Bookkeeping for salons and booth renters

Split each payout into its parts: service income, product sales, tips and Square's fee, then match the net deposit to your bank. Recording the gross amounts is what makes your income match what Square reports. I set this up once and it stays consistent.

Many booth renters do well with a custom Google Sheet that tracks services, products, booth rent and supplies. It takes minutes a week and hands your tax preparer a clean year. If you grow into a salon with staff, QuickBooks Online is the next step.

For 2026 a payment processor sends a 1099-K once you pass more than $20,000 and more than 200 transactions in the year. Every payment is income either way, so I record them all and your books match what Square reports.

2026 tax year · Source: IRS, Understanding your Form 1099-K

Your tax preparer sets that number. What I give you is the piece they need to set it well: clean, current income and expense totals every month. Owners who see those numbers monthly stop dreading the quarterly question.