Cannabis, hemp & botanicals
Books and taxes for head shops.
Register sales, glass and vape inventory, local artists selling on consignment, and shrink that adds up fast on small items. Your own bookkeeper keeps it all sorted, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
July made $10,000. The local glass artist's consignment payout went out as his cut of what actually sold, not the full sticker price of everything on the shelf.
- Register sales, in-storeRetail sales
- Online order payoutOnline sales
- Vape distributor invoiceInventory purchases
- Consignment artist payoutConsignment payouts
- Age verification signageCompliance costs
Why your books are different
A head shop's books have to track what it does not actually own.
A wall of local glass on consignment, a case of vapes bought outright, and small items that walk off easier than almost anything else in retail. A generalist treats every item on the shelf the same way. This business needs its books to know the difference.
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1
Consignment glass gets counted as owned inventory
A local glassblower's pieces sit on the shelf but the shop does not own them until they sell, only a cut of the sale. Counted as regular inventory, the shop's numbers overstate what it actually holds and owes.
What we doKeeps consignment inventory separate from owned stock, so only the shop's actual cut shows up as revenue when a piece sells. -
2
Small items create outsized shrink
Lighters, papers, and grinders are cheap enough that a little walks off every week without anyone noticing, but it adds up over a year into a real dent in profit that never shows up as a single event.
What we doTracks shrink as its own number instead of letting it blend into cost of goods, so a slow leak gets caught before it becomes a habit. -
3
Vape inventory ages fast and unevenly
A flavor or device that was a bestseller last year can sit unsold for months once a new model comes out, still counted at what it cost even though it will only move at a discount.
What we doFlags aging vape inventory so its value on the books reflects what it can actually still sell for. -
4
ID checks at the counter are a real cost
Age-restricted items need a staff trained to check identification and signage posted at the register, and that training time and signage cost money every year, not just when the shop first opened.
What we doKeeps compliance costs like signage and staff training in their own line, separate from general supplies, so the shop can see the real cost of selling age-restricted product. -
5
Local ordinances change what can even be sold
A city or county can restrict or ban certain paraphernalia items with little warning, forcing a shop to pull product it already paid for off the shelf.
What we doLogs pulled inventory as a loss the moment it becomes unsellable, so the books do not overstate what is actually on hand.
Your categories
The categories Gus keeps for a head shop.
Set up once for what the shop owns and what it just sells on someone else's behalf. You never pick a category, he does, and an accountant checks it.
Money in
- Retail salesGlass, vapes, papers, and novelty items sold at the counter.
- Online salesOrders placed through the shop's own site, age-verified at checkout.
- Consignment salesThe shop's cut of a local artist's piece once it sells.
- Special order salesCustom pieces or bulk orders arranged ahead for a specific customer.
Money out
- Inventory purchasesVapes, papers, and accessories bought outright for resale.
- Consignment payoutsWhat is owed to a local artist or vendor for a piece that sold.
- Shrink and lossSmall items unaccounted for at inventory count, tracked as its own number.
- Compliance costsAge verification signage, ID scanners, and staff training.
- Card processing feesWhat a smoke-shop-friendly merchant account keeps on each sale.
What we watch for you
- Shrink rate
How much inventory is unaccounted for at count, tracked apart from normal cost of goods.
- Consignment payout owed
What is owed to local artists for pieces that already sold.
- Aging vape inventory
What has sat unsold long enough to need a markdown.
- Online versus retail mix
Whether the counter or the website is actually driving growth this quarter.
Ask Gus
Things head shop 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, only your cut once a piece sells counts as your revenue. I keep his consignment stock separate so the shop's numbers do not overstate what you actually own.
Some shrink on small items is common, but I track it as its own number so a slow leak gets caught instead of quietly eating your margin every month.
I logged that box as a loss the day it became unsellable, so the books do not overstate what you actually have on hand. Where to legally move what is left is worth checking separately.
The tax side
The tax side of a head shop.
This is an ordinary retail business for federal tax purposes, with the main complications coming from consignment inventory and shrink.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Ordinary retail deductions apply hereA head shop is taxed like any other retailer, since it sells glass, vapes, and accessories rather than a cultivated or controlled product itself. Rent, marketing, and wages are deductible the normal way.
- Consignment inventory and revenueOnly the shop's own cut of a consignment sale counts as its revenue, and product held for someone else generally is not the shop's own inventory for tax purposes.
- Shrink and inventory write-offsInventory lost to theft or shrink is generally deductible once it is documented at a physical count, rather than assumed and never verified.
- The pass-through deductionMost shop owners structured as a pass-through entity can take up to 20 percent of qualified business income off what gets taxed, with the deduction limited above $201,750 single or $403,500 joint.
Deductions head shops miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Inventory purchased for resale
- Consignment payouts to artists
- Age verification signage
- ID scanners and hardware
- Card processing fees
- Shrink documented at count
- Store fixtures and display cases
- Website and ecommerce hosting
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 head shop year, kept every month.
Consignment pieces come and go, and inventory ages at its own pace. Your team keeps the books current all year, not just at tax time. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Plan the year
Last year's return gets started, consignment arrangements get reviewed, and a monthly set-aside is planned for the year ahead.
- April
Filed. Done.
Your return is filed and signed, with consignment and owned inventory kept clearly separate, right as spring foot traffic picks up.
- July
Halfway check
Where the shop stands, what it will owe, and whether shrink or aging inventory changed the number since last summer.
- October
Before gift season begins
Before the year's busiest retail stretch, Gus looks at what inventory needs a markdown and anything worth doing before December closes out the year.
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 head 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 head shop owners ask first.
Do we owe tax on the full price of a consignment piece, or just our cut?
Just your cut. A local artist's piece is not your inventory until it sells, and only the share you keep counts as revenue. The rest is a payout owed to them, tracked separately.
We always seem to come up short on small items at inventory count. Is that a real cost?
Yes, and it is worth tracking on its own. Shrink on lighters, papers, and grinders adds up over a year, and once it is documented at a physical count it is generally a deductible loss.
Can Gus tell us if our vape inventory is getting too old to sell at full price?
Yes. Aging inventory gets flagged so its value on the books reflects what it can realistically still sell for, not what was originally paid for it months ago.
A city ordinance just banned an item we still have in stock. What happens to that cost?
It gets written off as a loss the day it becomes unsellable, so your books do not keep counting it as inventory you can still move. Where it can legally still be sold, if anywhere, is a separate question worth checking.
Our last bookkeeper never separated consignment from owned inventory. Can that be fixed?
Yes. Send what you have, even a tangled year of records. Gus sorts consignment stock from owned inventory, and most owners can see their real numbers within a couple of weeks.
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