By Wayne Nisley

For many sawmill owners, tax season has a way of sneaking up. One day you’re trying to keep logs moving through the mill, and the next day your accountant is asking questions you wish you had thought about a few months earlier. The truth is, good tax prep for a sawmill doesn’t start in March. It starts well before the year ends.

Sawmills are unique businesses. There’s a lot of money tied up in equipment, buildings, inventory, and repairs. Add in fuel, trucking, custom work, and outside log purchases, and things can get complicated in a hurry. That’s why staying organized throughout the year can make tax season far less stressful.

One of the biggest areas that affects taxes is equipment. New purchases, upgrades, and major repairs all matter, but they’re not treated the same. Something as simple as whether a cost is considered a repair or an improvement can change how it shows up on your return. Keeping clear notes and invoices helps your accountant make the right call instead of guessing later.

Inventory is another area that often gets overlooked. Logs on the ground, lumber in the yard, and even parts on the shelf can factor into year-end numbers. Taking a little time to know what you have on hand near the end of the year can save confusion later. It doesn’t need to be perfect—just reasonable and consistent.

Expenses like fuel, trucking, and outside services add up fast in a sawmill operation. Having those records in one place instead of scattered across glove boxes and shop desks makes a big difference. A simple folder or envelope system, paper or digital, can go a long way.

Many sawmill owners also find it helpful to talk with their accountant before the year is over, not after. A short conversation in the fall can help with timing decisions—whether it makes sense to buy equipment now or wait, finish a project this year or push it into the next, or handle income and expenses more evenly.

Tax prep will probably never be anyone’s favorite part of running a sawmill. But a little planning, a bit of organization, and clear communication can turn it from a scramble into a manageable task. That leaves more time and energy for what matters most—keeping the mill running and the crew working.

Disclaimer: This article is provided for general information purposes only. Sawmill Exchange and its contributors are not tax professionals, and this content should not be considered tax, legal, or financial advice. Always consult a qualified tax professional regarding your specific situation.