How to Track Commissary Fees & Event Costs
- Lauren Twitchell
- Dec 2, 2025
- 3 min read
If you’re a food vendor, you already know that your costs don’t stop at ingredients. There’s the commissary kitchen you rent, the event fees you pay, and the supplies you pick up last minute at Restaurant Depot or Walmart.
And if those costs aren’t tracked properly, your profit isn’t real—it’s just a guess.
As a former IRS Agent, I can tell you that food vendors often understate these expenses or record them inconsistently, which leads to messy books and inflated income come tax time.
So today, let’s break down exactly how to track commissary fees and event costs—the right way—so your numbers actually reflect what’s happening in your business.
1. Start With Separation
First things first: never mix your commissary and event costs together.
They may both be “vendor expenses,” but they serve different purposes—and the IRS views them that way too.
✅ Commissary Fees = overhead (fixed cost to operate)
✅ Event Costs = direct business expense (tied to specific sales)
If you lump them together, you lose clarity on which events actually make you money.
2. Commissary Fees: Treat It Like Rent
Your commissary kitchen is just like your storefront—it’s an operational cost.
Record it monthly under a category like “Commissary Rent” or “Kitchen Rental Fees.”
Be sure to include:
Monthly or hourly rental fees
Storage locker fees
Cleaning or maintenance charges
Any required security deposits
💡 IRS Tip: According to IRM 4.10.7.3.8, recurring operating expenses (like rent) are deductible when paid or incurred—just make sure they’re clearly documented with invoices or receipts.
If you rent space from another vendor or shared kitchen, ask for monthly statements or receipts showing the amount paid and date. It keeps you compliant and audit-ready.
3. Event Costs: Track by Event, Not Month
Event costs change constantly—booth fees, permits, travel, and even temporary help.
The key is to track these per event rather than monthly totals. This way, you can see which markets are worth your time and which ones are draining profit.
For each event, record:
Event name and date
Booth or vendor fee
Travel and parking costs
Food and supply purchases for that event
Any staffing or helper pay
If you sell at five markets a month, list each one separately in your tracker. It takes an extra five minutes—but it could reveal hundreds in unnecessary spending.
4. Create a Simple Tracker (That Actually Works)
You don’t need expensive software—Excel works perfectly if it’s structured right.
Here’s a simple layout you can build:
Event Name | Date | Booth Fee | Commissary | Supplies | Travel | Total Cost | Sales | Profit/Loss |
Eustis Market | 12/6/25 | $100 | $50 | $140 | $20 | $310 | $540 | $230 |
This shows your real numbers—so you can stop guessing which events are profitable.
5. Use Bank Statements as a Cross-Check
Even when you use cash at events, your bank and Square deposits tell the real story.
At month’s end, cross-check:
Deposits from Square/Stripe
Commissary charges (same day each month)
Vendor or permit fees
Any outlier transactions (like fuel or last-minute supply runs)
This confirms your event totals match your income—and prevents underreported deductions.
6. Watch for “Hidden” Costs
Food vendors often overlook:
Ice, propane, or fuel costs
Vendor insurance premiums
Temporary help (friends or family paid in cash)
Credit card reader fees
Overnight storage or delivery costs
These are all legitimate business expenses—but only if you record them.
💡 IRS Reminder: During cash-based audits (IRM 4.10.4.3.3), agents specifically look for missing cost documentation. If you report $10,000 in sales but can’t prove related expenses, they’ll assume higher profit margins.
7. Label Everything at the Source
The easiest way to avoid confusion later is to label expenses when they happen.
Write directly on receipts:
“Eustis Market – supplies”
“Commissary – December rent”
“Gas – event travel”
Future-you will thank past-you when tax season hits.
8. End-of-Season Review
Before filing taxes or restarting for spring, run a quick event summary:
✅ Total booth fees for the year
✅ Total commissary fees
✅ Total event supply costs
✅ Average profit per event
This gives you a clear snapshot of what worked—and helps you price smarter for next season.
9. Need Help Organizing It?
If your receipts are all over the place, we can help.
Our Cleanup Packages are built specifically for mobile businesses, market sellers, and festival vendors who want clean, reconciled, and IRS-ready books before the next event season.
If you don’t track it, you can’t improve it.
When you separate commissary fees and event costs, your profits—and your peace of mind—go way up.
Winter is the best time to build this habit before the next season starts.
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