Owning the building for your cosmetology school can be a game-changing investment, but is it the right move for you? In this episode of The Cosmetology School Accounting Podcast, host Desarie Anderson walks you through the critical factors you need to consider before making this major financial decision. Whether you’re currently leasing and thinking about buying in the future or you’re ready to take the plunge now, this episode will provide the roadmap to set yourself up for success.
Desarie reveals the three essential must-haves that every school owner needs before purchasing property:
✅ Good Business Records – Your school’s financial history plays a key role in securing a commercial loan and proving to lenders that you’re a responsible business owner.
✅ Money in the Bank – Cash flow isn’t just about making money; it’s about keeping enough reserves to cover down payments, unexpected costs, and financial stability during lean months.
✅ A Trustworthy Commercial Realtor – Finding the right building is about more than just location. A knowledgeable real estate professional can help you find a property that aligns with your business goals and budget.
If you’ve ever considered owning your building instead of leasing, this episode is packed with insights and strategies to help you make a smart, informed decision.
Owning the building for your cosmetology school can be a game-changing investment, but is it the right move for you? In this episode of The Cosmetology School Accounting Podcast, host Desarie Anderson walks you through the critical factors you need to consider before making this major financial decision. Whether you’re currently leasing and thinking about buying in the future or you’re ready to take the plunge now, this episode will provide the roadmap to set yourself up for success.
Desarie reveals the three essential must-haves that every school owner needs before purchasing property:
✅ Good Business Records – Your school’s financial history plays a key role in securing a commercial loan and proving to lenders that you’re a responsible business owner.
✅ Money in the Bank – Cash flow isn’t just about making money; it’s about keeping enough reserves to cover down payments, unexpected costs, and financial stability during lean months.
✅ A Trustworthy Commercial Realtor – Finding the right building is about more than just location. A knowledgeable real estate professional can help you find a property that aligns with your business goals and budget.
If you’ve ever considered owning your building instead of leasing, this episode is packed with insights and strategies to help you make a smart, informed decision.
What is a 1099?
- Explore the purpose of the 1099 form and why it’s essential for non-employee compensation.
- Learn how the 1099-NEC (Non-Employee Compensation) replaced the older 1099-MISC for services.
Who Gets a 1099?
- Discover which independent contractors and unincorporated vendors qualify.
- Understand exceptions for corporations, law firms, and rental payments.
When to Provide a 1099
- Get clarity on the January 31st deadline for sending 1099s to vendors and filing with the IRS.
- Learn the importance of collecting W-9 forms upfront to avoid hassles.
Why Provide a 1099?
- See how timely 1099 filings keep you compliant and maintain transparency with the IRS.
- Understand how it helps vendors accurately report income and prevents disputes.
Consequences of Not Filing
- Find out how late or missing 1099s can result in fines ranging from $50 to $280 per form.
- See how audit risks and reputational damage can impact your school.
Best Practices for Managing 1099s
- Use accounting software (QuickBooks, Xero) for automated tracking.
- Stay organized with regular vendor payment reviews and proper record-keeping.
- Partner with a CPA for guidance if you’re unsure about compliance.
Common Misconceptions
- Clarify myths like: “I only paid them once,” or “They’re responsible for their own taxes.”
- Understand how payments via PayPal or credit cards fall under 1099-K rules, not 1099-NEC.
Real-Life Scenarios
- Guest instructors, IT consultants, and unincorporated landlords—all need correct 1099 treatment.
- Learn from practical examples to ensure every eligible payment is properly reported.
Pro Tips for a Smooth Tax Season
- Plan ahead, verify information early, and educate your staff on 1099 obligations.
- Leverage technology to reduce errors and time spent manually preparing forms.