Hard goods, dealers & local stores
Books and taxes for independent hardware stores.
Register sales, contractor charge accounts, key cutting and paint tinting, and a co-op dividend that lands months later. 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
April came in at $13,400. The co-op dividend from last quarter landed too, and I kept it apart from register sales so it does not skew what the store actually rang up.
- Daily register depositRetail sales
- Ace co-op dividendCo-op rebate
- Smith Contracting terms pmtContractor accounts
- True Value distribution ctrInventory purchase
- Shell fuel, delivery vanDelivery and fleet
Why your books are different
Hardware store books go wrong in the same four places.
A generalist sees deposits and a stack of vendor bills. Your business is a spring stock-up, contractor accounts running on terms, key and paint services rung up alongside plain merchandise, and a co-op dividend that shows up on its own schedule. When the books do not know that, the monthly number lies.
-
1
The co-op dividend gets lost or misdated
A patronage dividend from Ace, True Value, or Do It Best often lands weeks or months after the quarter it was earned, as one lump payment with no obvious tie to daily sales. Missed or dumped into plain income, it either disappears or muddies which month actually earned it.
What we doBooks the dividend as its own line tied to the co-op, separate from register sales, so you can see what it actually added. -
2
Contractor accounts on terms look like cash the store has
A contractor with a store charge account buys lumber and hardware all month and pays on terms, sometimes 30 or 60 days out. Booked as a sale the day it happens, the store looks flush on paper while the actual cash is still weeks away.
What we doTracks open contractor accounts apart from cash and card sales, so what is owed does not get mistaken for money already in hand. -
3
A spring stock-up wrecks the monthly number
Fasteners, paint, lawn and garden stock, and seasonal hardware get bought heavy ahead of spring in one or two big distributor orders. Booked all at once, that month looks terrible and the slower months that follow look artificially strong.
What we doKeeps inventory buys visible against what has actually sold, so a big spring order does not read as a bad month on its own. -
4
Key cutting and paint tinting hide inside merchandise sales
A key duplicated or a gallon of paint tinted at the counter gets rung up as one line with the product, so there is no way to see how much of a month's money came from the service versus the item sold.
What we doKeeps counter services like key cutting and tinting in their own line, so you can see what the service side is actually worth.
Your categories
The categories Gus keeps for a hardware store.
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
- Retail salesDaily register and card sales rung up on the floor.
- Contractor accountsCharge account payments from builders and tradespeople on terms.
- Counter servicesKey cutting, paint tinting, and screen or glass cutting.
- Co-op rebatePatronage dividends and rebates from Ace, True Value, or Do It Best.
- Equipment rentalTool and equipment rental for customers, where the store offers it.
Money out
- Inventory purchaseFasteners, tools, paint, plumbing, electrical, and lawn and garden stock.
- Co-op dues and buy-inMembership fees and capital contributions to the buying group.
- Delivery and fleetFuel, repairs, and insurance for the delivery van or truck.
- Store payrollFloor staff, cashiers, and counter service employees.
- Rent and utilitiesStore lease, electric, heat, and water.
- Signage and local advertisingStorefront signage and the store's own local promotions.
- Card processing feesWhat the processor kept before the sale hit the bank.
What we watch for you
- Contractor accounts owed
What is on terms and not yet collected, so it is never mistaken for cash on hand.
- Gross margin
What is left after inventory cost. A stock-up month can hide whether pricing is actually working.
- Inventory turnover
How fast stock actually sells, so cash is not sitting on a shelf longer than it should.
- The set-aside
What you will owe, tracked every month, so tax season is a number you already knew.
Ask Gus
Things hardware store 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.
Yes, but I kept it as its own line apart from register sales so you can see it was the dividend, not a strong month at the counter.
It counts as a sale, but not as cash in hand yet. I keep his balance tracked separately so your cash picture stays honest.
That order is most of what you spent. I keep buys like that visible against what has actually sold, so one big order does not read as a bad month by itself.
The tax side
The tax side of a hardware store.
Most of what goes wrong here is timing. A dividend that lands late, a contractor balance nobody tracks, and a set-aside nobody started until April.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Inventory and cost of goods soldWhat was actually paid for the fasteners, paint, and tools sold during the year, not just what was spent restocking, is what counts against sales. A big spring order needs a fair way to value what is still on the shelf at year end.
- Section 179 on store equipmentShelving, a delivery van, a paint mixer, or a key machine can usually be written off in the year you buy it, up to $2,560,000 under Section 179. Bonus depreciation is 100 percent for property bought after January 19, 2025.
- Contractor 1099sAnyone not on payroll who you paid $2,000 or more in 2026, such as a delivery driver or a repair technician, gets a 1099-NEC by January 31. Gus keeps that list all year.
- 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 independent hardware stores miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Co-op membership dues
- Delivery van fuel and repairs
- Shelving and store fixtures
- Paint mixing and tinting supplies
- Key machine blanks and parts
- Local advertising and signage
- Snow removal and lot upkeep
- Card processing fees
- Business liability insurance
- Damaged or unsellable inventory write-offs
- Uniforms and aprons
- Point of sale software
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 hardware store year, kept every month.
Fasteners and paint move every week of the year, but spring stock-ups and a late co-op dividend both need watching. Your team keeps you ahead of both. 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, the contractor 1099 list is ready, and you get a monthly set-aside so April is already handled.
- April
Filed. Done.
Your return is filed and signed. No surprise bill, because the set-aside has been running since January.
- July
Halfway check
Where you stand, what you will owe, and whether the spring stock-up and rush changed the number.
- October
Before winter stock
Before the fall order for snow and ice supplies, Gus looks at equipment you might buy and anything worth doing before December.
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 independent hardware stores. 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 hardware store owners ask first.
How does Gus handle our co-op dividend from Ace or True Value?
He books it as its own line tied to the co-op, apart from daily register sales, so you can see what the dividend added instead of it blending into a normal month.
We run contractor charge accounts. Does that complicate the books?
No. Gus keeps open contractor balances tracked apart from cash and card sales, so what is owed shows up as owed, not as cash already in hand.
Do I need to change how I ring up key cutting and paint tinting?
No. Keep ringing sales up the way you do. Gus works from your bank statement and can keep counter services in their own line when he sees the pattern.
We buy heavy ahead of spring. Will that make our books look bad?
It can make one month look thin if nobody accounts for it. Gus keeps inventory buys visible against what has actually sold, so a big order does not read as a bad month by itself.
My books are behind from last season. Is that a problem?
No. Send the bank statements you have. Gus sorts them, the accountant checks them, 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.
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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