Tracking Expenses 101: Easy Tools to Keep Your Salon Profitable
- Kimberly Sulatycky
- Sep 22
- 2 min read
Running a beauty or wellness business is more than just delivering amazing services—you also need to know where your money is going. Tracking expenses may not feel glamorous, but it’s the foundation of a profitable salon. By knowing what you spend (and where you can save), you’ll make smarter decisions and keep more cash in your pocket.
Small business budgeting.
Why Expense Tracking Matters
Think of expense tracking as your financial roadmap. Without it, you’re driving blind. By monitoring your expenses, you can:
Spot overspending before it snowballs.
Separate fixed costs (like rent and payroll) from variable costs (like supplies and marketing).
Plan for slow seasons by knowing your cash flow needs.
Identify what’s truly profitable in your salon.
Reflect: Do you know how much you spent on retail inventory, backbar supplies, or marketing last month?
Easy Tools to Track Expenses
You don’t need to be an accountant to track expenses—today’s tools make it simple:
Spreadsheets (Google Sheets / Excel)
Great for beginners.
You can customize categories: rent, payroll, utilities, supplies, marketing, etc.
Free and easy to update daily or weekly.
Accounting Software
QuickBooks, Wave (free for small businesses), or FreshBooks can automatically connect to your bank account.
They track income, expenses, and even generate profit & loss reports.
Apps for On-the-Go
Expensify, Mint, or Wave mobile apps let you scan receipts, categorize spending, and track in real time.
Reflect: Which system feels easiest for you to start with right now? Simple spreadsheets or automated apps?
How to Categorize Your Salon Expenses
When tracking, break your expenses into categories:
Fixed Costs: Rent, insurance, utilities, salaries.
Variable Costs: Retail products, salon supplies, laundry, marketing.
Growth Costs: Training, events, new equipment, advertising.
Pro Tip: Compare your expenses against industry standards (e.g., backbar should be ~5–7% of revenue, payroll ~30–40%).
Exercise: Write down your top 3 largest expenses. Are they fixed, variable, or growth-related?
Setting Expense Goals
Once you know where money is going, set expense goals:
Reduce waste (over-ordering products, unused inventory).
Negotiate with suppliers.
Track retail margins (slow movers tie up cash!).
Cap marketing spend but maximize free options (social media, referrals).
Exercise: Pick one expense category you want to lower by 5–10% this quarter. How will you do it?
Track & Reflect
Monthly Expense Snapshot
Total Revenue: _______
Fixed Expenses (total): _______
Variable Expenses (total): _______
Net Profit: _______
Reflection Prompts
Which category takes up most of your spending?
Did this expense directly help you grow your salon (sales, clients, retention)?
What one expense can you cut or optimize this month?
Final Thoughts
Expense tracking isn’t just about cutting costs—it’s about knowing your numbers so you can grow with confidence. Start small: log receipts, use a simple sheet, or download an app. Over time, you’ll see where your money flows and how to maximize every dollar.
Remember: Profit isn’t what you earn—it’s what you keep.
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