Small manufacturers & fabricators
Books and taxes for private label manufacturers.
A brand client's tooling payment, a minimum order deposit, raw material bought to a client's exact spec, and a lab testing fee. 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
October came in at $19,600. Meridian Wellness Co's mold payment is booked apart from production, since that tooling belongs to them once it is paid off.
- Meridian Wellness Co, MOQ depositMinimum order deposits
- Harlow Brands, production runProduction run invoices
- Client-spec raw materialRaw material by client
- Third party lab testingTesting and certification
- Client packaging orderPackaging by client
Why your books are different
Private label manufacturer books go wrong across three clients with three formulas.
A generalist sees deposits and bills. Your shop runs production for several brand clients at once, each with its own formula, packaging, and minimum order size, and some of them own the tooling that sits in your facility. When the books do not separate one client's costs from another's, you cannot tell which account is actually worth keeping.
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1
One client's material gets mixed with another's
Raw material bought to a specific client's formula or spec looks the same on a supplier invoice as material for a different client, and lumped together you cannot see what any single account really costs to produce.
What we doTags raw material and packaging to the client it was bought for, so each account's real margin is visible. -
2
A minimum order deposit looks like a finished sale
A brand client pays a deposit to lock in a production slot for a minimum order quantity, but if that deposit is booked as income the day it lands, the month looks better than it is while the run still owed goes unseen.
What we doHolds minimum order deposits as money still owed until the run ships, then moves it to income so the timeline matches reality. -
3
Client-owned tooling gets mixed with your own equipment
A mold or die a brand client paid for belongs to them, even though it runs in your facility, but if that payment is booked like a production invoice, it looks like income instead of what it really is.
What we doKeeps client tooling payments in their own category, separate from production revenue and separate from your own shop equipment. -
4
Lab testing and certification costs blend into general supplies
Third party testing required before a batch ships to a specific client costs real money per run, and if it is not tracked against that client, you cannot see whether the account's pricing actually covers it.
What we doKeeps testing and certification costs tagged to the client and run they served, so the real cost of serving that account is visible.
Your categories
The categories Gus keeps for a private label manufacturer.
Set up once for how each brand client's runs and tooling get paid and what it costs to produce for them. You never pick a category. He does, and an accountant checks it.
Money in
- Minimum order depositsHeld as money owed until a production run ships.
- Production run invoicesPer-unit or per-batch billing once a run is complete.
- Client tooling paymentsWhat a brand client pays for a mold or die that belongs to them.
- Reformulation and setup feesWhat is charged to develop or adjust a client's formula or spec.
Money out
- Raw material by clientIngredients or components bought to a specific client's formula.
- Packaging by clientLabels, boxes, and vessels specific to a brand client's spec.
- Testing and certificationThird party lab fees required before a run ships.
- Equipment loan or leasePayments on shop-owned production equipment.
- Shop rent and utilitiesBuilding costs for production and storage.
- Quality assurance laborStaff time spent on inspection and batch documentation.
- Freight and shippingInbound material and outbound finished goods for each client.
What we watch for you
- Margin by client
What each brand client's runs actually earn once material, packaging, and testing are counted.
- MOQ deposit backlog
The value of deposits held for runs not yet shipped, so cash on hand is not mistaken for profit.
- Client tooling balance
What is owed on molds or dies still being paid off, kept apart from your own shop equipment.
- Testing cost per run
Lab and certification cost against a run's price, so pricing actually covers it.
Ask Gus
Things private label manufacturer 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 counts as money in, but I keep it apart from your production revenue, since that mold belongs to the client, not the shop, once it is paid off.
I tag material, packaging, and testing costs to each client, so you can see real margin by account instead of one blended number.
If they are not on payroll and you pay them $2,000 or more this year, yes, a 1099-NEC by January 31. I keep that list running as we go.
The tax side
The tax side of a private label manufacturing business.
Most of what trips up a contract manufacturer's return is whose tooling is whose and what raw material and packaging is still on hand at year end, client by client.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Production equipmentShop-owned production equipment can usually be written off, often in the year it is bought. Section 179 covers up to $2,560,000 and bonus depreciation is 100 percent for property acquired after January 19, 2025.
- Client-owned toolingA mold or die a client paid for belongs to them for tax purposes, even while it runs in your facility, so it usually does not sit on your own depreciation schedule.
- Material and packaging on handRaw material and packaging bought ahead per client and sitting in the shop at year end get valued and matched against what actually sold, rather than expensed the day they were bought.
- The pass-through deductionMost owner-operated shops can take up to 20 percent of profit off taxable income. It comes out right when each client's material and tooling costs are tracked correctly all year.
Deductions private label manufacturers miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Raw material by client
- Client-specific packaging
- Third party lab testing fees
- Quality assurance supplies
- Batch documentation software
- Freight on incoming material
- Shop insurance
- Safety gear and uniforms
- Equipment maintenance parts
- Trade show and client visit costs
- Small hand tools
- Waste and scrap disposal
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 private label manufacturing year, kept every month.
Each client's runs land on its own schedule, not a season. Your taxes still run on one. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Accounts reviewed
Year end material and packaging per client get valued, last year's return gets started, and your monthly set-aside is planned so April is already handled.
- April
Client year filed
The accountant files and signs your return. Since the set-aside has been running since January, a quarter juggling several client contracts does not turn into a scramble.
- July
Midyear client check
Where you stand, what you will owe, and whether a new client this year changed the number.
- October
Before the close
Gus looks at any production equipment 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 private label manufacturers. 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 private label manufacturers ask first.
How does Gus keep our different brand clients' costs separate?
He tags raw material, packaging, and testing costs to the client they were bought for, so you can see each account's real margin instead of one blended number.
How does Gus handle a minimum order deposit?
He holds it as money owed to that client until the run actually ships, not income the day it lands. That keeps a heavy deposit month from overstating what the shop really earned.
Do we have to change how we quote a client's production run?
No. Keep quoting each client's run however you already do. Gus reads it off your bank statement, and when a payment is unclear he asks once and remembers the answer.
One of our clients owns the mold we run their product on. Does that change anything?
It changes what counts as your asset, not what you do. Gus keeps client-owned tooling payments apart from your own shop equipment.
Our books are behind after taking on a new client this year. Can that be fixed?
Yes. Send the bank statements you have. Gus works through each client's charges, the accountant checks the result, and most owners see where they stand within a week.
Do I write off new production equipment all at once?
Often you can. Production equipment bought for the business can usually be deducted the year it is bought, though sometimes spreading it out fits a shop'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