A Hair Stylist & A Chelsea, Michigan CPA: How Kayla Borders Simplified the Financial Side of Salon Life
In Michigan, independent salon stylists file taxes as self-employed contractors. They pay a flat weekly or daily rate to rent their chair, keep all income from their services, and purchase their own products and supplies. Every business expense is a potential deduction, and often, the list is longer than most stylists realize when they first make the transition. For salon professionals in the area, finding accountants in Chelsea, MI who understand the chair rental model specifically makes that process considerably more straightforward.
Kayla Borders has been a chair renter at Chelsea Hair Design in Chelsea, Michigan, since January 2021. She has 18 years of experience as a stylist and has built a clientele that keeps her booked four to six weeks out. Kayla has been a client of Agile Accounting since 2022.
As a new small business owner, Kayla knew she would need some help with taxes and began looking for a local CPA in Chelsea, Michigan. She learned about Laura and Agile Accounting from a client who Laura also advises. At their first meeting, Laura went through Kayla's expenses line by line and asked questions about how she runs her business. Several deductions came up that Kayla hadn’t previously tracked, including her phone, which she uses to book appointments and process payments, and credit card processing fees charged through her Square account.
"She pointed out that I use my phone for booking appointments, cashing people out, ordering products, and more, so it’s a deductible expense,” said Kayla.
Additional deductions she had been missing included mileage to and from supply stores, beverages kept in the salon for clients, and equipment and supplies purchased outside her primary vendor.
Kayla tracks her expenses throughout the year in the notes app on her phone, organized by category. At tax time, she prints her notes and organizes everything into a folder, which she brings directly to Laura. Square provides a detailed year-end transaction report that breaks down income and fees by time period.
Her first full year as a chair renter, Kayla earned $10,000 more than any year working on commission.
Kayla has been working with Agile Accounting for three years. During that time, other stylists at Chelsea Hair Design have also become clients. She has referred Laura to her colleagues at the salon and describes the working relationship as straightforward. "I switched over to Laura, and it has been so stress-free," she said. "Every time I reach out, it's more like reaching out to a friend than just doing taxes. She's someone I trust, and I know I can depend on her."
Kayla currently files annually rather than making quarterly estimated payments. She noted that if she were to move to quarterly filings, she would bring those questions to Laura to work through the amounts and timing.
Salon professionals in the Chelsea and Ann Arbor area who are navigating self-employed tax filing, deduction tracking, or quarterly estimated payments can connect with Agile Accounting, a local CPA in Chelsea, Michigan that works with independent stylists and other service-based small businesses. Schedule an Agile Business Health Check at agileaccountingllc.com.