When looking at your financial reports, we recommend always starting with a collapsed view, to get a high-level understanding of your business performance. After that, you can drill down into subaccounts to see what is really driving the results you are seeing at a high level. One advantage of using parent accounts is that you can view your financial reports in both collapsed and expanded forms. When you view your reports in a collapsed form, all of the subaccounts will fold up into the parent account. QuickBooks will allow you to do how is sales tax calculated this, as well as most other financial reporting platforms including Fathom, which is the platform we use for performance reporting with our clients.
Allocating costs correctly
To make things really simple for you, we’ve created a template chart of accounts that you can use for your winery. The Expense section of your chart of accounts contains your “GS&A” accounts–that is, your General, Selling, and Administrative expenses. You should consult with your accountant to see how they prefer this section of the chart of accounts to be organized. One note, however, HVAC Bookkeeping you should never see a balance in an account called “Opening Balance Equity.” If you have one, you can guarantee your books need a bit of cleanup. For this reason, we keep the equity accounts In our winery chart of accounts template, very generic. Sometimes the accounts you need will be dictated by your business circumstances.
How does cellar accounting differ from other types of wine accounting?
- Crafted is built in Oracle NetSuite, a global leader in ERP software.
- The payroll module works for many people, but it’s not our favorite.
- If you’re already using Dext or Bill.com, these platforms have the same functionality, so you may not need this function in QuickBooks.
- Knowing winery accounting which category or categories you fall into will help ensure that you track the correct numbers.
- You should also make sure to review your retirement contributions and make sure you are on track.
However, we’ve only touched the tip of the iceberg when it comes to keeping healthy books for your wine business. If you have more questions, need confirmation, or just want someone to take bookkeeping off of your hands altogether, we’re here to help. The Cost of Goods Sold (COGS) accounts include all of the costs that go into generating your revenue.
What role does production accounting play in a winery’s financial management?
Without thoughtful attention to your chart of accounts, your business performance will be nearly impossible to interpret. You may not even need all of these on your chart of accounts, depending on your business circumstances (for instance if you own or rent your land and buildings). The chart of accounts generally lists the most liquid assets first (cash and equivalents) and moves from there to the less liquid assets (property and equipment).
Wineries are unique operations, and their accounting and bookkeeping must be unique to match. Getting bogged down or lost trying to handle it all in-house is a recipe for subpar growth, or worse. If you are in the wine industry and have questions about accounting or bookkeeping, Protea Financial is here to help. We understand the unique needs of the wine industry and can provide expert guidance on all financial matters. Whether you need assistance setting up your winery bookkeeping books or preparing for tax season, we can help you navigate the complexities of the wine business.