Small manufacturers & fabricators
Books and taxes for custom knife makers.
A waitlist deposit, a knife show sale, steel billet and handle material orders, and a heat treat service bill. Your own bookkeeper stays on it all year, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
August came in at $4,700. The knife show table fee and the handful of on-site sales are kept apart, so show income doesn't blur with the waitlist.
- Waitlist deposit, order 47Waitlist deposits
- Blade show sales, cash and cardShow sales
- Damascus billet orderSteel and billet stock
- Heat treat serviceOutsourced heat treat
- Handle material orderHandle materials
Why your books are different
Knife maker books go wrong between the waitlist and the show table.
A generalist sees deposits and bills. Your shop takes a deposit on a knife that will not be finished for months, buys steel billets and handle material for one build at a time, sends blades out for heat treat, and sells some pieces off a show table for cash on the spot. When the books do not track that arc, a waitlist deposit looks like a finished sale and a slow forging month looks like a loss.
-
1
A waitlist deposit looks like a finished sale
A customer pays half down on a custom blade that will not be ready for three or four months, and if that deposit is counted as income right away, the month looks better than it is while the knife still owed goes unseen.
What we doHolds waitlist deposits as money still owed until the knife ships, then moves it to income so the timeline matches reality. -
2
Steel and handle material get bought for one build at a time
A billet of Damascus steel or a piece of stabilized wood bought for one specific knife can get lumped into general supplies, so you cannot tell what that particular piece actually cost to make.
What we doTags steel and handle material to the build they were bought for, so each piece's real material cost is visible. -
3
Heat treat fees look like a routine bill
Sending blades to an outside heat treat service costs real money per batch, and if it is not tracked against the knives it serves, you cannot see whether outsourcing it is actually worth the price.
What we doKeeps outsourced heat treat in its own line so its cost against a build's price stays visible. -
4
Show sales and waitlist orders blend into one number
Cash and card sales off a table at a knife show and a months-long custom order paid by deposit are two very different kinds of income, and lumped together neither shows the real pattern of how the business earns.
What we doKeeps show sales separate from waitlist deposits so you can see how much of the year comes from each.
Your categories
The categories Gus keeps for a custom knife maker.
Set up once for how waitlist orders and show sales get paid and what a knife costs to build. You never pick a category. He does, and an accountant checks it.
Money in
- Waitlist depositsHeld as money owed until a custom knife ships.
- Final build paymentsThe balance due once a knife is finished and shipped.
- Show salesCash and card sales made at knife or gun shows.
- Sharpening and repair workSmaller service work on knives already sold.
Money out
- Steel and billet stockDamascus billets, tool steel bar, and pattern-welded stock.
- Handle materialsStabilized wood, micarta, horn, or bone.
- Outsourced heat treatBatch fees paid to a heat treating service.
- Sheath and case materialsLeather, kydex, and hardware for sheaths.
- Equipment loan or leasePayments on the forge, grinder, or kiln.
- Show fees and travelTable fees, mileage, and lodging for knife shows.
- Shop rent and utilitiesIncludes forge fuel and grinder power draw.
What we watch for you
- Waitlist backlog
The value of deposits held for knives not yet delivered, so cash on hand is not mistaken for profit.
- Material cost by build
Steel and handle material cost against a knife's price, the real test of what you charge.
- Heat treat cost share
Outsourced heat treat cost against sales, worth knowing before raising volume.
- Show sales versus waitlist
How much of the year's income comes from table sales versus custom orders.
Ask Gus
Things custom knife makers 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.
Not yet, in the books it is. I hold it as money you still owe until the knife ships, then it moves to income so the month is not overstated.
It does. I tag it to that build instead of general steel spend, so you can see exactly what that knife cost to make.
If he is not on payroll and you pay him $2,000 or more this year, he gets a 1099-NEC by January 31. I keep that list running as we go.
The tax side
The tax side of a custom knife making business.
Most of what goes wrong here is timing on waitlist deposits and keeping one build's material cost from blending into another's.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Forge and grinder depreciationA forge, belt grinder, or kiln can usually be written off, often in the year it is bought. Section 179 covers up to $2,560,000 and bonus depreciation is 100 percent for property acquired after January 19, 2025.
- Waitlist depositsA deposit taken before a knife is delivered is money you owe the customer, not income, until the build is finished and the final invoice is issued.
- Steel and handle material on handBillets and handle stock bought and sitting in the shop at year end get valued and matched against what actually sold, rather than expensed the day they were bought.
- The pass-through deductionMost owner-operators can take up to 20 percent of business profit off their taxable income. It comes out right when waitlist deposits and steel cost are tracked correctly all year.
Deductions custom knife makers miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Steel billets and bar stock
- Handle materials
- Outsourced heat treat fees
- Belts and grinding wheels
- Sheath leather and hardware
- Forge fuel
- Safety gear and face shields
- Show table and travel costs
- Etching and finishing supplies
- Small hand tools
- Shop insurance
- Photography for listings
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 custom knife making year, kept every month.
Waitlist orders land on their own schedule, with knife shows clustering income at certain points in the year. Your taxes still run on their own schedule. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Waitlist reviewed
Open waitlist deposits and steel on hand get sorted, last year's return gets started, and your monthly set-aside is planned so April is already handled.
- April
Waitlist year filed
The accountant files and signs your return. Since the set-aside has been running since January, a season of steady waitlist forging does not turn into an April surprise.
- July
Midyear waitlist check
Where you stand, what you will owe, and whether a strong show season changed the number.
- October
Before winter shows
Gus looks at any forge or grinder buy worth making before December and flags it for the accountant's call on depreciation.
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 custom knife makers. 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 custom knife makers ask first.
How does Gus handle a deposit on a waitlist order?
He holds it as money you still owe the customer, not income, until the knife ships. That keeps a strong deposit month from overstating what you actually earned.
Can Gus track what a specific knife's steel actually cost?
Yes. When you tell him a purchase was for a specific build, he tags it there instead of general steel spend, so that knife's real cost is visible.
Do we have to change how we quote a custom knife?
No. Keep quoting knives the way you always have. Gus reads it off your bank statement, and when a deposit is unclear he asks once and remembers your answer.
I sell knives for cash at shows sometimes. Does that need to be tracked differently than online orders?
Yes, and Gus does that automatically. Keeping show sales apart from waitlist orders shows how much of your income comes from each.
My books are behind after a busy show season. Is that fixable?
Yes. Send the bank statements you have. Gus sorts waitlist deposits and show sales alike, the accountant checks the result, and most makers know where they stand within a week.
Do I write off a new grinder all at once?
Often you can. A forge or belt grinder bought for the business can usually be deducted the year it is bought, though sometimes spreading it out fits your year better. Gus flags the purchase and the accountant decides with your whole year in view.
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 small manufacturers & fabricators
We keep books for the business next door too.
- Beverage & food co-packers
- Cabinet shops
- CNC shops
- Countertop & solid surface fabricators (wholesale)
- Custom furniture makers
- Custom gate & iron works
- Custom metal art & sign fabricators
- Cut-and-sew apparel manufacturers
- Electronics assembly shops
- Firearm manufacturers
- Luthiers & instrument makers
- Machine shops
- Monument & memorial stone makers
- Packaging manufacturers
- Pallet manufacturers & recyclers
- Plastic injection molders
- Powder coating shops
- Precast concrete products
- Sandblasting & media blasting
- Sign manufacturers
- Small boat builders
- Soap & cosmetics manufacturers
- Taxidermists
- Tool & die shops
- Trailer manufacturers
- Truss & wall panel manufacturers
- Wholesale candle manufacturers
- Private label manufacturers
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