Equipment & specialty rentals

Books and taxes for costume rental shops.

Halloween season walk-ins, community theater and school contracts, refundable deposits, and dry cleaning between rentals. Gus keeps every rack straight, 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
OctoberExample month
$33,100
what you made

October came in at $33,100. I kept your seasonal Halloween staff pay apart from your regular tailor's wages, since one is a busy-month surge and the other runs all year.

  • Halloween walk-in rentals, registerSeasonal costume rentals
  • Community theater contractTheater and school contracts
  • Dry cleaning service, monthlyCleaning and alterations
  • Seasonal staff wages, OctoberSeasonal labor
  • Costume inventory buy, fall orderInventory and equipment
Money in$76,200
Money out$43,100
Set aside for taxes$9,500
An example month. Yours will have your numbers.

Why your books are different

Costume rental books go wrong in the same four places.

A generalist sees deposits and bills. Your business is a rack that turns over constantly in October and steadily the rest of the year for theater and school groups, deposits that come back most of the time, and alterations that eat into every rental. When the books miss that, October hides the rest of the year.

  1. 1

    Refundable deposits get booked as income

    Cash collected at pickup as a security deposit on a costume often lands in the same deposit as the rental fee, so it inflates that week's sales and looks like a loss when most of it goes back to the customer.

    What we doKeeps deposits as money not yet earned, and only counts them as income when kept for damage or a late return, so the real sales for the month stay accurate.
  2. 2

    Dry cleaning and alterations blur together

    A costume that needs a quick hem and one that needs full dry cleaning between rentals both get paid for out of the same account, so you cannot tell whether alteration labor or cleaning costs are eating more of a rental's price.

    What we doKeeps cleaning and alteration costs in their own line so you can see which one is actually cutting into your margin.
  3. 3

    Seasonal Halloween staff blur with year-round tailoring wages

    A shop that hires extra help just for October and keeps a tailor on all year can lose track of which labor cost belongs to the seasonal rush and which one is a steady year-round expense.

    What we doKeeps seasonal labor apart from year-round wages so a big October payroll does not get mistaken for a spike in your regular costs.
  4. 4

    A pre-Halloween inventory buy wrecks a late-summer month

    Restocking new costumes and accessories ahead of the season is often one large order in August or September, and filed as a plain expense it can make that month look like a loss right before your biggest one.

    What we doFlags a seasonal inventory buy as it happens and tells you when a stock-up, not a slow month, is the reason the number looks thin.

Your categories

The categories Gus keeps for a costume rental shop.

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

Money in

  • Seasonal costume rentalsHalloween walk-in traffic, your biggest stretch of the year.
  • Theater and school contractsCommunity theater productions and school play costume packages.
  • Year-round party rentalsBirthdays, corporate events, and themed parties outside of October.
  • Retail accessory salesWigs, makeup, and props sold outright rather than rented.
  • Deposits keptDeposit money kept after damage or a costume not returned.

Money out

  • Cleaning and alterationsDry cleaning, hemming, and repairs between rentals.
  • Seasonal laborExtra staff hired just for the Halloween rush.
  • Year-round wagesYour regular tailor or shop staff paid all year.
  • Inventory and equipmentNew costumes, wigs, and props added to the rack.
  • Shop rent and utilitiesStorefront lease, electricity, and heat.
  • Local advertisingLocal search ads and seasonal signage.
  • Point-of-sale softwareRegister and rental tracking tools like Square.

What we watch for you

  • October revenue share

    How much of your year comes from Halloween alone. It shows how much the rest of the year needs to cover.

  • Cleaning cost per rental

    Dry cleaning and alteration costs against rental income. A rising number may mean deposit or pricing needs a look.

  • Theater contract share

    Steady theater and school income against seasonal walk-ins. It shows how dependable the off-season really is.

  • The set-aside

    What you will owe in taxes, tracked through your busiest month and your quietest one, so filing season is not a scramble.

Ask Gus

Things costume rental 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.

Do I owe taxes on the security deposits I collect if most of them get returned?

No, only on the part you actually keep. I hold the rest as money that is not yet earned, so your monthly number stays honest.

I hired six extra people just for October. Does that mess up my regular payroll numbers?

No, I keep seasonal staff pay in its own line, separate from your year-round tailor's wages, so a big October payroll does not look like your costs jumped for good.

Can I write off the big costume order I placed before Halloween?

Usually, yes, though the timing depends on whether it is treated as inventory or equipment for your shop. I flagged the purchase so the accountant makes that call.

The tax side

The tax side of a costume rental shop.

Most of what goes wrong here is deposits counted as income too early, and seasonal help paid off the books instead of through payroll.

What your return has to get right

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

  • Seasonal staff on payrollHelp hired just for October should usually go through payroll like any other employee, not get paid in cash. Getting this wrong is one of the more expensive mistakes a seasonal shop can make.
  • Contractor 1099sA seamstress or dry cleaner not on payroll gets a 1099-NEC if paid $2,000 or more in 2026, due January 31.
  • Inventory versus equipmentWhether new costumes count as inventory or depreciable equipment depends on how your shop is set up. The accountant decides how a big seasonal buy gets treated on the return.
  • The pass-through deductionMost owner-operators can take up to 20 percent of business profit off their taxable income. It comes out right when the books are right all year.

Deductions costume rental shops miss

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

  • Dry cleaning services
  • Sewing and alteration supplies
  • Costume and wig replacement
  • Shop rent and utilities
  • Seasonal signage and ads
  • Point-of-sale software
  • Racks, hangers, and garment bags
  • Makeup and prop restocking
  • Business liability insurance
  • Card processing fees
  • Seasonal staff uniforms
  • Steamers and pressing equipment

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 costume rental year, kept every month.

October carries the year, but theater and school contracts keep the lights on the rest of it. Your team keeps you ahead of both, and of your taxes. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Plan the year

    Last year's return gets started, the 1099 list for any subcontracted alterations help is ready, and you get a monthly set-aside so filing season is already handled.

  2. April

    Filed. Done.

    Your return is filed and signed. No surprise bill, because the set-aside has been running since your busiest month.

  3. July

    Halfway check

    Where you stand, what you will owe, and how last October's rush is shaping up against this year's plans.

  4. October

    The big month, covered

    Seasonal staff pay, a big inventory order, and a flood of deposits all get sorted the same as any other month, so the rush does not become a mess later.

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 costume rental shops. 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 costume rental owners ask first.

Do I pay tax on security deposits if most of them get refunded?

No. Only the part you actually keep for damage or a costume that never comes back counts as income. Gus holds the rest as money that is not yet earned.

October makes up most of my revenue. Does that change how my books work?

No, the categories stay the same all year. Gus does keep seasonal income and seasonal labor visible on their own, so you can see how much the rest of the year needs to cover.

Can I hire seasonal help off the books for October?

Seasonal staff should usually go through payroll, the same as any other employee. Gus flags cash arrangements before they become a costly habit.

My theater and school contracts pay slower than walk-in rentals. Does Gus track that?

Yes. Theater and school contracts are kept apart from seasonal walk-ins, so you can see how dependable that income really is outside of October.

My books from last Halloween are still a mess. Is that a problem?

No. Send over the bank statements from your busiest stretch, messy or not. Gus rebuilds the categories from there, the accountant checks the result, and most owners know where they stand inside 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.

More in equipment & specialty rentals

We keep books for the business next door too.

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