Pet Businesses: Equipment and Supplies, the Important Differences to Know

Steven Thompson
Dec 12, 2025
3 min read

A dog groomer bathing a Golden Retriever — *A Groomer Bathing a Dog (Image Courtesy: Karlin Richardson, Pixabay)*

If you run a pet business, grooming salon, mobile pet services, boarding kennel, dog-walking company, or a veterinary clinic, you probably buy things regularly. Products or materials such as leashes, shampoos, a new grooming/examination table, or a clinic-grade ultrasound, and more!

But is everything you buy "equipment" when it comes

to your books and tax purposes?

The short answer is no, and it is crucial to understand the differences:

To keep accurate books, and
To maximize tax benefits, determine whether you should depreciate or expense.

So, let’s break it down below for equipment and supplies for pet businesses.

A calico cat resting in an open cage at a veterinary clinic — *Calico Cat Resting in a Cage at a Veterinary Clinic (Image Courtesy: Joanna Reichert, Pixabay)*

Equipment versus Consumables

Equipment is tangible, high-cost, and durable property used to run your pet business daily with a useful life beyond one year. An equipment classification (capital assets) affects your balance sheet, taxes, and cash flow. They are capitalized on the balance sheet and depreciated over their useful lives. (Source: U.S. Small Business Administration)

Alternatively, qualifying equipment (and specific software) may be fully expensed in the year placed in service under Section 179 and reported on Form 4562. This growth-investment tool is subject to limits and business-use rules, so check the current limits and regulations before claiming these deductions.

Examples of “equipment” include:

~ Bathing tubs, grooming tables, dryers, and tools.

~ Boarding cages, crates, kennels, and beds.

~ Food/water bowls and dishes.

~ Commercial washers/dryers.

~ Client seating, office furniture.

~ Product displays/shelving.

~ Sanitation station.

~ Clinic scopes, monitors, and diagnostic machines.

~ Drug storage.

~ Agility equipment, treadmills, or other training aids.

~ Exam and surgery tables.

~ Computers, printers, and POS (Point of Sale) systems/software.

~ Vans used for mobile services.

Veterinary Practice Equipment Overview:

Essential Veterinary Tools and Equipment Every Practice Needs

Medium coonhound dog resting in a dog bed surrounded by pet supplies — *Dog Resting in a Dog Bed Surrounded by Pet Supplies (Image Courtesy: Gentle Dog Trainers, Pixabay)*

On the other hand, consumables (small-dollar or low-cost purchases) are short-lived items that are frequently replaced and treated as supplies or operating expenses used up in the business and expensed in the year purchased. Many bookkeepers use a de minimis threshold, commonly $2,500 per item for entities without audited financial statements, to decide whether to expense or capitalize the purchase. But regardless, your threshold and policy should be consistent and documented.

Examples of “consumables” include:

~ Cleaning supplies including disinfectants, stain and odor removers, waste disposal bags, training pads, and paper towels.

~ Shampoos/conditioners and ear cleaning kits.

~ Pet toys, leashes and collars, treats, food, health and wellness products.

~ Single-use medical disposables such as bandages, gauze, and swabs, dog diapers and booties for paw wounds and more.

The IRS’s tangible property rules and related guidance explain when to capitalize, depreciate, or expense items.

(Source: Intuit QuickBooks)

An African American man working on his financial books and inventory — *Tag, Record, and Separate Equipment and Supplies for Pet Businesses (Image Courtesy: StockSnap, Pixabay)*

3 Practical Tips: Equipment and Supplies for Pet Businesses

Separate supplies (materials, consumables) from equipment (fixed assets) in your bookkeeping categories so your P&L and tax filings are accurate. Also, group different supplies into specific categories (supplies, medicine, treats, etc.) to streamline inventory and reordering.
Tag and Record Assets when purchased (description, cost, purchase date, serial number, business-use %). Good records make depreciation and future disposals straightforward.
Create a Fixed-Asset Policy: set a dollar threshold and an estimated useful-life category. Most pet grooming equipment and veterinary medical equipment are typically depreciated over 5 years. Whereas the business office equipment usually has a lifespan of 3-5 years. Check with your financial expert to ensure you’re using the correct depreciation formula.

Piece of Mind Bookkeeping specializes in supporting veterinary practice owners with simple, stress-free bookkeeping and financial management, tax preparation and compliance with current IRS definitions, limits, and rules to protect your business.

Reach out to us today for a FREE consultation!

Bearded man in blue floral shirt, smiling with arms crossed, leaning against red wall. Steven Thompson, Founder, Piece of Mind Bookkeeping.

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About the Author

Steven Thompson

Founder, Piece of Mind Bookkeeping

Steven brings over a decade of experience in bookkeeping, tax preparation, and financial advisory services. He specializes in helping small businesses (particularly in the pet services and veterinary space) simplify finances so they can grow with confidence.

When he’s not balancing budgets, Steven is exploring his adopted country of Brazil, playing with his dogs, or working on personal development, such as learning yoga.