(720) 333-7274 • Mon–Thu 8–4, Fri 8–12 MT · Castle Rock, CO
Bakeries specialty

Bakery accounting — retail, custom, wholesale.

Inventory math on flour, sugar, butter; custom-order deposit handling; wholesale account A/R; and Colorado cottage food rules where applicable.

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Bakeries balance three revenue patterns: walk-in retail, custom-order events (cakes, weddings, birthdays), and wholesale accounts (cafés, restaurants, hotels). Each has its own margin profile and cash-flow signature.

We work with retail bakeries, custom cake studios, and wholesale-focused operations.

What we handle

  • Retail vs custom vs wholesale revenue separation.
  • Custom-order deposits as deferred revenue.
  • Wholesale A/R aging by account.
  • Inventory tracking on dry goods and packaging.
  • Cottage food rules guidance for Colorado home-based operators.
Field note: wholesale margin

A bakery doing $40K/mo in wholesale to local cafés thought it was a profit center. After we re-coded delivery labor, packaging, and the discounted-from-retail margin, wholesale was running at 12% gross — vs 58% on walk-in retail. They kept their two best wholesale accounts and dropped four others.

If / Then

If you take custom-cake deposits, deferred revenue is required.
If you do wholesale, A/R aging by account matters.
If you sell to multiple home-rule cities (wholesale), sales tax mapping matters.

The Bottom Line

Real margin per channel, deposits accounted right.

From $400/month.

Frequently asked questions

Custom cake deposits?

Liability at deposit, revenue at event/delivery.

Software?

Square or Toast for POS, QuickBooks for accounting. Custom Cake software like CakeBoss for the order side.

Cottage food?

Colorado allows certain home-baked goods under cottage food rules. We help you understand revenue thresholds and what triggers commercial licensing.

Sales tax?

Bakery food is taxable retail at state level; rules vary by city.

Reviewed by

Kali Gilliland · Founder & Lead Accountant

Kali Gilliland is the founder of TBA & Associates and has spent more than a decade serving small businesses across the Denver metro and Colorado Springs corridor. She handles everything from monthly bookkeeping to multi-state tax planning, with a long-term client roster that goes back 10+ years.

Ready for an accountant who picks up the phone?

Get a quote in under 24 hours. No long contracts, no jargon — just clean books and honest tax planning from a Denver-area firm trusted by small businesses for more than a decade.