ATO benchmarks for cake shops
Cake shops and patisseries sell cakes, pastries and desserts over the counter and as made-to-order celebration cakes, while butter, cream, chocolate, other ingredients and staff time are their main costs.
General information
Total expenses as a share of turnover
Low and high end of each published range
| Turnover range | Financial year | Low end | High end |
|---|---|---|---|
| $65,000 to $300,000 | 2023-24 | 62% | 79% |
| $65,000 to $300,000 | 2022-23 | 60% | 76% |
| $300,001 to $600,000 | 2023-24 | 78% | 87% |
| $300,001 to $600,000 | 2022-23 | 80% | 89% |
| More than $600,000 | 2023-24 | 83% | 91% |
| More than $600,000 | 2022-23 | 81% | 90% |
Australian Taxation Office, Small Business Benchmarks, key ratios for 2023-24 and 2022-23 (data.gov.au), licensed under CC BY 2.5 AU. Checked 15 Oct 2026.
Cost of sales as a share of turnover
Low and high end of each published range
| Turnover range | Financial year | Low end | High end |
|---|---|---|---|
| $65,000 to $300,000 | 2023-24 | 28% | 37% |
| $65,000 to $300,000 | 2022-23 | 29% | 36% |
| $300,001 to $600,000 | 2023-24 | 30% | 35% |
| $300,001 to $600,000 | 2022-23 | 31% | 38% |
| More than $600,000 | 2023-24 | 31% | 37% |
| More than $600,000 | 2022-23 | 31% | 36% |
Australian Taxation Office, Small Business Benchmarks, key ratios for 2023-24 and 2022-23 (data.gov.au), licensed under CC BY 2.5 AU. Checked 15 Oct 2026.
What sits behind these figures in the books
- Cost of sales covers the butter, cream, chocolate, flour, fruit and decorations used in what is sold, adjusted for ingredients still on hand at the end of the period.
- Deposits on custom and celebration cakes are tracked until the order is picked up, so takings in the books match the cakes actually handed over in the period.
- Cake boxes and boards are kept in the same account every period, and display fridges or mixers bought to keep are recorded as equipment rather than as stock.
Sources
- Small Business Benchmarks, 2023-24 Benchmarks (key ratios)
Australian Taxation Office. 2023-24 financial year, released 16 March 2026. Checked 15 October 2026.
Based on Australian Taxation Office data, Small Business Benchmarks, 2023-24 Benchmarks, licensed under CC BY 2.5 AU Licence: CC BY 2.5 AU.
- Small Business Benchmarks, 2022-23 Benchmarks (key ratios)
Australian Taxation Office. 2022-23 financial year, released 17 March 2025. Checked 15 October 2026.
Based on Australian Taxation Office data, Small Business Benchmarks, 2022-23 Benchmarks, licensed under CC BY 2.5 AU Licence: CC BY 2.5 AU.
Get your books in order
Cost of sales and total expenses are only as reliable as the books behind them. Tell us how your business runs and we will suggest a bookkeeping plan that fits.