Bookkeeping for Canton First Monday Trade Days Vendors

October 30, 2026

Trade days vendor booth bookkeeping

First Monday Trade Days runs Thursday through Sunday before the first Monday of every month. For a vendor, that means twelve short, high-volume selling weekends a year, mostly in cash and card swipes, with a lot of spending in between on inventory, booth rent, fuel and lodging.

That pattern creates three bookkeeping problems:

Sales tax is due on every taxable sale, and the Comptroller expects a return even in months you sell nothing.
Cash sales are easy to lose track of. If a sale is not written down, it is hard to prove later, and so is the sales tax you owe on it.
Your biggest costs happen away from the booth. Inventory runs, mileage and motel nights are deductible, but only if you record them when they happen.

This guide walks through what to set up before your next trade days weekend and what to do each month after you pack up.

Step 1: Get your sales tax permit and know your rate

Every vendor who sells taxable items at Canton needs a Texas Sales and Use Tax Permit. First Monday’s own vendor page states that Texas law requires one, and the Comptroller treats flea markets and trade days as places of business. The permit is free and you apply online through the Comptroller.

The “occasional sale” exemption that covers garage sales does not help you here. It does not apply to flea markets or similar events where you pay a booth or space fee. If you rent a space at Canton, plan on collecting tax.

Collect the Canton rate, not your home rate. Tax is based on where the event is held. Inside Canton city limits the combined rate is 8.25%:

Tax	Rate
Texas state	6.25%
City of Canton	1.50%
Canton Economic Development Corp.	0.50%
Total	8.25%

If you also sell at other markets, collect each location’s rate and confirm it with the Comptroller’s Sales Tax Rate Locator before you go.

Who sends the tax in? If your venue has a central checkout, the market collects and remits the tax, and you report those sales as total sales but not taxable sales. If you take payment at your own booth, which is how most Canton vendors operate, you collect, report and pay the tax yourself.

Other rules that affect your books:

Your booth or space rent is not subject to sales tax.
With a permit, you can buy inventory tax-free for resale by giving your supplier Form 01-339, the Texas Resale Certificate.
You must file a return monthly, quarterly or yearly, as assigned, even when you made no sales. Returns are due the 20th of the month after the period ends.
A late return costs a $50 penalty. Filing and paying on time earns a 0.5% discount on the tax you collected.
Your receipts must either show the tax separately or state that tax is included in the price.

Step 2: Track every sale during the weekend

The goal is one record per weekend that shows total sales, taxable sales and tax collected, split by how you were paid.

Use one card reader or point-of-sale app for all card and app payments. Set the tax rate to 8.25% in the app before Thursday morning so tax is added and tracked on each sale.
Ring up cash sales in the same app using its cash option. If you cannot, write each cash sale on a numbered sales sheet with the date, item and amount.
Count your cash drawer at the end of each day. Start with the same float every morning. Ending cash minus the float should match the day’s recorded cash sales.
Keep business money separate. Deposit cash and card payouts into a business checking account, not a personal one. Mixed accounts are the most common reason vendor books cannot be reconciled.

After the weekend, compare the app’s sales report to the deposits that hit your bank. Card payouts arrive minus processing fees, so record the full sale as income and the fee as an expense.

Step 3: Record the costs of selling at Canton

Most trade days expenses are ordinary business deductions. Record each one with a date, amount, vendor and a short note on its business purpose, and keep the receipt.

Expense	What to keep
Booth or space rent	Rental agreement and payment receipt for each month
Inventory and supplies	Supplier invoices; give suppliers your resale certificate so you are not charged tax
Mileage	A log of each trip: date, start and end point, miles, purpose
Lodging and RV hookups	Receipts for nights you stay to work the market
Card processing fees	Monthly statement from your card reader or app
Booth equipment	Receipts for tents, tables, displays, weights and lighting
Signs, bags and packaging	Receipts
Paid help	Records of who you paid, how much and when

Mileage: The IRS standard business rate for 2026 is 72.5 cents per mile for driving from January 1 through June 30, and 76 cents per mile from July 1 on. A round trip from Dallas to Canton is roughly 120 miles, so twelve market weekends add up quickly. You only get the deduction if you keep a log.

Paid help: If you pay a helper $2,000 or more during 2026, you may need to issue a Form 1099-NEC. That threshold rose from $600 starting with 2026 payments.

Step 4: Track inventory so you know your real profit

Inventory you buy is not deducted all at once. You deduct the cost of the items you actually sold during the year, called cost of goods sold:

Beginning inventory + purchases during the year − ending inventory = cost of goods sold

To make that number accurate:

Record what you paid for each item or batch when you buy it, including freight.
Count your inventory on December 31. Count what is in your trailer, storage unit and booth.
Track profit by product type. Antiques, home decor and handmade goods often carry very different margins. Knowing which categories make money tells you what to restock and what to stop buying.

If you make what you sell, include materials in your inventory cost. Your own time is not an inventory cost.

Step 5: Plan for income tax

Texas has no state income tax, but your trade days profit is still subject to federal income tax and self-employment tax.

All income counts, cash included. A payment app or card processor only has to send you a Form 1099-K if you had more than $20,000 in payments and more than 200 transactions in the year. Staying under that line does not make the income tax-free.
Self-employment tax is 15.3% of your net self-employment earnings, on top of income tax. Clean expense records lower the profit both taxes are based on.
Make quarterly estimated payments if you expect to owe $1,000 or more for the year. Federal estimates are generally due April 15, June 15, September 15 and January 15.
LLCs and corporations have Texas franchise tax responsibilities. Sole proprietors are not subject to franchise tax. If your vendor business is an LLC, confirm your franchise tax filings each year.

A simple habit: move a fixed share of each weekend’s profit into a separate savings account for taxes so the quarterly payment is already set aside.

A monthly routine for trade days vendors

Because Canton runs on a monthly cycle, your books can too. Do this in the week after each market weekend:

Download the weekend’s sales report from your card reader or point-of-sale app.
Add any cash sales recorded on paper.
Match card payouts and cash deposits to your business bank account.
Enter booth rent, inventory purchases, fuel, lodging and other receipts.
Update your mileage log for the trip.
Set aside the sales tax you collected so it is ready when your return is due.
Move your tax savings amount into its own account.
File your sales tax return by the 20th if a return is due that month.

At year end, count inventory, total your mileage and send your records to your accountant.

Frequently asked questions

Do I need a sales tax permit to sell at Canton First Monday?

Yes, if you sell taxable items. First Monday requires it, and the occasional sale exemption does not apply when you pay for a booth or space.

What sales tax rate do I charge in Canton?

8.25% inside Canton city limits: 6.25% state, 1.5% city and 0.5% Canton Economic Development Corp. Confirm your exact location with the Comptroller’s Sales Tax Rate Locator.

Do I file a sales tax return if I skip a month?

Yes. Permit holders must file every period they are assigned, even with no sales.

Is my booth rent taxable or deductible?

Booth rent is not subject to sales tax, and it is a deductible business expense on your income tax return.

I didn’t get a 1099-K. Do I still report my sales?

Yes. The 1099-K threshold only decides whether a platform sends you a form. All sales, cash and card, are taxable income.

I’m from out of state. Do these rules apply to me?

Yes. Out-of-state sellers at Texas markets need a Texas permit and must collect Texas state and local tax.

Get help with your trade days books

SmartAccounting Firm sets up and maintains bookkeeping for market and trade days vendors from Mabank, just down the road from the Canton grounds in Van Zandt County. Kathryn Lui has kept books for more than 20 years. Services include compliance bookkeeping with a monthly close, expense reduction, Profit First profit growth strategy, KPI tracking and reporting, and tax planning through the year. Your returns stay with your CPA or EA, and Kathryn works alongside them so nothing is a surprise. Book a free consultation to get your books in order before your next Canton weekend.