Small manufacturers & fabricators
Books and taxes for pallet manufacturers and recyclers.
A new build order, a repaired pallet exchange payment, a load of recycled cants, and a delivery truck fuel 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
July came in at $11,200. The scrap sawdust sale to the mulch buyer got its own line, so it doesn't blend into new build revenue.
- Coastal Freight, new build orderNew build orders
- Pallet exchange, repaired unitsRepair and exchange
- Recycled cant loadLumber and cants
- Nail and fastener supplierFasteners
- Delivery route fuelFreight and delivery
Why your books are different
Pallet manufacturer books go wrong on thin margins across a lot of volume.
A generalist sees deposits and bills. Your yard builds new pallets, repairs and exchanges used ones, and moves scrap wood and sawdust as its own byproduct, all at a per-unit price that leaves little room for error. When the books do not track each of these separately, a slow freight month can look like it, when the real cause is a delivery cost nobody priced in.
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1
New build and repair work blend into one number
A new pallet built from fresh lumber and a repaired pallet from a recycling exchange price completely differently, and lumped together neither shows whether the shop is making money building or fixing.
What we doKeeps new build orders separate from repair and exchange work, so each line shows its true margin. -
2
Freight cost quietly eats a thin per-unit margin
Pallets are bulky and low value per piece, so delivery cost matters more here than in most trades, and if freight is not tracked against the order it served, a bad delivery route can wipe out a run's profit without anyone noticing.
What we doTracks freight and delivery cost against the orders they serve, so a route that is not worth running shows up clearly. -
3
Scrap and sawdust sales look like part of pallet revenue
Selling scrap wood and sawdust byproduct to mulch or fuel buyers brings in real money, but if it is lumped in with pallet sales, you cannot see how much of the yard's income actually comes from the core business.
What we doKeeps byproduct sales in their own category so pallet revenue and byproduct revenue are both clear. -
4
Lumber grade and price swings never reach the quote
Recycled cant prices and new lumber prices both move, and a per-unit price set months ago can be underwater by the time a large order actually ships.
What we doTracks lumber cost as a share of what came in, so a price move gets caught before a season of orders falls behind it.
Your categories
The categories Gus keeps for a pallet manufacturer.
Set up once for how new build, repair, and byproduct sales get paid and what they cost to run. You never pick a category. He does, and an accountant checks it.
Money in
- New build ordersPallets built to a customer's spec from new or recycled lumber.
- Repair and exchangeUsed pallets repaired and returned through an exchange program.
- Scrap and byproduct salesSawdust, chips, and scrap wood sold to mulch or fuel buyers.
- Core depositsDeposits held on pallets in an exchange program.
Money out
- Lumber and cantsNew lumber and recycled cants, tracked as prices move.
- FastenersNails, staples, and connector plates.
- Freight and deliveryFuel and driver time to move pallets to and from customers.
- Equipment loan or leasePayments on the notcher, saw line, and forklifts.
- Yard rent and utilitiesStorage yard and building costs.
- Waste and byproduct handlingGrinding and hauling scrap wood.
- PayrollLine workers, repair crew, and drivers.
What we watch for you
- Margin by line
New build against repair and exchange, so pricing reflects what each really earns.
- Freight cost per order
Delivery cost against an order's price, so a route that is not worth running shows up fast.
- Lumber cost share
Lumber and cant cost as a percent of sales, so a supplier price swing gets caught before a season of orders falls behind it.
- Byproduct income
How much scrap and sawdust sales add, separate from core pallet revenue.
Ask Gus
Things pallet yard 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.
A few deliveries this month ran a long route. I track freight against the order it served, and those trips cost more than the flat price covered.
I keep it separate. It is real income, just not from pallets, so you can see both numbers clearly instead of one blended figure.
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 pallet manufacturing business.
Most of what goes wrong here is thin per-unit margins hiding a real cost, usually freight or lumber grade, and keeping lumber on hand valued right at year end.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Saw lines and forkliftsNotchers, saw lines, and forklifts can usually be written off, often in the year they are bought. Section 179 covers up to $2,560,000 and bonus depreciation is 100 percent for property acquired after January 19, 2025.
- Lumber and cants on handNew lumber and recycled cants bought ahead and sitting in the yard at year end get valued and matched against what actually sold, rather than expensed the day they were bought.
- Heavy vehicle depreciation capA delivery truck over 6,000 pounds still gets Section 179, but the deduction is capped at $32,000 rather than the full purchase price.
- The pass-through deductionMost owner-operators can take up to 20 percent of business profit off their taxable income. It comes out right when freight cost and lumber pricing are tracked correctly all year.
Deductions pallet manufacturers and recyclers miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Lumber and recycled cants
- Nails and connector plates
- Saw blades and notcher parts
- Forklift maintenance
- Delivery truck fuel and repairs
- Safety gear and gloves
- Yard equipment rental
- Waste and byproduct hauling
- Shop uniforms
- Small hand tools
- Yard insurance
- Scale calibration
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 pallet manufacturing year, kept every month.
Orders come in on customer schedules all year, not a season. 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
Yard reviewed
Year end lumber and cant stock get valued, last year's return gets started, and your monthly set-aside is planned so April is already handled.
- April
Yard year filed
The accountant files and signs your return. Since the set-aside has been running since January, a season of heavy freight costs does not turn into an April surprise.
- July
Midyear yard check
Where you stand, what you will owe, and whether freight costs this year changed the number.
- October
Before the yard closes
Gus looks at any saw line or forklift 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 pallet manufacturers and recyclers. 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 pallet manufacturers ask first.
Can Gus separate new build orders from repair and exchange work?
Yes. They price differently, so keeping them apart shows which line is actually paying for the yard.
Does freight get tracked against a specific order?
Yes, and it matters here more than most trades. A thin per-unit margin can disappear fast on a long delivery route, so Gus keeps that cost visible against the order it served.
We sell scrap wood and sawdust on the side. Should that be tracked separately?
Yes, and Gus does that automatically. It keeps byproduct income from blending into pallet sales, so both numbers stay honest.
Do we have to change how we price a build or repair order?
No. Keep pricing the way you do. Gus works from your bank statement, and when a deposit is unclear he asks you once and remembers the answer.
Our books are behind after a busy freight season. Can that be fixed?
Yes. Send the bank statements you have. Gus sorts new build, repair, and byproduct income apart, the accountant checks the result, and most owners know where they stand within a week.
Do I write off a new forklift all at once?
Often you can. A forklift or saw line bought for the business can usually be deducted the year it is bought, though sometimes spreading it out fits a yard's 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.
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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