At Bench Accounting, we provide regular bookkeeping updates tailored to your bakery's unique needs. Got urgent inquiries that simply can't hold off? Rest assured, our top-notch team will respond to you in under one business day.
At Bench Accounting, we understand that running a successful bakery involves more than just perfecting recipes, it also means managing finances accurately. Our platform allows you to automate data inputs from most major providers, eliminating common errors. We've partnered with renowned merchants like Gusto, Stripe, Shopify, and Square to ensure your bakery's finances are always spot-on. Craft delectable treats while we keep your books neat and tidy.
Wave goodbye to mountains of receipts and laborious manual record-keeping—we automate the data directly from your linked accounts. Gain insights from one central dashboard so you can effortlessly understand the financial wellbeing of your bakery and make strategic decisions.
DR. BUKKY KOLAWOLE
As a bakery owner, you are entitled to claim certain specific expenses for tax purposes, these include:
- Cost of raw materials and supplies needed for baking
- Renting expenses for your shop space
- Salaries or wages paid to your staff
- Costs associated with marketing and advertising
- Depreciation of equipment used in your bakery
- Maintenance and repair costs
- Professional service costs, such as bookkeeping and tax preparation
- Utilities like electricity, water, and internet bills
- Insurance coverages specifically for your bakery business
It's critical to keep detailed records of these expenses throughout the tax year, as they can substantially reduce your taxable income. Always consult with a professional to ensure you're maximizing your deductions while staying compliant with tax laws.
Accounting for inventory in the baking industry can be a challenging task, especially considering perishable goods. However, it's essential to maintain accurate records to avoid overproduction and wastage. The primary accounting method used in this industry is the First In, First Out (FIFO) method. This method assumes that the first goods purchased are the first to be sold, which mirrors the production and sale process of bakeries, as products need to be sold before they reach their expiration date.
Moreover, because of the rapid turnover of goods, bakeries must regularly perform physical inventory counts to ensure that their records match what is actually available in terms of raw materials and finished goods. These counts can then be used to track waste, identify trends, monitor theft and control costs.
Lastly, in the baking industry, it is crucial to account not only for the cost of the raw materials but also for the indirect costs associated with production (like labor and overheads). These costs should be a part of the product costing, which helps in pricing decisions and determining profitability. A reliable bookkeeper can help to manage these elements efficiently.
A solid bookkeeping system that is ideal for managing your bakery business's daily cash sales and credits includes cloud-based accounting software such as Benchh. These platforms provide features for tracking sales, monitoring expenses, managing inventory, and handling credits. Coupled with a professional bookkeeper who is knowledgeable about the bakery industry, these systems can offer invaluable insights into your business's financial health.
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.