DTC brands

Books and taxes for apparel brands.

Wholesale terms, a cut and sew deposit, size exchanges, and a clearance rack at season's end. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
SeptemberExample month
$13,000
what you made

September came in at $13,000. The Faire wholesale payout came in higher than usual, so I split it from site sales to keep both channels honest.

  • Shopify Payments payoutSite sales
  • Faire wholesale payoutWholesale orders
  • Golden Needle Cut and SewContract manufacturing
  • UPS freightFreight and duty
  • Meta adsAdvertising
Money in$58,000
Money out$45,000
Set aside for taxes$2,800
An example month. Yours will have your numbers.

Why your books are different

An apparel brand's books go wrong in a handful of specific spots.

A generalist sees deposits and bills. Your business is sizes, colors, wholesale terms, and a factory deposit that lands months before the shirts do. When the books do not know that, a season that is going fine can look like it is not.

  1. 1

    Size and color multiply one style into fifty SKUs

    A single hoodie style in five sizes and four colors becomes twenty variations, and if the books only track it as one product, no one can see which size or color is actually selling.

    What we doKeeps sales rolled up by style so you can see which sizes and colors move, without tracking every single variation in the books.
  2. 2

    An exchange is not the same as a refund

    A customer who orders a small and exchanges it for a large has not really returned anything, but booking it as a refund and a fresh sale doubles the transaction and inflates your real return rate.

    What we doBooks a size exchange as one transaction, not two, so return numbers reflect actual lost sales.
  3. 3

    A cut and sew deposit lands months before the shirts do

    Paying a factory half up front for a collection that ships eight weeks later can make a slow production month look like a loss, when the goods are simply in transit.

    What we doKeeps a factory deposit as inventory on order, not an expense, until the goods land.
  4. 4

    Wholesale terms mean the cash lags the sale

    A boutique that orders on 30 or 60 day terms creates a sale that will not turn into cash for weeks, and if the books only track deposits, a growing wholesale book can look like it is not paying off.

    What we doTracks wholesale invoices as money owed to you, separate from the cash that has actually landed.
  5. 5

    End of season markdowns eat into a month that looked fine

    Clearing last season's stock at 40 percent off can turn a month with strong unit sales into one with thin dollars, and without a marker for markdowns, it looks like the business slowed down.

    What we doFlags markdown sales as their own line so a clearance month reads as a clearance month, not a slump.

Your categories

The categories Gus keeps for an apparel brand.

Set up once for how you sell and what you spend. You never pick a category. He does, and an accountant checks it.

Money in

  • Site salesFull-price and promo orders through your own storefront.
  • Wholesale ordersFaire and direct boutique accounts, kept apart from retail sales.
  • Marketplace salesAmazon or TikTok Shop, if you sell there.
  • Pop-up and trunk show salesCash and card sales taken in person.

Money out

  • Contract manufacturingCut and sew production for each collection.
  • Fabric and trimsTextiles, zippers, buttons, and thread.
  • Freight and dutyShipping goods in from the factory and across the border.
  • Wholesale sample setsLine sheets and samples sent to buyers.
  • Fulfillment3PL pick, pack, and ship fees.
  • AdvertisingMeta and Google ad spend driving site traffic.
  • Card and marketplace feesWhat processors and marketplaces keep before you get paid.

What we watch for you

  • Wholesale receivables

    What boutiques owe you on terms, so growing orders do not look like cash you already have.

  • Markdown share

    How much of sales came from clearance pricing, so a good unit month does not look thin.

  • Return and exchange rate

    Refunds and exchanges against sales, since sizing issues quietly cut into a strong month.

  • The set-aside

    What you will owe, tracked as wholesale and site sales actually land, not guessed at season's end.

Ask Gus

Things apparel brand owners ask Gus.

Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.

A boutique ordered $4,000 on 60 day terms. Is that in my sales for this month?

Yes, the sale counts now, but the cash lands later. I track what is owed separately so you see it coming without treating it like money already in the bank.

A customer exchanged a small hoodie for a large. Does that count as two transactions?

No, I book it as one exchange, not a refund plus a new sale, so your return rate reflects what actually happened.

We're clearing last season's jackets at 40 percent off. Will that make the month look bad?

I mark those sales as clearance so the month shows you sold through old stock on purpose, not that business slowed down.

The tax side

The tax side of an apparel brand.

Most of what goes wrong here is timing. A factory deposit expensed too early, wholesale sales counted before the cash lands, and a set-aside nobody started until a busy season ended.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Inventory and cost of goodsYou deduct the cost of what sold, not what is sitting on a rack. A collection waiting in the warehouse after a factory deposit is an asset until it ships, not a write-off the day it is paid for.
  • 1099-K from marketplaces and processorsShopify Payments and any wholesale marketplace you sell through report your payment volume to the IRS once you cross $20,000 and 200 transactions in a year. Every dollar is taxable whether or not the form arrives.
  • 1099-NEC for contractorsA freelance pattern maker, photographer, or designer paid $2,000 or more in a year who is not on payroll gets a 1099-NEC by January 31.
  • The pass-through deductionMost owners can knock up to 20 percent off qualified business income, with the deduction phasing down above $201,750 single and $403,500 joint. It depends on wholesale and site sales both being counted accurately throughout the year.

Deductions apparel brands miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Cut and sew production
  • Fabric and trims
  • Freight and import duty
  • Wholesale sample sets
  • Trade show booth fees
  • Lookbook photography
  • 3PL fulfillment fees
  • Meta and Google ad spend
  • Pattern making and grading
  • Hang tags and packaging
  • Card and marketplace fees
  • Trademark filing

General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.

All year, not just April

An apparel brand's year, kept every month.

Two collections a year mean two busy stretches and two quiet ones. Your team is on the books every month in between, not only when a season wraps. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Post-holiday clearance

    Sales wind down into markdown season right when last year's return needs to get moving. Gus tracks clearance pricing and keeps the set-aside going so tax time is already handled.

  2. April

    Return filed

    Your business return is filed and signed, with the set-aside covering the bill since January. No scramble the week it is due.

  3. July

    Fall line prep

    Fall collection production ramps up and factory deposits go out. Gus keeps those payments as inventory on order, not a hit to a summer month.

  4. October

    Holiday stock lands

    Fall and holiday inventory arrives and wholesale orders ship. Gus looks at what is worth buying before the year closes and where markdowns might start.

What you get

Starts at$197a month

What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.

Book a call
  • Monthly bookkeeping

    Every transaction sorted into categories set up for apparel brands. You never categorize a thing.

  • An accountant checks every transaction

    Real review, every month, before your books close. Not a spot check.

  • Your business tax return, filed

    Prepared, reviewed, and signed by that same accountant every year.

  • The monthly number

    What you made, what you spent, what to set aside for taxes.

  • Your own bookkeeper

    A real person assigned to your business, in the app whenever you need them. No hold music.

  • On your books all year

    Every month, not just in April. Your team speaks up whenever something is worth your attention.

  • Cancel any time

    No contract. No cancellation call. Your books are yours.

Straight answers

Questions apparel brand owners ask first.

Do returns for sizing count against me differently than other returns?

Not for tax purposes, but Gus tracks exchanges as one transaction instead of a refund and a new sale, so your actual return rate is honest, not inflated.

I pay a factory a deposit months before the shirts ship. What happens to that money in the books?

It sits as inventory on order until the goods land, not an expense the day you wire it, so a production month does not look like a loss it is not.

A boutique owes me money on 60 day terms. Is that counted as income yet?

The sale counts when the order ships, and Gus tracks what is owed to you separately, so growing wholesale does not look like cash that has not landed yet.

We ran a huge clearance sale to clear last season's stock. Will that look bad on the books?

No. Gus flags markdown sales as their own category, so a clearance push reads as intentional, not as the business slowing down.

Do sample sets I send to wholesale buyers count as a cost?

Yes, they are a cost of getting a wholesale account, not inventory you plan to sell, and Gus keeps them out of your regular unit cost.

My books are a mess after switching factories mid-season.

Send the bank statements and invoices you have from both factories. Gus sorts through the switch and most owners know where they stand within a week.

Is a real accountant checking my books?

Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.

What does it cost, and can I cancel?

It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.

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Book a call

Pick a time. That's the whole signup.

Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.

  • $197 a month to start
  • An accountant on every transaction
  • Cancel whenever