How can DistilleryCFO help me?
DistilleryCFO knows and understands distillery finance and accounting--and the unique considerations of the industry.
We have worked with numerous organizations in the craft spirits industry and have a solid understanding of the key obstacles to growth and profitability.
DistilleryCFO provides strategic, anticipatory CFO services and accounting support with an eye towards supporting the growth and sustainability of your distillery.
What challenges are unique to distilleries?
Finance and accounting challenges that distilleries face include:
One issue particular to the liquor and spirits industry is the level of loss at each stage of production. Inevitably there is breakage, spillage, and natural loss in the production process that has to be captured. It can be challenging to figure out how to account for it.
Tracking the Volume through the Production Process
Distilleries must also manage the conversion of units going through the system as gallons become barrels, barrels turn into proof gallons, and the work finally results in cases of bottled spirits. Instead of using spreadsheets and external documents, getting your processes set up so that they actually track everything throughout the accounting system can result in greater insight into the true cost of your finished goods and inventory management.
Raw Materials + Labor + Other Costs
Capturing the cost of the various components that are required to initially create spirits (and then later convert into cases for sale) can be very onerous for the finance and accounting team to produce in a timely, efficient, and accurate manner. The set-up of your systems and processes and small nuances, such as how bills are entered into the accounts payable system, can have a positive or negative impact on the capturing of these costs.
DistilleryCFO shines in those moments when generalist accounting software cannot handle the finance and accounting challenges a distillery faces.
What compliance issues do distilleries face?
TTB, State Excise Tax, Sales Tax, and Employer taxes are just a few of the compliance arenas that distilleries must manage.
These regulations and taxes are vital to understand and can result in significant penalties or potential loss of licensing.
DistilleryCFO supports organizations both by ensuring that systems are in place to facilitate compliance and by advising how to best prepare for potential audits, including workers compensation audits.
Regulations can vary greatly from state to state, as well as among different authorities.
DistilleryCFO works with tax advisors to support the various considerations related to daily record keeping as well as potential strategies regarding classification of costs between capital and operations.
DistilleryCFO works with our clients to facilitate compliance with federal, state, and local tax laws. We can help you manage regulatory compliance, inventory valuation, business process restructuring, and overall financial management.
What kind of expertise can DistilleryCFO offer?
DistilleryCFO devotes a CPA-Led team that brings together all the crucial roles required for a growing distillery in one package: CFO level expertise, Controllers/Account Management, and Accounting Clerk. We allocate the work among those roles, aligning the skills required for a position with the responsibilities--just as finance and accounting departments function in larger distilleries.
Strategic CFO services, accounting, and business process restructuring are just a few of the tools DistilleryCFO uses to help grow your business. Using applications and tools specifically designed for distilleries, we can help:
Identify ongoing opportunities for streamlined processes and multiple system integration to capture the production, packaging, fulfillment, and other key processes that are regularly incorporated into distillery operations.
Supply controller-type services, including guidance with human resources, compliance, audit, debt management, banking relationships, and liaising with tax advisors.
Forecast, budget, and mode to facilitate planning an expansion, adding product lines, or other pivots to your current business operation.
Provide proactive recommendations in all areas of business infrastructure: technology, operations, and internal processes.
Can DistilleryCFO customize a package to my needs?
Absolutely! We strive to provide each client with a customized package tailored to fit that distillery’s specific needs and budget. The packages customarily incorporate assignment of a dedicated team as well as the various finance and accounting functions. We do not provide our clients with a one-size-fits-all (because that doesn’t work).
Our very first step with a new client is to meet and identify that distillery’s goals and challenges, whether it’s starting up or expanding operations. Then we can customize a strategy and develop a plan that addresses your specific concerns.
When it comes to achieving your business goals, DistilleryCFO has the experience, resources, and motivation to help your distillery succeed. We focus on the full scope of the company, tailoring the finance and accounting around that business. We strive to allow you to focus on the important things — distilling your spirits.
How will DistilleryCFO work with me?
Meet to define meaningful reporting and identify key performance indicators
Produce and review financial reports monthly
Provide informal commentary when requested or necessary
Build and develop accounting processes
Supervise the accounting operation
Coordinate with your tax accountant (including quarterly and year-end planning/compilation)
Liaise with your banking partners and step up the credibility of your finance and accounting function by having a true CFO at the helm
Generate meaningful, accurate, and timely reports, allowing you to make informed decisions that facilitate your company’s growth
Can DistilleryCFO help me plan for the future?
Yes! DistilleryCFO focuses on anticipating the future. We can create financial and project forecasts to support growth planning and strategy. Quarterly client meetings allow us to review your financial position and performance.
Do you have client references available who we could contact?
No problem! Just ask and we can provide them.
Did we miss your question? Let us know if there are other questions you would like answered as you decide how you move forward.
Robin H Thieme, CITP, CGMA, CPA
CEO, KBS CFO LLC
Interested in learning more?
Robin & Distillery CFO have been featured in:
Accounting software solutions we work with include:
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10423 Armory Ave
Kensington, MD 20895