Small manufacturers & fabricators

Books and taxes for soap and cosmetics manufacturers.

A private label spa order, a wholesale boutique account, a lye and carrier oil order, and a batch of bottles waiting on labels. 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
MayExample month
$9,400
what you made

May came in at $9,400. The lavender batch for Cedar Grove Spa is still curing, so its sale won't land until it ships in June.

  • Cedar Grove Spa, private labelPrivate label orders
  • Wholesale boutique accountWholesale orders
  • Lye and carrier oil orderOils and lye
  • Fragrance and essential oil orderFragrance and essential oils
  • Bottle and jar supplierVessels and packaging
Money in$37,000
Money out$27,600
Set aside for taxes$2,100
An example month. Yours will have your numbers.

Why your books are different

Soap and cosmetics books go wrong while the batch is still curing.

A generalist sees deposits and bills. Your shop mixes oils and lye into a batch that needs weeks to fully cure before it can ship, fills private label orders in a spa or boutique's own packaging, and holds new formulas for testing before a full run. When the books do not track that arc, a big oil order looks like a loss and stock waiting on the shelf looks invisible.

  1. 1

    A curing batch is invisible on the bank statement

    A soap batch can need four to six weeks to fully cure before it is ready to sell, and if the books only see cash bought and cash sold, the month it was mixed looks like a loss even though a shelf of product is simply waiting.

    What we doTracks curing batches as work in progress, separate from finished stock ready to ship, so a heavy production month does not read as a bad one.
  2. 2

    Private label packaging gets mixed with your own line

    A spa or boutique's own labels and bottles for a private label order cost differently than your own branded packaging, and lumped together you cannot see whether a private label account is actually worth the volume.

    What we doTags private label packaging and material to the account it was bought for, so each account's real margin is visible.
  3. 3

    A test batch looks like a lost sale

    Formulating and testing a new scent or lotion recipe uses real oils and fragrance before it ever becomes a sellable product, and if that cost is not tracked apart from production, it just looks like wasted material.

    What we doKeeps test batches in their own line so product development cost is visible, not mistaken for waste.
  4. 4

    Oils and fragrance bought ahead skew a month

    Buying carrier oils and fragrance in bulk to get a price break can make one month look expensive and the next look great, when the material is really just sitting in the shop for future batches.

    What we doKeeps oils and fragrance in one steady line and flags when a bulk order is the reason a month looks thin.

Your categories

The categories Gus keeps for a soap and cosmetics maker.

Set up once for how wholesale and private label orders get paid and what a batch costs to produce. You never pick a category. He does, and an accountant checks it.

Money in

  • Private label ordersBatches produced and packaged under a spa or boutique's own brand.
  • Wholesale ordersStandard product line sold to retailers and boutiques.
  • Direct salesSales at markets, pop-ups, or through your own site.
  • Custom formulation feesWhat a client pays for a recipe developed just for them.

Money out

  • Oils and lyeBase oils, lye, and other saponification ingredients.
  • Fragrance and essential oilsScent ingredients, tracked apart from base oils.
  • Vessels and packagingBottles, jars, boxes, and private label packaging.
  • Labels and printingIngredient labels and branded packaging print runs.
  • Shop rent and utilitiesIncludes the curing room and mixing equipment power draw.
  • Equipment loan or leasePayments on mixers, molds, and lotion kettles.
  • Testing and safety suppliesPipettes, pH strips, and stability testing materials.

What we watch for you

  • Curing room inventory

    The value of batches curing but not yet ready to ship, so a heavy production month is not mistaken for a loss.

  • Margin by account type

    Spa and boutique private label batches against your own branded line, so pricing reflects what each is really worth.

  • Ingredient cost share

    Oil and fragrance cost as a percent of sales. A jump means supplier prices moved and quotes need a look.

  • Test batch cost

    What formulating a new product actually costs, tracked apart from regular production.

Ask Gus

Things soap and cosmetics makers 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.

We mixed a big batch this month but it needs six weeks to cure. Why does this month look thin?

It only looks that way because the oil and lye cost hit already and the sale hasn't. Once it ships and sells, that batch will show up as the sale it really is.

I spent a weekend testing a new lotion recipe. Is that just a loss?

Not on the books. I keep test batches in their own line, so that cost shows up as product development, not wasted material.

Do I owe our part-time labeler a 1099?

If she is not on payroll and you pay her $2,000 or more this year, she gets a 1099-NEC by January 31. I keep that list running as we go.

The tax side

The tax side of a soap and cosmetics manufacturing business.

Most of what goes wrong here is timing on curing batches and keeping oils and packaging valued right at year end.

What your return has to get right

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

  • Mixers and lotion kettlesMixers, molds, and lotion kettles 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.
  • Oils and packaging on handOils, fragrance, and vessels bought ahead and sitting in the shop at year end get valued and matched against what actually sold, rather than expensed the day they were bought.
  • Product testing costsMaterials used to formulate and test a new recipe are a real, deductible cost of developing a product, tracked apart from regular production.
  • The pass-through deductionMost owner-operators can take up to 20 percent of business profit off their taxable income. It comes out right when curing batches and private label packaging are tracked correctly all year.

Deductions soap and cosmetics manufacturers miss

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

  • Base oils and lye
  • Fragrance and essential oils
  • Bottles, jars, and boxes
  • Ingredient labels and printing
  • pH strips and testing supplies
  • Gloves and safety goggles
  • Scale and equipment calibration
  • Trade show and market booth costs
  • Freight on incoming ingredients
  • Sample products for retailers
  • Shop uniforms
  • Small hand tools

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 soap and cosmetics manufacturing year, kept every month.

Batches cure and orders land on their own schedule, 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.

  1. January

    Batches reviewed

    Year end oils and packaging on hand get valued, last year's return gets started, and your monthly set-aside is planned so April is already handled.

  2. April

    Batch season signed

    The accountant signs and files your return. Because the set-aside has been building since January, a month of heavy batch curing does not turn into a scramble come spring.

  3. July

    Midyear cure check

    Where you stand, what you will owe, and whether new private label accounts changed the number.

  4. October

    Before year's end

    Gus looks at any mixer or kettle buy worth making before December and flags it for the accountant's call on depreciation.

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 soap and cosmetics 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 soap and cosmetics makers ask first.

How does Gus handle a batch that's still curing at month end?

He tracks it as work in progress, separate from finished stock ready to ship, so a heavy production month does not read as a loss before it has actually sold.

Can Gus keep private label orders separate from our own branded line?

Yes. Each spa or boutique's bottles and oils get tagged to their account, so you can see which private label clients are actually worth the batch sizes they order.

Do we have to change how we price a wholesale or private label order?

No. Keep pricing the way you do. Gus works from your bank statement, and when a payment is unclear he asks you once and remembers the answer.

We buy oils in bulk to get a better price. Does that mess up the books?

No. Gus flags a bulk buy so it does not read as a bad month, since the oil is just sitting in stock for future batches.

Our books are behind after adding a couple of private label accounts. Can that be fixed?

Yes. Send the bank statements you have. Gus sorts curing batches and private label orders alike, the accountant checks the result, and most owners know where they stand within a week.

Do I write off a new lotion kettle all at once?

Often you can. A mixer or lotion kettle 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.

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