Bookkeeping and Accounting for Candle Shops

As a candle shop owner, you can claim a variety of expenses on your taxes. Some of these include:

• Costs of raw materials and supplies required to make your candles
• Rent or mortgage costs for your business property
• Utilities, such as electricity, heat, and water
• Cleaning and maintenance expenses for your workspace
• Advertising and marketing costs, including website maintenance
• Shipping and packaging costs
• Professional services, like consulting fees, legal charges, and bookkeeping fees
• Insurance premiums related to your business
• Business related travel expenses

Do remember though, each tax situation is unique and it's always recommended to seek guidance from a professional to ensure the eligible expenses are properly claimed.

Inventory accounting for a business like a candle shop is a crucial part of understanding the total cost of goods sold (COGS) and how much inventory you have on hand. Inventory accounting starts with tracking the purchase of raw materials required for making candles. This includes the cost of wax, scents, dyes, wicks, and labels.

When these raw materials are combined to produce finished candles, the costs associated with production are then added to the overall inventory costs. This includes direct labour costs and overhead costs. These costs together give you the COGS. Every time a candle is sold, the COGS of that candle is recognized as an expense in your income statement.

If there are any candles left in the inventory, the cost associated with these candles will be carried over to the next accounting period. Accurate inventory accounting helps your candle shop to better predict future costs, set strategic pricing, track profits, and make informed decisions for your business.

Tracking and categorizing revenue and expenses for your candle shop effectively requires a detailed and structured system. Bench Accounting can provide exceptional support in the following ways:

• Accurate record-keeping: Bench Accounting maintains an accurate record of all your financial transactions, ensuring that every dollar spent or earned is factored into your financial reports.
• Detailed categorization: We classify your revenues and expenses into granular categories. For your candle shop, this might include categories like raw materials, production costs, marketing spend, retail, wholesale, and online revenues.
• Regular financial reporting: Bench accounting provides monthly financial statements so you can track where your revenue is coming from and where your money is going. They make it easy to identify trends or issues rapidly.
• Help with tax preparation: At the end of the financial year, Bench Accounting helps you prepare for tax season by ensuring your books are tax-compliant and by helping you optimize your tax deductions.

Bench Accounting can help you track and categorize your profits and costs correctly and effectively so you can focus on making exceptional candles. Get in touch with us today for more information!

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.