DTC brands

Books and taxes for pet product brands.

A Chewy wholesale payout, a subscription box whose contents change every month, product sent to pet influencers, and a batch pulled for safety. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
JuneExample month
$8,000
what you made

June came in at $8,000. A batch of chew toys failed the safety check and got destroyed, so I booked that loss the same week, not at year end.

  • Shopify Payments payoutSite sales
  • Chewy wholesale payoutWholesale orders
  • Pet Toy Works invoiceContract manufacturing
  • Box packing and fulfillmentSubscription fulfillment
  • Meta adsAdvertising
Money in$32,000
Money out$24,000
Set aside for taxes$1,700
An example month. Yours will have your numbers.

Why your books are different

A pet product brand's books go wrong in a few specific spots.

A generalist sees deposits and bills. Your business is a subscription box that changes every month, a wholesale account with its own terms, and a toy that fails a safety check. When the books do not know that, margin quietly slips away.

  1. 1

    A subscription box's contents cost more some months than others

    A themed box that swaps out toys and treats every month means the cost per box is never quite the same, and if a heavier month gets averaged with a light one, no single month's margin tells the truth.

    What we doTies each month's box cost to that month's actual contents, so subscription margin reflects what really shipped.
  2. 2

    A safety pull or a damaged batch is a real cost, not a shrug

    A toy that fails a safety check or arrives from the factory with a flaw usually gets pulled and either destroyed or sent back, and if that loss sits unbooked, inventory looks like it exists when it does not.

    What we doBooks a pulled or destroyed batch as a loss the month it happens, so inventory reflects what you can actually sell.
  3. 3

    A wholesale account pays differently than your own site

    A retail account like a pet store pays on invoice terms and sometimes takes deductions for promotions or damaged freight, and lumping that revenue in with direct sales hides what the account actually nets you.

    What we doKeeps wholesale accounts in their own category, deductions and all, so you see what that channel is really worth.
  4. 4

    Free product for pet influencers is marketing, not a sale

    Sending toys or treats to a pet influencer account for a post is a common way to get seen, and if that product is not pulled out of inventory as a cost, it inflates what looks like unsold stock.

    What we doBooks product sent for influencer posts as a promotion cost, out of inventory and out of revenue.
  5. 5

    A chewed or opened return cannot go back on the shelf

    A dog that does not take to a new treat means the bag comes back opened, and treating that return like ordinary restocked inventory overstates what you actually have left to sell.

    What we doBooks an opened treat or toy return as inventory shrink, not stock that goes back into rotation.

Your categories

The categories Gus keeps for a pet product brand.

Set up once for how you sell and what you spend. You never pick a category. He does, and an accountant checks it.

Money in

  • Site salesFull-price and promo orders through your own storefront.
  • Wholesale to pet retailersChewy and similar accounts, billed on terms.
  • Subscription box salesRecurring orders, tied to that month's actual box.
  • Marketplace salesAmazon or a marketplace, kept apart since each takes its own cut.

Money out

  • Contract manufacturingThe factory that produces toys, treats, or accessories.
  • Subscription fulfillmentPacking and shipping the box each month.
  • PackagingBoxes, bags, and inserts.
  • AdvertisingMeta and Google ad spend driving traffic to listings.
  • Influencer seedingProduct sent to pet influencer accounts for posts.
  • Card and marketplace feesWhat processors and marketplaces keep before you get paid.
  • Product liability insuranceCoverage for toys and treats sold to the public.

What we watch for you

  • Subscription box cost

    What each month's contents actually cost, so margin does not blur across a heavy month and a light one.

  • Wholesale account net

    What a retail account nets after deductions, so you know what the relationship is really worth.

  • Return and shrink rate

    Opened or damaged product against sales, since it quietly reduces what you have left to sell.

  • The set-aside

    What you will owe, tracked from what actually sold, not a guess left for later.

Ask Gus

Things pet product brand 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.

This month's box had a bigger toy in it. Does that throw off the numbers?

For that month, yes, and that is the point. I tie the cost to what actually shipped so this month's margin reflects this month's box, not an average.

We sent free treats to a pet influencer account for a post. Does that count as a sale?

No. That is a promotion cost. I pull it out of inventory and keep it out of revenue, so your numbers reflect what customers actually paid for.

A batch of toys failed a safety check and we destroyed them. What happens to that cost?

I book it as a loss the month it happens, so your inventory reflects what you can actually sell, not stock that no longer exists.

The tax side

The tax side of a pet product brand.

Most of what goes wrong here is timing. A safety pull unbooked, influencer seeding lumped into revenue, and a set-aside nobody started until the return was due.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Inventory and cost of goodsYou deduct the cost of what sold, not what is sitting in the warehouse. A production run for next month's box is an asset until it ships, not a write-off the day the invoice is paid.
  • 1099-K from marketplaces and processorsShopify Payments and Chewy or any other marketplace you sell through report your volume to the IRS once you cross $20,000 and 200 transactions in a year. Every dollar is taxable whether or not the form arrives.
  • 1099-NEC for contractorsA freelance photographer, packaging designer, or pet influencer paid $2,000 or more in a year who is not on payroll gets a 1099-NEC by January 31.
  • The pass-through deductionMost owners can deduct up to 20 percent of qualified business income, with the deduction phasing down above $201,750 for single filers and $403,500 for joint filers. It comes out right only when wholesale and subscription sales were tracked accurately all year.

Deductions pet product brands miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Contract manufacturing
  • Subscription box packing
  • Packaging and boxes
  • Meta and Google ad spend
  • Pet influencer seeding
  • Product liability insurance
  • 3PL fulfillment fees
  • Pet expo and trade show booth fees
  • Listing photography
  • Card and marketplace fees
  • Trademark and brand registration
  • Safety and compliance testing

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 pet product brand's year, kept every month.

Holiday gift sets bring a real push, and the subscription box keeps shipping every month in between. Your team is on the books the whole time, not only when the box goes out. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Gift returns settle

    Holiday pet gift returns wind down, right as last year's return needs to get moving. Gus keeps the set-aside running so nothing is a surprise later.

  2. April

    Return wrapped up

    The business return is filed and signed, batches and wholesale accounts included. The set-aside has covered it since January, so there is nothing to scramble for.

  3. July

    Midyear look

    A common time to check subscription box margins and see whether wholesale accounts are pulling their weight for the year.

  4. October

    Building the gift sets

    Holiday gift sets and stockings get built and priced. Gus looks at what packaging or equipment is worth buying before December.

What you get

Starts at$197a month

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 pet product brands. 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 pet product brand owners ask first.

Do I need to worry about safety regulations for pet toys?

That is a regulatory question, not a bookkeeping one, so Gus does not advise on safety standards. He does keep testing invoices and any recalled batch organized, so paperwork is ready if you need it.

How does Gus handle the changing contents of our subscription box?

He ties each month's box cost to what actually shipped that month, so margin reflects the real contents instead of an average across a heavy month and a light one.

We send free product to pet influencer accounts. Is that a write-off?

Yes. It is a promotion cost, not a sale, and Gus pulls it out of inventory and keeps it out of revenue so your numbers reflect what customers actually paid for.

A batch of toys failed a safety check and we had to destroy them. What happens on the books?

That loss gets booked the month it happens, so your inventory reflects what you can actually sell rather than stock that no longer exists.

We sell through Chewy and our own site. Does Gus keep those separate?

Yes. Wholesale accounts get their own category, deductions and all, so you can see what each channel actually nets you.

My books are a mess because we just launched a subscription box on top of our regular sales.

Send your bank statements and box fulfillment invoices. Gus sorts through both and most owners know where they stand within 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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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