairstylistcoach
Have you ever applied your makeup without a mirror Have you ever applied your makeup without a mirror? Sure, you might have gotten it done well enough. But we all know that if you want a stunning result, you need to be able to see what you’re doing. In other words, make-up application is way better with a mirror! Just like running a business is WAY better when you know your numbers. And that’s where the profit and loss report comes in. Understanding your profit and loss is the difference between having a successful business and barely making it. ⁠ You work hard. You're tired. It feeeels like you should be making money, but if you're not watching your profit and loss, you might be losing money. ⁠ ⁠That's the crazy thing about money. It's like water. If you don't direct the flow, it goes through the path of least resistance. Buying every upsell, clicking on every ad, investing in every opportunity that looks enticing, but not holding yourself accountable to follow through. ⁠ ⁠Business decisions have to be made based on facts and those come from your profit & loss. Here are some things your profit & loss can tell you.⁠ ✨ How much to pay yourself⁠ ✨ How much profit you're making. If you're independent and making less than a 50% profit, you need to make changes. 20% for a commission or booth rental salon.⁠ ✨ Are you actually making money from selling retail?⁠ ⁠This is why you need to do your bookkeeping more than once a year at tax time and categorize all your transactions so QuickBooks can create a Profit & Loss report for you. Not only does my Beauty Bookkeeping course go through QuickBooks set up, specifically for Beauty Businesses, but it also covers, entering your transactions, using the mobile app, AND understanding how to pay yourself. Link in my bio! . . . #ittakesapro #hairstylistproblems #licensedtocreate #behindthechair #haircoach #haircrush #salonowner #beautybiz #instahair #beautyguru #haireducation #estheticiansupport #butterflyhair #independentstylist #beautylife #beautylash⁠ #skincareprofessional #haircolor #hairbiz #hairstylist #sandiegohairstylist #beautyindustry #maneinterest #americansalon #modernsalon #mastersofbalayage #thebtcteam #salonbusiness #esthetician #hairstylistcoach
Can you recall a time when a client has reached ou Can you recall a time when a client has reached out past, let's say…8pm? How did you feel? Contrary to popular opinion……I think clients should be able to call/text whenever is convenient for them! Before I get blasted, let's talk. You're a new stylist, have a few clients and a tiny income so you decide to use your personal phone for business. You start to grow and have 100-200 clients with your number and spending all your free time navigating calls, messages, & DMs. It's A LOT and the first reaction is to feel resentful. Do they not realize this is my off time? I'm trying to eat dinner/be with family/binge watch trash TV. From the client's perspective, they're working all day and the service you provide them is a luxury. It's convenient for them to reach out in the evenings & weekends. It's in your best interest to let them call/text right when something is on their mind. How do you offer the kind of customer service your clients need without getting burned out? It's certainly not by seeing the text and ignoring it until the next business day. It's hard to see a message from a client and NOT think about it, even if you don't answer immediately. We're not programmed that way, unless you're a sociopath, of course. 😂 ✨ The answer is simple. Get a separate phone for business and put it away when you're not working. Set up auto reply for text messages that informs clients you received the message and will respond during your office hours. Boom, they're comforted knowing you got their message and when they can expect to hear back. Cell phones aren't too pricey in the grand scheme of things. You might pay $700 for the phone upfront, but it should last AT LEAST 3 years or more. From there, it's $50/month for a basic plan. ✨ It's good to prioritize mental health & that starts with being willing to purchase resources that help! I used to have one phone for everything and eventually found that I couldn't turn my brain off. If you can relate, it's time to make a change too. It's better for you & your clients. Bonus points if you use online booking & eliminate tons of back & forth texting! What’s your experience with responding to clients? Tell me below!
If you are an independent beauty professional, you If you are an independent beauty professional, you’re definitely in need of both a bookkeeper and an accountant for your business. You can’t just pick one because they provide two entirely different services! ⁠ ⁠ Yes, bookkeepers and accountants fall under the same umbrella, but think of it like an esthetician and a dermatologist. They both are experts in the same field, but the focus and level of certification is different.⁠ ⁠ ✨ Bookkeepers categorize your income and expenses, reconcile your bank accounts, and provide you with a profit and loss statement. That's about where it ends. ⁠ ⁠ ✨ Accountants can do bookkeeping, but that's not where we spend most of our time. Accountants are more focused on tax returns, tax planning, and forecasting. Forecasting is basically our way of looking into a crystal ball 🔮and predicting the future. Except we use a spreadsheet instead of a crystal ball. 🤓⁠ ⁠ Every business needs to do bookkeeping and tax returns, even if you only have $1,000 in revenue. ⁠ ⁠ Forecasting becomes valuable when you have about $100,000 in revenue and a necessity once you have a full blown business with employees and business loans. ⁠ ⁠ If your business is new, it's fun to look ahead and see what you might be doing in the future, but for now, it's perfectly fine to do your own bookkeeping depending on your business structure - while you're still building. ✨ That's why I created Beauty Bookkeeping so that new beautypreneurs could get the information they needed to stay compliant at an affordable price. ⁠ ⁠ Link in bio to sign up and DIY your bookkeeping! ⁠ .⁠ .⁠ .⁠ #ittakesapro #hairstylistproblems #licensedtocreate #behindthechair #haircoach #haircrush #salonowner #beautybiz #instahair #beautyguru #haireducation #estheticiansupport #butterflyhair #independentstylist #beautylife #beautylash⁠ #skincareprofessional #haircolor #hairbiz #hairstylist #sandiegohairstylist #beautyindustry #maneinterest #americansalon #modernsalon #mastersofbalayage #thebtcteam #salonbusiness #esthetician #hairstylistcoach
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