Bookkeeping and Accounting for Blacksmiths

As a blacksmith, there are several specific accounting considerations you need to take into account. One of the major ones is the cost of tools and equipment. In accounting terms, these are considered capital expenses.

A capital expense (CAPEX) is a significant amount of money put in by a company to purchase, maintain, or upgrade fixed assets, such as buildings, vehicles, or equipment. In the case of a blacksmith, these would include your forge, anvil, hammers, and other blacksmithing tools.

Due to their value and long-term use, these costs are often spread over the duration of their usage in a process called capitalization. This is significant because it affects how your income will be calculated.

It's also important to note that the IRS allows businesses to write off a portion of these CAPEX as a tax deduction, through a process known as depreciation, which over time, can lead to significant cost savings.

However, keep in mind that accounting rules around capital expenses and depreciations are complex and often change. As such, it's usually a good idea for professionals in specialized industries like blacksmithing, to seek out the services of a knowledgeable bookkeeper or accountant who can help you navigate the tax landscape and ensure you're meeting your financial obligations.

Yes, Bench Accounting can definitely assist in identifying potential tax deductions for your blacksmithing profession. Our experienced team of bookkeepers has comprehensive knowledge about various allowable deductions specific to different industries and professions. They can guide you through tax-deductible expenses, ensuring you capitalize on every possible business deduction during tax season. This way, you can ensure accurate and optimized accounting for your blacksmithing profession.

Bench Accounting services can greatly help you manage your income flow during your blacksmithing profession's peak and slow seasons. With a professional bookkeeper tracking your income and expenses, it becomes easier to visualize your financial performance. This can help you understand when you're earning the most revenue and when you're spending the most resources.

Bench provides monthly financial statements letting you know exactly where you stand during all seasons, peak or slow. This data allows you to plan ahead, budget effectively, and make necessary adjustments. Additionally, if there's an unusual change, your bookkeeper will take notice and can help you understand what's happening.

They can also help strategize for the slow season by recommending effective tax strategies, providing insights into cash flow patterns, and suggesting ways to save costs. Ultimately, Bench provides a committed bookkeeper to provide you with the right advice, ensure your books are organized, accurate, and offer help whenever you need it.

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.