Bookkeeping and Accounting for Optical And Eyewear Stores

Accounting for optical and eyewear stores requires detailed inventory management due to the vast range of products with varying styles, categories, and prescriptions. The process involves tracking each item meticulously with its type, purchase cost, selling price, and most importantly, its availability in the store. It involves techniques such as:

• First-In-First-Out (FIFO): This method assumes the first glasses purchased or produced are the first ones sold. This ensures that inventory valuation is closest to the current market cost.
• Just-In-Time (JIT): This method helps to maintain low inventory levels by ordering stock just before it's required for sale. It reduces storage costs and ensures freshness of the offerings to customers.
• Dropshipping: This method allows eyewear stores to order directly from manufacturers or wholesalers only after customers have made purchases, eliminating the need to hold large amounts of inventory.

Each of these techniques can be implemented according to the specific needs and demands of the eyewear store. To ensure accuracy and efficiency, many optical stores leverage accounting software that automates parts of inventory management.

As an owner of an optical and eyewear store, there are several specific tax considerations you should be aware of. Firstly, you may be eligible for deductions on business expenses, which can include things like purchasing inventory, marketing, insurance, and the cost of running your store. Secondly, if you're selling prescription eyeglasses or contacts, your sales might be considered exempt from sales tax, depending on your state’s tax rules. You should also consider taxes related to employee payrolls, property, and potentially an excise tax if your state applies this to medical devices. Lastly, the IRS has section 179 which can allow businesses to deduct the full cost of certain types of property from their taxes, eyewear might fall under this category. Please consult a professional bookkeeper or certified public accountant to fully understand the potential tax considerations for your specific business circumstances.

Yes, there are unique bookkeeping practices for managing insurance claims in the optical and eyewear industry. These involve interpreting insurance payments, processing insurance claims, and managing cash flow impacts from different types of insurance claims. As every industry has unique needs and challenges, these tasks require a specialized understanding of both bookkeeping and the optical industry. Working with a professional who has expertise in these areas can ensure accurate and efficient handling of your financial records.

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.