Bookkeeping and Accounting for Lumberjacks

Bookkeeping for a lumberjack business tends to differ from other industries due to the unique expenditures, revenue streams, and regulations inherent to the industry. For example, a lumberjack business may have expenses related to equipment purchases and maintenance, logging permits, safety equipment, and transportation of logs that are not found in many other businesses. A professional bookkeeper familiar with the lumber industry can ensure these costs are properly tracked and accounted for. Furthermore, the way revenue is recognized can also differ, as there might be contracts for large orders or ongoing projects that need specific handling.

In addition, there may be industry-specific tax laws and regulations to which lumberjack businesses must adhere. This could involve different allowances or deductions, such as those related to environmental compliance or land leases.

Hence, while the fundamentals of bookkeeping remain the same, a bookkeeper assisting a lumberjack business would need to have a deep understanding of the specificities related to this industry.

Several tax deductions and credits may be beneficial for those operating within the lumber industry. For instance, there are deductions for tools and equipment purchase, logging machinery, land leasing which can also extend to include property taxes, as well as health and safety equipment costs.

Beyond these, there's also the possibility of receiving tax credits for sustainable practices like reforestation efforts which falls under the Tree Plantation Act. As well, credits may be accessible for employing individuals from certain disadvantaged groups under the Work Opportunity Tax Credit (WOTC).

We strongly recommend working with a professional bookkeeper or tax specialist who is familiar with your industry as this is not an exhaustive list and details may vary based on your specific circumstances and location.

Professionally managed bookkeeping can be a game changer in managing the costs of equipment and supplies in the lumberjack industry. Bookkeepers can help keep track of all expenses related to equipment purchase, maintenance, and supplies. They can also help to analyze these costs, identify patterns and areas for potential savings.

Furthermore, professional bookkeepers can assist in budgeting for upgrades or replacements, factoring in the depreciation of existing equipment. This kind of financial planning and analysis can help lumberjack business owners avoid unexpected costs and manage their finances in a more predictable and sustainable manner.

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.