(And Could They Be Sneakily Costing You Money?)**
Picture this: you add a tiny credit card processing fee — $2 here, $3 there — just trying to cover what Visa and Mastercard keep nibbling away from your profits like hungry raccoons. Seems harmless, right?
Except… what if that little fee is actually taxable?
Yes.
Taxable.
As in: you might be charging a $2.50 surcharge and accidentally owe more than that in sales tax.
Welcome to one of the most annoying plot twists in studio finance.
But before you scream into a kiln, take a deep breath — because we’re about to break this down in a way that saves your sanity and your bottom line.
At pyop accounting, we believe your business should support YOU… not surprise-attack you with unexpected tax bills because of a teeny-tiny transaction fee. And your energy is far too valuable for low returns — especially surprises from the Department of Revenue.
You’re running a creative, community-driven studio…
You’re managing events, classes, retail, walk-ins, birthday parties, and the occasional toddler covered head-to-toe in glaze.
The last thing you need is to find out you owe sales tax on money you never even got to keep.
Building a business with strong systems and smooth financial DNA isn’t just helpful — it’s essential. And this small detail can determine whether you’re confidently profitable… or writing checks to the state wondering what just happened.
This is where the chaos begins.
Some states consider credit card fees a taxable service.
Others don’t.
Some tax certain surcharges but not others.
And some states… honestly, I think they make it up as they go.
So your first step?
Check your state’s Department of Revenue rules.
Don’t assume. Don’t guess. Don’t “I heard from another studio owner that…”
Go straight to the source — and document everything.
Names. Dates. Screenshots. Copy-pasted sections from state publications.
(Your future audit-proof self will thank you.)
If you lump the fee into the class price, guess what?
The whole thing can be interpreted as taxable.
Instead, do this:
This simple separation shows transparency, protects you in an audit, and keeps your accounting clean and breathable — like a well-ventilated kiln room.
If you wait until the Department of Revenue sends you a love letter (AKA: an audit notice), it’s already too late.
Studio owners who stay ahead:
Because here’s the kicker:
One tiny reporting mistake can cost thousands.
And not the fun kind of thousands… the painful kind.
You didn’t open a studio to get ambushed by tax rules no normal human could memorize.
You opened a studio to:
But to do that, you need financial clarity baked right into your systems — the kind that prevents tax surprises and keeps your cash flow flowing.
At pyop accounting, we help you stay ahead of these tricky operational details so your studio stays profitable, compliant, and stress-free.
Because your business’s job is to support you… not give you heart palpitations over a $2.50 fee.
Please follow us on Facebook and Instagram. Please make sure to check out our blog and our website link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. You can email me at donna@pyopaccounting.com.
Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.
