DTC brands
Books and taxes for skincare brands.
TikTok Shop settlements, a formulation lab invoice, stability testing, and packaging that keeps getting fancier. 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
May came in at $14,500. The new airless pump order raised the cost per jar, so I flagged it before you set June's price.
- Shopify Payments payoutSite sales
- TikTok Shop settlementMarketplace sales
- Nova Cosmetics Lab invoiceContract manufacturing
- Stability testing feeProduct testing
- Airless pump orderPackaging
Why your books are different
A skincare brand's books go wrong in a few specific places.
A generalist sees deposits and bills. Your business is batches, jars, and a live-selling event that can make a week look great until the returns land. When the books do not know that, a strong month and a weak one can look the same.
-
1
Opened product cannot go back on the shelf
A customer who reacts to a serum sends it back, but once a jar has been opened it cannot be resold like a shirt or a gadget. Booking that return as ordinary restocked inventory overstates what you actually have to sell.
What we doBooks an opened return as inventory shrink rather than stock coming back on the shelf. -
2
Deluxe sample minis get lost in the batch cost
Running a batch of full-size serum alongside a run of sample-size minis for PR boxes splits one production cost across two products, and if the minis are not tracked on their own, the full-size product looks more expensive to make than it is.
What we doKeeps sample-size runs in their own cost line so the full-size product's real margin stays visible. -
3
A TikTok Shop chargeback looks like a lost sale
A dispute or return through TikTok Shop can pull money back weeks after a live-selling event posted the sale, and if it lands in the same bucket as an ordinary refund, a strong sales week can look worse than it was.
What we doBooks chargebacks and disputes as their own line, tied back to the sale they reverse, once they land. -
4
Stability testing gets buried as a one-time cost
A new formula usually sits through weeks of stability and microbial testing before it ships, and owners often expense that fee the month it is paid rather than tying it to the launch it clears, muddying that launch's true cost.
What we doKeeps testing tied to the formula it clears, so a launch's real cost is visible before the first jar sells. -
5
A packaging upgrade quietly changes your margin
Switching from plastic to glass or adding an airless pump can double a jar's packaging cost overnight, and if the books do not catch it, a price that used to make money starts losing it without anyone noticing.
What we doFlags a jump in packaging cost the month it happens, so pricing can catch up before it becomes a habit.
Your categories
The categories Gus keeps for a skincare 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
- TikTok Shop and live sellingSales from live events and the TikTok Shop storefront.
- Shopify site salesFull-price and promo orders through your own storefront.
- Wholesale to boutiques and spasBulk orders billed direct, kept apart from retail sales.
- Subscription skincare setsRecurring orders through your subscription app.
Money out
- Contract manufacturingThe lab or facility that formulates and fills each batch.
- PackagingJars, pumps, boxes, and inserts.
- Stability and safety testingTesting a new formula goes through before it ships.
- Influencer seeding and PR boxesProduct and packaging sent for reviews and unboxings.
- AdvertisingMeta and TikTok ad spend driving traffic to the site and the shop.
- Fulfillment3PL pick, pack, and ship fees for orders outside a marketplace.
- Payment and marketplace feesWhat Shopify Payments and TikTok Shop keep before you get paid.
What we watch for you
- Cost per unit
Formula, packaging, and testing against units produced, so margin holds up as any one cost shifts.
- Return and reaction rate
Opened returns against sales. A rising rate is worth a formula or a listing look.
- Live-selling share
How much of sales comes from TikTok Shop against your own site, once chargebacks settle.
- The set-aside
What you will owe, tracked from batches actually sold, not a guess left for spring.
Ask Gus
Things skincare 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.
No. Once a product has been opened it cannot be resold, so I book it as inventory shrink, and the refund reverses the sale, not stock coming back.
The live event still shows the full sale. I book the chargebacks against it once they land, so you see the real number after the dust settles.
Yes. The product and packaging for those minis are a promotion cost, not inventory you plan to sell, and I keep them out of your regular unit cost.
The tax side
The tax side of a skincare brand.
Most of what goes wrong here is timing and labels. A batch expensed too soon, testing fees buried in the wrong place, and a set-aside nobody started until spring.
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 on a shelf. A finished batch of serum waiting in the warehouse is an asset until it ships, not a write-off the day the invoice is paid.
- 1099-K from Shopify and TikTok ShopPayment processors and marketplaces 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 influencer paid $2,000 or more in a year who is not on payroll gets a 1099-NEC by January 31.
- The pass-through deductionUp to 20 percent of qualified business income can come off before tax, phasing down for single filers earning more than $201,750 and joint filers above $403,500. The number only comes out right if formulation and packaging costs were tracked correctly all year.
Deductions skincare brands miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Stability and safety testing
- Contract manufacturing and formulation
- Packaging, jars, and pumps
- Influencer seeding and PR boxes
- Meta and TikTok ad spend
- Photography and content shoots
- 3PL fulfillment fees
- Product liability insurance
- Trademark and label registration
- Sample and mini packaging
- Shopify and subscription app fees
- Ingredient sourcing samples
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 skincare brand's year, kept every month.
Holiday gift sets bring the biggest push of the year, and the returns come back after. Your team is on the books every month, not only when the calendar says it is time. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Gift set returns
Some of the holiday gift set volume comes back as returns. Gus books them as they land and gets last year's return moving at the same time.
- April
Return complete
The accountant reviews, signs, and files the return. With the set-aside tracking every launch and every batch since January, nothing about April is a surprise.
- July
Summer slowdown
Sales often dip in the summer heat. Gus uses the quiet stretch to show you where you stand and what you will owe.
- October
Before the big push
Gift sets get built and priced before the holiday rush. Gus looks at packaging costs and equipment worth buying 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 skincare 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 skincare brand owners ask first.
Do I need special licensing to sell skincare online?
That is a regulatory question, not a bookkeeping one, so Gus does not advise on labeling or licensing. He does keep your testing invoices and formulation costs organized, so paperwork is ready if a regulator or a specialist ever asks for it.
My ingredient costs change almost every batch. How does that work in the books?
Gus lands whatever a batch actually cost, ingredients and packaging included, onto the units it produced, so your margin reflects that run's real cost instead of a fixed number from months ago.
I sell through boutiques and spas as well as my own site. Does that change anything?
No. Wholesale invoices get their own category, separate from direct-to-consumer sales, so you can see which channel is actually carrying the business.
What happens when I buy a big batch of jars and boxes at once?
That stays in inventory until it is used, not an expense the day you pay for it, so one bulk order does not make a quiet month look worse than it was.
My books are behind because I just switched manufacturers.
Send the bank statements you have from both. Gus sorts through the switch and most owners know where they stand within a week.
Does giving product away for a review or a PR box count as an expense?
Yes. It is a promotion cost, not a sale, and Gus keeps it out of revenue so your top line reflects what customers actually paid.
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