DTC brands
Books and taxes for baby and kids product brands.
A registry payout that lands weeks late, a safety recall, a dozen sizes of one onesie, and a parenting influencer's review box. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
March came in at $9,000. The onesie batch cleared its snap testing, so I kept that fee under compliance testing, not supplies.
- Shopify Payments payoutSite sales
- Amazon registry payoutMarketplace sales
- Juvenile Products Testing LabSafety compliance testing
- SnugFit Manufacturing invoiceContract manufacturing
- Google Shopping adsAdvertising
Why your books are different
A baby and kids brand's books go wrong around safety, sizing, and gifts.
A generalist sees deposits and bills. Your business is safety testing most products never need, a dozen sizes of one style, and a registry gift that ships weeks after it was chosen. When the books do not know that, the real cost of the business hides.
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1
Safety testing costs more here than in most categories
A product marketed for children under 12 needs testing most other consumer goods do not, and if that fee gets buried as a generic supply cost, the real cost of getting a product to market stays hidden.
What we doKeeps safety and compliance testing in its own line, so you know what clearing a product for sale actually costs. -
2
A recall is not just a refund
If a batch has to be pulled for a safety issue, the cost is not only the refunds, it is also the product destroyed, the shipping to bring it back, and sometimes a free replacement sent out.
What we doBooks every part of a recall as its own cost, tied to the batch, so the real cost of a pull is visible, not just the refunds. -
3
Age and size ranges multiply one product into a dozen SKUs
A single onesie style sold in six sizes from newborn to 24 months becomes six separate items to track, and if the books only see one product, nobody can tell which size range actually sells.
What we doRolls sales up by style so you can see which sizes move, without tracking every size as its own line in the books. -
4
Registry sales pay out differently than a direct sale
A gift bought through a baby registry sometimes ships weeks after it is added and pays out on the retailer's own schedule, not the day it was chosen, which can make growth look like cash you already have.
What we doMatches a registry sale to the payout it actually generates, so a registry addition is not mistaken for cash already landed. -
5
Free samples for a parenting influencer are marketing, not lost inventory
Sending a car seat or a set of onesies to a parenting influencer for a review is common, and if that product is not pulled from inventory as a cost, unsold stock looks bigger than it really is.
What we doBooks influencer product as a promotion cost, out of inventory and out of revenue.
Your categories
The categories Gus keeps for a baby and kids 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.
- Marketplace and registry salesAmazon sales, matched to the payout they actually generate.
- Wholesale to baby boutiquesBulk orders billed direct, kept apart from retail sales.
- Subscription setsRecurring clothing or gear boxes, if you run one.
Money out
- Contract manufacturingThe factory that produces each style and size run.
- Safety and compliance testingTesting required for products marketed to children.
- PackagingBoxes, gift wrap, and inserts.
- AdvertisingMeta and Google ad spend driving traffic to listings.
- Influencer seedingProduct sent to parenting influencer accounts for review.
- Card and marketplace feesWhat processors and marketplaces keep before you get paid.
- Product liability insuranceCoverage that matters more for products made for kids.
What we watch for you
- Cost per style
Testing, materials, and production against units sold, rolled up by style, not by every size.
- Recall cost, if any
Refunds, destroyed stock, and replacements tied to one pull, so the real cost is visible.
- Registry to payout lag
How long a registry pick takes to become cash, so growth does not look like money already in hand.
- The set-aside
What you will owe, tracked from payouts that have actually landed.
Ask Gus
Things baby and kids 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.
No, that is a promotion cost. I pull it from inventory and keep it out of revenue, so your numbers reflect only what customers actually paid for.
More than the refunds. I book the destroyed stock, the return shipping, and any free replacements together, tied to that batch, so you see the full cost of the pull.
When the retailer actually pays out for it, not when it was added to the registry. I match the payout to the sale so nothing counts as cash before it lands.
The tax side
The tax side of a baby and kids brand.
Most of what goes wrong here is timing and labels. A registry sale counted too soon, a recall cost split into pieces, and a set-aside nobody started until the return was due.
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 in the warehouse. A finished run of one size waiting to ship is an asset until it does, not a write-off the day the invoice is paid.
- 1099-K from marketplaces and processorsAmazon and Shopify Payments report your volume to the IRS once you cross $20,000 and 200 transactions in a year, and registry sales are taxable the same way once the payout actually lands.
- 1099-NEC for contractorsA freelance photographer, pattern designer, or parenting influencer paid $2,000 or more in a year who is not on payroll gets a 1099-NEC by January 31.
- The pass-through deductionUp to 20 percent of qualified business income is deductible for most owners, phasing down above $201,750 single and $403,500 joint. Getting the full benefit depends on registry payouts and recalls being booked correctly throughout the year.
Deductions baby and kids product brands miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Safety and compliance testing
- Contract manufacturing
- Packaging and gift wrap
- Meta and Google ad spend
- Parenting influencer seeding
- Product liability insurance
- 3PL fulfillment fees
- Baby expo booth fees
- Listing photography
- Card and marketplace fees
- Trademark and brand registration
- Recall and safety pull costs
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
A baby and kids brand's year, kept every month.
Registries and gifting drive sales all year, not just around the holidays. Your team is on the books every month, whenever a gift is chosen. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Holiday gifts settle
Holiday gift returns and gift card redemptions settle down, right as last year's return needs to get moving. Gus keeps the set-aside running so nothing surprises you later.
- April
Filed, no surprises
The accountant files and signs the return, registry sales and all. The set-aside has been building since January, so the bill holds no surprises.
- July
Registry check
A common time to check how registry sales are actually converting to cash and whether a size range needs a rethink.
- October
Gift sets built
Holiday gift sets get built and priced ahead of the rush. Gus looks at packaging and testing timelines so nothing holds up a launch.
What you get
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 baby and kids product 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 baby and kids brand owners ask first.
Do I need special certification to sell baby products?
That is a regulatory question, not a bookkeeping one, so Gus does not advise on safety certification. He does keep every testing invoice organized, so paperwork is ready when you need it.
How does Gus track a product that comes in six sizes?
Sales get rolled up by style so you can see which sizes actually move, without turning every size into its own line in the books.
We had to recall a batch for a safety issue. What happens on the books?
Gus books the destroyed stock, return shipping, and any free replacements together, tied to that batch, so the real cost of the pull is visible, not just the refunds.
A registry gift shipped weeks after it was added. When does that count as a sale?
When the retailer actually pays out for it, not when it was chosen. Gus matches the payout to the sale so nothing counts as cash before it lands.
Do samples sent to parenting influencers count as an expense?
Yes. It is a promotion cost, not a sale, and Gus keeps it out of revenue so your numbers reflect what customers actually paid for.
My books are behind because we just added new sizes and colors.
Send your bank statements and product list. Gus sorts through the new lineup 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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What makes a bookkeeper worth paying for Every business we keep books for
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