Cannabis, hemp & botanicals
Books and taxes for hydroponic and grow supply shops.
Register sales, wholesale accounts with commercial growers, and a spring stock-up that fills the whole warehouse at once. Your own bookkeeper keeps the inventory sorted, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
April made $17,000, the season's first big month. The pallet of grow tents that arrived on 60-day vendor terms got kept separate from what was actually paid, so cash on hand still looks honest.
- Counter sales, lights and tentsRetail sales
- Commercial grower accountWholesale sales
- Lighting distributor invoiceInventory purchases
- Nutrient line restockInventory purchases
- Warehouse rentFacility costs
Why your books are different
A grow supply shop lives and dies by its spring stock-up.
This is retail, not cultivation, selling lights, tents, and nutrients rather than growing anything. A generalist treats every month the same. This business needs one big seasonal buy handled right, so it does not wreck the numbers for the whole quarter.
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1
A spring stock-up looks like a terrible month
A shop orders most of a year's grow tents and lighting fixtures in one bulk purchase ahead of the spring rush, on vendor terms that may not be paid off for weeks. Expensed the day it was ordered, that single month can look like a loss even though the sales it fuels have not happened yet.
What we doKeeps big seasonal inventory buys visible against what has actually sold, so a bulk order does not read as a bad month. -
2
Vendor terms and cash paid out get confused
A distributor invoice on 30 or 60-day terms is a debt owed, not a cost paid the day the pallet arrives. Booked as a straight expense on delivery, the shop's real cash position gets harder to see.
What we doTracks what is owed to vendors separate from what has actually been paid, so cash on hand stays clear. -
3
A wholesale grower account gets mixed into retail
A commercial account buying nutrients and lighting in bulk at a discount looks the same as a walk-in customer once it hits the register total. Blended together, it is hard to tell if the wholesale side is actually worth the discount it gets.
What we doKeeps wholesale grower accounts in their own category, separate from retail counter sales. -
4
Returns and warranty exchanges vanish into sales
A defective light fixture or a pump returned under warranty reduces a later sale instead of showing up on its own. Left untracked, it looks like a slow week instead of what it actually is.
What we doKeeps returns and warranty exchanges in their own line, so a slow-looking week is not mistaken for weak sales. -
5
Slow-moving inventory sits on the books at full value
A lighting model that got replaced by a newer version can sit in the back for months, still counted at what it cost, even though it will only sell at a discount if it sells at all.
What we doFlags aging inventory so its value on the books reflects what it can actually still sell for, not what was paid for it.
Your categories
The categories Gus keeps for a grow supply shop.
Set up once for how the shop sells and what fills the shelves each season. You never pick a category, he does, and an accountant checks it.
Money in
- Retail salesLights, tents, nutrients, and hardware sold at the counter.
- Wholesale salesCommercial grower accounts buying in bulk at a set discount.
- Online salesOrders placed through the shop's own site and shipped out.
- Equipment rentalsLarger lighting or ventilation equipment rented out short term.
Money out
- Inventory purchasesLighting fixtures, tents, nutrients, and hydroponic systems bought for resale.
- Vendor terms owedWhat is owed to distributors on 30 or 60-day payment terms.
- Facility costsWarehouse or storefront rent and utilities.
- Returns and warranty exchangesDefective product returned to the shop or sent back to the manufacturer.
- MarketingLocal ads and seasonal promotions timed to the spring rush.
What we watch for you
- Cash versus vendor terms
What has actually been paid against what is still owed to distributors.
- Retail versus wholesale mix
How much of sales come from the counter against commercial grower accounts.
- Slow-moving inventory
What is sitting unsold long enough to need a markdown.
- Return and exchange rate
How much of sales come back as a return, tracked apart from a slow week.
Ask Gus
Things grow supply 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.
It doesn't have to. I kept that order visible against what is actually sold instead of expensing the whole thing on delivery, so the month reads honestly.
They get their own category. That way you can see whether the bulk discount those accounts get is actually worth it against what they buy.
It can. I flag inventory that has sat a long time so its value on the books reflects what it can still sell for, not what you originally paid for it.
The tax side
The tax side of a grow supply shop.
This is an ordinary retail business for federal tax purposes, with the main complications coming from seasonal inventory timing.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Ordinary retail deductions apply hereA hydroponic and grow supply shop is taxed like any other retailer, since it sells equipment rather than a cultivated plant itself. Rent, marketing, and wages are deductible the normal way.
- Inventory and cost of goods soldLighting, tents, and nutrients on the shelf are inventory until sold, not an expense the day a vendor invoice is paid, which matters most around the spring stock-up.
- Equipment depreciation for the business itselfDelivery vehicles, warehouse racking, and point of sale equipment can usually be written off through Section 179 expensing, up to $2,560,000, or 100 percent bonus depreciation for property placed in service after January 19, 2025.
- The pass-through deductionA pass-through entity structure lets most owners deduct up to 20 percent of qualified business income, with the deduction limited above $201,750 single or $403,500 joint in taxable income.
Deductions hydroponic and grow supply shops miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Inventory purchased for resale
- Vendor shipping and freight
- Warehouse rent and utilities
- Point of sale system fees
- Local advertising and promotions
- Delivery vehicle costs
- Warranty and return processing
- Store signage and displays
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 grow supply shop's year, kept every month.
Spring brings the season's biggest stock-up. Your team keeps the books current all year, not just during the rush. 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, vendor terms for the coming spring order get reviewed, and a monthly set-aside is planned for the year ahead.
- April
Filed. Done.
Your return is filed and signed, right as the spring rush and its biggest inventory order of the year hit at once.
- July
Halfway check
Where the shop stands, what it will owe, and whether the spring stock-up sold through as expected.
- October
Before the fall order
Before placing the next season's order, Gus looks at slow-moving inventory 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 hydroponic and grow supply 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 grow supply shop owners ask first.
Is a grow supply shop taxed differently because of what our customers grow?
No. This business sells equipment and supplies, not a cultivated product, so it is taxed like any other retailer. What a customer does with the lights or nutrients afterward has no bearing on how this shop's own return is filed.
Our spring order is on 60-day vendor terms. Why does Gus track that separately?
Because what is owed to a vendor is different from what has actually been paid. Keeping the two separate means your cash position stays clear even while a big order is still on account.
Can Gus track our commercial grower accounts apart from walk-in sales?
Yes. Wholesale accounts get their own category, so you can see whether the bulk pricing those accounts get is actually worth it against what they buy each month, instead of one blended number.
We have older lighting models that have not sold in months. Does that matter for taxes?
It can. Inventory that has sat a long time may need to be valued at what it can still sell for rather than what was originally paid, and Gus flags it so the accountant can weigh in.
Our books have never separated retail from wholesale sales. Can that be fixed?
Yes. Send what you have, even a mixed year of records. Gus sorts retail and wholesale apart, 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