Standing on Business: Insights from The Barber's Tax Playbook

Financial expert Jennifer Drew (@thehairceo_) shares tax strategies and money management tips tailored for barbers. From tracking income to maximizing deductions, learn how to treat your craft like the business it is and build long-term financial stability.

You're not just cutting hair—you're running a business.

Yet, many barbers overlook the financial side of their craft, leading to missed opportunities for growth and wealth-building.

theCut, in partnership with Anti-Broke Barbers Club, hosted The Tax Playbook for Barbers. This masterclass provided expert insights on financial literacy, tax strategies, and business growth for barbers.

Our featured guest, Jennifer Drew (@thehairceo_), is a financial expert dedicated to helping barber and beauty professionals take control of their finances. Alongside host Rey Brotherhood, she shared essential tax-saving strategies and practical advice to help barbers keep more of their hard-earned money.

The #1 Financial Mistake Barbers Make

Many barbers wait until the last minute to think about taxes, leading to unnecessary stress and missed deductions. One of the biggest mistakes? Not tracking expenses properly.

Jennifer shared her story of struggling to buy a house despite running a successful salon. Like many in the industry, she was taught to minimize taxable income by writing off as many expenses as possible.

But this backfired when lenders saw low reported income and denied her a mortgage. Her takeaway: You need to balance deductions with proving income for major financial moves.

How to Track Your Money Like a Pro

Barbers must stay on top of their income and expenses year-round to avoid tax season headaches. Here’s how:

Track Income: Using theCut app helps document earnings, but it’s crucial to track all revenue streams, including cash and alternative payment methods. (Pro Tip: accept all your payments through theCut app to minimize administrative work.)
Monitor Expenses: Use a business credit or debit card for all purchases to simplify bookkeeping.
Separate Finances: Open a business bank account to avoid mixing personal and business transactions.
Use Accounting Tools: Options range from spreadsheets to professional accounting software like QuickBooks or hiring a bookkeeper to manage finances efficiently.

What Can Barbers Write Off?

Maximizing deductions is key to keeping more money in your pocket. Here are common barber write-offs:

Business expenses: Clippers, chairs, products, and rent, as well as booking app subscription and transaction fees.
Marketing costs: Website, social media ads, business cards.
Education: Training, certifications, and industry events.
Client perks: Gift cards, promotions, and referral incentives.

What isn’t tax-deductible?

Personal meals (unless treating a client for business).
Everyday clothing (even if you only wear it to work).
Non-business-related entertainment expenses.

Jennifer’s rule of thumb: Every expense should save money, add value, or make money for your business.

Booth Renter vs. Employee vs. Shop Owner: Know Your Tax Status

Your tax obligations depend on how you operate:

Employees have taxes withheld and receive a W-2.
Booth Renters are self-employed and must pay their taxes quarterly.
Shop Owners handling payroll must properly classify workers and issue 1099s or W-2s as required.

Shop owners should consider whether to structure their business as an LLC or S-Corp for potential tax benefits.

How to Get Paid (or Pay Yourself)

Self-employed barbers should transfer earnings from their business account to their personal account regularly.
LLC owners should avoid putting themselves on payroll unless they elect S-Corp status.
Paying yourself properly ensures you can qualify for loans, credit, and major purchases like a home or car.

Master Your Money and Take Control of Your Business

Running a barbering business requires more than just skill with the clippers—it demands financial discipline. Key takeaways from the masterclass:

Track your earnings and expenses diligently.
Separate personal and business finances.
Understand tax deductions and plan for quarterly payments.
Treat your business like a business, not just a hustle.

Watch the complete masterclass recording below to discover these insights and hear direct advice from Jennifer! We also recommend collaborating with a tax professional to fully understand your unique situation.

Want to keep learning? Follow Jennifer (@thehairceo_) for more financial tips, and stay tuned for future masterclasses with theCut.

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