Here is a checklist tailored to nail salons to help you gather information and get ready for tax reporting this year, whether you are preparing it yourself or consulting a tax professional. This checklist should be useful regardless if you are reporting your business with the Schedule C as part of for 1040 individual tax return or as a separate business tax return with Form 1120s.
Income
· Gross receipts from sales or services (bank statements or report from point-of-sale system)
· Business checking/savings account interest (1099-INT or statement)
· Other income (if applicable)
Cost of Goods Sold (if you are selling products)
· Inventory
· Beginning inventory total dollar amount
· Inventory purchases
· Ending inventory total dollar amount
· Items removed for personal purposes
Expenses
· Advertising
· Phone lines for nail salon
· Computer & internet expenses (i.e. point of sale system)
· Transportation and travel expenses to industry conferences
· Depreciation
· Cost and first date of business use of assets
· Records relating to personal use of assets
· Cost of new equipment purchased during the year
· Business insurances
· Interest expense
· Mortgage interest on the salon if owned
· Business loan interest
· Professional fees
· Lawyers, accountants, and consultants
· Store supplies
· Nail clippers, nail filers, gloves, acetone etc…
· Rent expense
· Salon space rent
· Cost improve the store
· Wages paid to employees and technicians
· Form W-2 and W-3
· Federal and state payroll returns (Form 940, Form 941, etc.)
· Form 1099-MISC
· Form 1096
· Other expenses
· Repairs, maintenance of office facility, etc
· Estimated tax payments made
· Other business related expenses
