Bookkeeping and Accounting for Clock And Watch Repair Shops

The accounting system for a clock and watch repair shop can significantly differ from other types of businesses. One of the main differences is the way inventory is managed. Watch and clock parts can be numerous and quite specific, and these need to be carefully tracked and accounted for. The system must also manage and account for direct labor costs - the hours spent repairing each clock or watch, which is typically a significant portion of cost and revenue in such businesses.

Additionally, these businesses may often deal with items on consignment, adding another layer of complexity to their accounting system. This could require unique ways of handling accounts receivable and payable. Also, the unique nature of many clocks and watches serviced might require an accounting system capable of handling a wide array of specific transaction types.

While there are general principles and methods that apply to every business, clock and watch repair shops certainly have their unique accounting needs and challenges. Therefore, they need a professional bookkeeper or accounting service, like Bench Accounting, that understands these needs and can customize their services accordingly.

For a clock and watch repair shop, specific expense categories that need to be tracked for bookkeeping purposes typically include:

• Purchase of parts and materials
• Tools and equipment
• Lease or rent for your shop
• Utilities (Electricity, Internet, etc.)
• Insurance costs
• Salary or wages for employees or contractors
• Marketing and advertising expenses
• Travel Expenses if applicable
• Professional fees (Legal, Accounting, etc.)

Each business is unique, however, so it's important that you set up a system that works for your specific needs and consult with a professional if necessary.

While there may be general accounting standards and tax considerations that apply to a wide range of industries, including horology, they are not typically specific to the horology industry. These could include considerations regarding valuation of inventory, recording of sales, tax deductions related to business expenses, etc.

However, depending on your specific business model in the horology industry, there might be particular tax credits, deductions or rules that apply. For example, if you manufacture watches or clocks, you may need to be aware of specific regulations related to manufacturing businesses.

Additionally, if you are importing or exporting watches or clocks, there could be customs and duties considerations. Similarly, requirements and rates for sales tax can vary, especially if you sell products online to customers in different states or countries.

We recommend consulting with a professional accountant or tax advisor who is familiar with your business and the horology industry. They can provide tailored advice and ensure you are in compliance with all relevant standards and tax laws. Bench Accounting offers bookkeeping services that can help you navigate these complexities.

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.