Cannabis, hemp & botanicals
Books and taxes for kratom and botanical shops.
Register sales, wholesale orders from a compounder, third-party purity testing, and a product some states have banned outright. Your own bookkeeper keeps it sorted, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
March made $9,000. The kilo of powder that failed its purity retest got written off against that batch instead of quietly disappearing from the inventory count.
- Counter sales, powder and capsulesRetail sales
- Website order payoutOnline sales
- Compounder wholesale orderProduct for resale
- Third-party purity testingLab testing
- Merchant account feeCard processing fees
Why your books are different
A kratom shop's shelf can change legality by crossing a state line.
Kratom is legal to sell in most states, banned outright in a few, and restricted with age and labeling rules in others. A generalist treats every product on the shelf the same. This business needs its books ready for a product that a single state's rule can pull off the shelf.
-
1
A failed batch never gets written off
A kilo of kratom powder that fails a third-party purity or contaminant test cannot legally be sold, but the wholesale cost was already paid. Left sitting in the inventory count as sellable stock, it quietly overstates what the shop is actually holding.
What we doLogs a failed or destroyed batch against its own cost, so the inventory count reflects what can actually go on the shelf. -
2
Purity testing gets buried in general supplies
Third-party lab testing that confirms a batch is free of contamination is a real, recurring cost of selling kratom responsibly, not an occasional expense. Lumped into general supplies, it disappears from view.
What we doKeeps purity testing tied to the batch it cleared, so the real cost of each product line is visible, not hidden in supplies. -
3
A card processor drop scrambles a normal month
Some banks and card networks decline to work with kratom retailers, forcing a switch to a backup processor with little warning. Two payout schedules landing in one month can make an ordinary month look uneven.
What we doKeeps a running record of daily sales that does not depend on which processor's payout schedule the money lands under. -
4
General botanicals and kratom blur together
A shop selling kratom alongside other herbal supplements, adaptogens, and teas can lose track of which product line actually carries the store, since one register total covers everything.
What we doKeeps kratom and general botanical sales in separate categories, so it is clear which part of the shelf is actually working. -
5
A compounder's bulk discount timing throws off a month
A bulk order placed to lock in a compounder's better pricing can land as one large expense in a slow sales month, making that month look far worse than it actually is.
What we doKeeps bulk inventory purchases visible against what actually sold, so a big stock-up does not read as a bad month.
Your categories
The categories Gus keeps for a kratom and botanical shop.
Set up once for how the shop sells and what keeps a batch legal to sell. You never pick a category, he does, and an accountant checks it.
Money in
- Retail salesKratom powder, capsules, and extract shots sold at the counter.
- Online salesOrders placed through the shop's own site, shipped where state law allows.
- General botanical salesOther herbal supplements, teas, and adaptogens sold alongside kratom.
- Wholesale salesBulk orders sold to another retailer or vendor.
Money out
- Product for resaleKratom powder, capsules, and extracts bought from a compounder or supplier.
- Lab testingThird-party purity and contaminant testing on incoming batches.
- Card processing feesWhat a kratom-friendly merchant account keeps on each sale.
- Packaging and labelsJars, capsules, and labels that meet state disclosure requirements.
- Point of sale feesThe register system and card reader running the counter.
What we watch for you
- Failed batch cost
What was spent on product that failed testing and could not be sold.
- Kratom versus botanicals
Which part of the shelf is actually carrying the store's sales.
- Cost per batch
What a batch of powder or capsules actually cost once testing is added in.
- Online versus retail mix
How much of sales come through the counter against the website.
Ask Gus
Things kratom and botanical 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.
I logged it as a loss against that batch rather than leaving it in the inventory count as something you can still sell.
No. I track sales by the day they happened, not by when a payout lands, so switching to a new processor mid-month does not throw off the real number.
It varies a lot by state and changes, so that is above my pay grade. I keep the books ready either way, but the shipping and legal question is worth checking closely before you expand.
The tax side
The tax side of a kratom and botanical shop.
This is an ordinary retail business for federal tax purposes, with the main complications coming from testing costs and a shifting state legal picture.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Ordinary retail deductions apply hereA kratom and botanical shop is taxed like any other retailer, not under the rule that strips deductions from plant-touching cannabis businesses. Rent, marketing, and wages are deductible the normal way.
- Failed batch write-offsProduct that fails purity or contaminant testing and cannot legally be sold is generally written off as a loss once it is confirmed unsellable and removed from inventory.
- Cost of goods sold and inventoryKratom and botanical products on hand are inventory until sold, and an accurate count matters since failed or destroyed batches need to be pulled out of that count.
- The pass-through deductionAn owner running the shop through a pass-through entity can generally deduct up to 20 percent of qualified business income, with the benefit phasing out above $201,750 single or $403,500 joint.
Deductions kratom and botanical shops miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Compounder wholesale orders
- Third-party purity testing
- Merchant account fees
- Packaging and labeling
- Point of sale system fees
- Failed batch write-offs
- Herbal product 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 kratom shop year, kept every month.
State rules on this product shift with little warning. Your team keeps the books current all year, ready for whatever comes. 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 1099 list for any outside help is ready, and a monthly set-aside is planned for the year ahead.
- April
Filed. Done.
Your return is filed and signed, with inventory and testing costs documented clearly, as the books stay ready for whatever state rules shift next.
- July
Halfway check
Where the shop stands, what it will owe, and whether kratom or general botanicals are carrying more of the sales than they did last summer.
- October
Restocking before winter
As colder weather brings shoppers in from the cold, Gus checks which products are moving and which need a markdown before the year closes out.
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 kratom and botanical 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 kratom and botanical shop owners ask first.
Is a kratom shop taxed differently than an ordinary retail store?
No. Kratom is not a federally scheduled substance, so this business is taxed like any other retailer, not under the rule that strips deductions from plant-touching cannabis businesses. The complications here are mostly testing and inventory, not the tax return itself.
What happens on the books when a batch fails purity testing?
It gets written off as a loss against that batch rather than staying in the inventory count as something you can still sell, so your real inventory value stays accurate.
Can Gus separate kratom sales from our other herbal products?
Yes. Kratom and general botanical sales get kept in their own categories, so you can see which part of the shelf is actually driving the store's revenue, month after month.
Our card processor keeps changing on us. Does that create a mess in the books?
No. Sales get tracked by the day they happened rather than by payout date, so a processor switch mid-month does not distort what that month actually looked like, even with two payout schedules.
Does the subscription tell us which states allow kratom sales?
No. Gus keeps the books ready and can flag inventory that becomes unsellable, but tracking which states currently allow kratom sales is a legal question outside a bookkeeping and tax subscription.
My shop's books have never separated wholesale purchases from what actually sold. Can that be fixed?
Yes. Send what you have, even a messy year of records. Gus sorts purchases from sales by batch, and most owners can see their real cost per batch 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.
More in cannabis, hemp & botanicals
We keep books for the business next door too.
- Cannabis cultivators
- Cannabis delivery services
- Cannabis processors & manufacturers
- Head shops
- Hemp farms
- Hemp-derived THC shops
- Hydroponic & grow supply shops
- Cannabis dispensaries
- Functional mushroom brands
- Hemp & CBD brands
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