Tailored Accounting for Fashion Industry Professionals

In the fast-paced world of fashion, precise and industry-specific accounting is crucial. Whether you’re running a fashion label, managing a modeling agency, or working as an independent designer, tracking costs and revenue streams is essential. We specialize in managing complex financials, including cost of goods sold (COGS) for fashion products, inventory accounting under ASC 330, and revenue recognition in line with ASC 606. Our services ensure that every detail, from fabric purchases to international sales, is accurately recorded, giving you a clear financial picture to make informed decisions.

Financial Planning for Sustainable Growth

Fashion is a dynamic industry, requiring careful financial planning to sustain and grow your brand. We offer tailored financial planning services that align with your long-term goals, whether it's expanding your product line, entering new markets, or investing in sustainable practices. Our approach includes cash flow management, budgeting for seasonal fluctuations, and strategic planning for capital investments. By forecasting revenue and managing expenses effectively, we help fashion professionals secure the financial stability needed to thrive in a competitive market.

Business Structuring for Fashion Enterprises

Choosing the right business structure is vital for protecting your assets and optimizing your tax position. Whether you’re a fashion designer, boutique owner, or fashion photographer, we provide expert advice on forming the appropriate legal entity—be it an LLC, S-Corp, or C-Corp. For instance, structuring as an S-Corp can provide tax advantages by allowing you to reduce self-employment taxes through reasonable salary allocations, while still benefiting from pass-through taxation. Our goal is to ensure that your business structure supports your creative vision while providing the financial flexibility and protection you need.

Risk Management and Insurance

The fashion industry is exposed to various risks, from supply chain disruptions to intellectual property theft. We offer comprehensive risk management services that include advising on appropriate insurance coverage, such as product liability insurance, professional liability insurance, and business interruption insurance. Additionally, we help fashion professionals implement internal controls and risk mitigation strategies to safeguard their business assets. Our goal is to protect your brand from potential financial losses, ensuring that you can continue to focus on creative innovation.

Services and Offerings

Tax Strategies for Fashion Companies and Designers

Taxation in the fashion industry comes with unique challenges, from managing international sales to optimizing deductions for design costs. The IRS provides specific tax benefits, such as the Research and Development (R&D) Tax Credit, under IRC Section 41, which can be claimed for innovative design processes. We help fashion designers and companies maximize these opportunities by identifying eligible expenses and ensuring proper documentation. Additionally, we navigate the complexities of sales tax compliance, including understanding nexus laws in different states, so your business remains compliant across all markets.
Inventory Management and Cost Control

Effective inventory management is critical in the fashion industry, where trends and seasons dictate sales cycles. We assist fashion companies in implementing robust inventory control systems that align with the latest accounting standards, such as ASC 330 for inventory valuation. By optimizing inventory levels and controlling costs, we help you avoid overstocking or stockouts, which can impact profitability. Our services include managing inventory turnover ratios, analyzing cost of goods sold (COGS), and advising on markdown strategies to ensure that your inventory management supports both profitability and brand integrity.
Managing Royalties and Licensing Agreements

For fashion designers and brands, licensing deals and royalty agreements are common revenue streams that require careful management. We assist in structuring these agreements to ensure favorable terms and proper reporting of royalty income. Our services include advising on the tax implications of licensing agreements, ensuring compliance with ASC 606 (Revenue Recognition), and managing the financial aspects of intellectual property rights. By accurately tracking and reporting royalty income, we help you maximize revenue from your brand's intellectual property while staying compliant with tax regulations.
Audit and Assurance Services for Fashion Brands

Transparency and accuracy in financial reporting are crucial for fashion companies, especially those seeking investment or undergoing audits. We provide audit and assurance services tailored to the fashion industry, including financial statement audits, internal audits, and compliance reviews. Our services ensure that your financial records meet the highest standards of accuracy and transparency, enhancing credibility with investors, lenders, and other stakeholders. By conducting thorough audits, we help you identify and address any financial discrepancies, ensuring that your business operates smoothly and efficiently.