Nails, hair, spa. Commission staff, 1099 contractors, booth rent and tips each get their own account, closed every month.
Reconciling and closing are the same everywhere. This is where these books differ.
Renters pay you; commission staff are paid by you. Mix them and sales and labor are both wrong.
A W-9 before the first payment; at year end we check who needs a 1099-NEC.
Cash tips are income. What staff report goes into payroll so the W-2 is right.
These go in your close report every month. Figures are illustrative.
Labor share of services
47.5%Example
Commissions and employer taxes ÷ service sales
Sales per technician
In every monthly report
The basis for commissions, person by person
Card tips paid through payroll
7,420.00Example
The basis for the year-end FICA tip credit
August 2026 books · Example
Nail salon
illustrative example
| Account | Memo | Amount |
|---|---|---|
| Sales (excl. tax and tips) | ||
| Service sales Nails, lashes, spa · per POS sales reports | Nails, lashes, spa · per POS sales reports | 58,240.00 |
| Retail product sales 1 Polish & care products | Polish & care products | 2,860.00 |
| Booth rent received 2 renters × $225/week × 4 | 2 renters × $225/week × 4 | 1,800.00 |
| Total sales | 62,900.00 | |
| Labor & supplies | ||
| Commissions — W-2 technicians 6 staff, through payroll | 6 staff, through payroll | (22,480.00) |
| Commissions — 1099 contractor 2 1 contractor · W-9 on file | 1 contractor · W-9 on file | (3,120.00) |
| Employer payroll taxes FICA on wages and tips, TWC | FICA on wages and tips, TWC | (2,060.00) |
| Nail supplies Gel, acrylic, disposables | Gel, acrylic, disposables | (3,940.00) |
| Cost of retail products | (1,430.00) | |
| Total | (33,030.00) | |
| Operating expenses | ||
| Rent | (6,800.00) | |
| Card processing fees Includes fees on card tips | Includes fees on card tips | (1,890.20) |
| Other operating Utilities, insurance, licenses… | Utilities, insurance, licenses… | (4,210.00) |
| Total operating | (12,900.20) | |
| Net income | 16,969.80 | |
| Labor ÷ service sales | 47.5% | |
| Owed at month-end | ||
| Tips payable 3 7,420.00 card tips in, paid via payroll | 7,420.00 card tips in, paid via payroll | 0.00 |
| Sales tax payable On retail sales, filed on the state’s schedule | On retail sales, filed on the state’s schedule | 235.95 |
For one location, Essential plus payroll, 1099s and sales tax usually fits. With two locations, or for quarterly income-tax planning, Growth is the match.
Essential
Owner-operators who want clean, tax-ready books and every deadline met
from$350/mo
Usually added for this industry
Starting prices. Your final number comes as a written quote after we talk.
We set the scope and the price before anything starts. Then the books are ours.
No commitment. Nothing to prepare.
972-242-2100