QB Winery Solutions

Rebottle Magnums into 750s

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This is one of those random procedures that, hopefully, you only have to do once. The scenario is that you rebottled some magnums into 750s.

The trick is to use a Journal Entry check similar to what you use when you record a bottle run. Enter what was unbottled as a negative number, and then the final amount you made in this process. It is likely that you had some spillage and sipage, and it is likely that there will be a cost difference. Record this different on the expenses tab, using the Inventory Adj account. Enter either a positive or negative number so that you have a zero dollar check.

Here is a video to show you the steps

PPP Loan with Jeanette and Tyler, Part 4

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If you have received your PPP Loan funds and are now freaking out because you are faced with even more questions than you had during the application phase, then check out the latest conversation that Tyler Willis, CPA and I recorded on Monday, April 18th, the same day that the SBA began accepting applications for the second round of the PPP Program.

  • How do I maximize the forgivable portion?
  • The tasting room is still closed, should I pay my crew anyway?
  • What documents do I need to provide to my bank?

 

 

 USCC PPP Program for Independent Contractors

 

 USCC PPP Program for Independent Contractors

 

Tracking the PPP Funds

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Congratulations on getting this loan. Sadly, many people were squeezed out. The next step is to track the use of the funds so that you maximize the forgivable portion.

Stay tuned for more details, because we are still waiting for clarification of some rules.

Tyler and I had another conversation on Monday, April 27th. You can find it HERE

Also I will post a worksheet to help you track the use of the PPP funds.

In the meantime here are some things to think about:

  1. The 8 weeks will go by quickly, so plan now how you will use the funds
  2. Reach out to your lender to find out what they will be looking for. As we have seen throughout this process, every lender is interpreting the rules a little differently.
  3. Make copies of all bills and checks IRL and put them in a PPP Forgiveness folder. This will save you a giant headache later
  4. Open a separate bank account for these funds and document every transfer out.

PPP & EIDL Updates from the News

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If you have submitted an application and haven’t heard from your bank, congratulations you are now in the Black Box Phase. I have collected and curated articles about the Payroll Protection Program to keep you updated. Read on to find out why you are not alone.

4/23/20 The bill to re-fund the PPP program passed Congress today, and is expected to be official at noon on Friday. Hopefully you have more than one application already submitted, because this round of funding will go very quickly.

4/15/20 Here are the long awaited guidelines for the non-employee businesses (still no updates about the LLCs, however)

4/14/20 Are you looking for a bank to submit your application? Here are some places to look

4/13/20 Treasury.gov

  • PPP FAQ 4/13/20 Update with #22 to #25
  • Nothing useful for the small businesses
  • Nothing yet to clarify the Sole Proprietors, LLCs, and Independent Contractors

4/11/20 Treasury.gov

  • PPP FAQ 4/10/20 Update with #19 to #21
  • The 8-week forgiveness period begins with the disbursement of the loan
  • The loan must be disbursed within 10 days of SBA approval
  •   Treasury.gov 4/7/20 FAQs

4/11/20 US Chamber of Commerce Town Hall on 4/10

  • Town Hall meeting moderator from Inc.com said they are trying to provide help “through this ridiculously difficult time”
  • Listen to the 18 min mark
  • No new information about sole proprietors and independent contractors at this time
  • Submit your applications anyway and get in the queue

4/10/20 8:00 AM PDT North Bay Business Journal

  • A banker (with a smallish bank) describes their frustrations

4/10/20 5:30 AM ET Wall St Journal

  • “Very few business owners have successfully gotten the money”
  • The SBA loan portal is inadequate: “some banks [are] inputting borrower information manually” into the SBA loan portal which takes 25 to 75 minutes per application. The system crashes, and there was along outage last Tuesday.
  • As of Thursday, 550,000 loans worth $141 billion have been approved, but only a small portion has been disbursed to businesses
  • The EIDL program has had 4 million businesses apply, totaling $383 billion, but only $17 billion was allocated by Congress
  • Banks are reluctant to disburse funds because of the confusion over the format of the promissory note. This applies to “all but a handful of banks”

4/10/20 9:59 AM ET Forbes

  • 70% of the 30 million small businesses in the US have applied to the PPP
  • A little over 50% of the small businesses have applied for the EIDL but just 4% have been approved

4/10/20 7:52 am CBS News

  • Interview with owners of a micro-brewery in Maine with production and tasting room who got funded with PPP funds
  • Cautionary tale: Their loan was approved April 6th (the Monday after the rollout) but the bank was forced by the SBA to close all approved loans within 5 days. Unfortunately most of their staff works in the tasting room, which is still closed.
  • The owners had hoped to pick the 8 weeks after the tasting room opened. So most of the funds will not be forgiven.

  • Then we were required to close immediately. If things stay the way they are, we anticipate we will be eligible for very little forgiveness — if any. And that’s pretty upsetting….Before this crisis, we had about 25 people working at Rising Tide. We have laid off all but four of our employees. They are on furlough and we hope to hire them back, but it wouldn’t make sense for us to bring them back at this point because our operations are so dramatically curtailed

 

Office Hours 4-16-20

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Here is the recording for Office Hours today. You can find the following wine accounting & QuickBooks topics in this month’s recording:

  1. One-step, Two-step Bottling (3 minute mark)
  2. Online bill pay – QuickBooks Online Vs QuickBooks Desktop (9 minute mark)
  3. QBox Plus – securing a file to specific people & sharing files (10 minute mark)
  4. Bill.com for bill pay (12 minute mark)
  5. Will the PPP be increased? (15 minute mark)
  6. Grapes bills – How do they come out of your checking account (21 minute mark)

 

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Office Hours 4-14-20

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Here is the recording for Office Hours today. You can find the following wine accounting & QuickBooks topics in this month’s recording:

  1. Virtual tastings – How to turn your events to an online environment (3 minute mark)
  2. PPP & the black box (12 minute mark)
  3. Websites that allow you to submit your PPP application (16 minute mark)
  4. Verification phase of the PPP & medical payments (23 minute mark)
  5. Paypal as a payment processor in addition to Square (30 minute mark)
  6. Costing book & Bottle Runs (32 minute mark)
  7. Cash Flow projections, discounted wines & club runs (38 minute mark)

 

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SIP Week 4 – What next for Your Winery Business?

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The shock of closing the tasting rooms, sheltering in place, and learning how to home-school your children should have subsided a bit. You have settled into a routine of baking, playing board games, and coordinating your mask with your outfit.

But you have a winery business to run. If you still don’t have the heart to tackle updating that cash flow projection ( which is still a top priority task), here are 2 suggestions for what to do while waiting for news about your PPP and EIDL applications.

Preparing your business for a post-pandemic world by Harvard Business Review

This has a nice, one page grid to help you organize your thoughts.

HBR planning grid

 

Where to start when you don’t know where to start by Predictable Success

8 minute video by Les McKeown, founder of Predicable Success (gotta love his Irish brogue … is he really filming in his bathroom?). Don’t panic when he first shows you his chart, because he whittles it down to one task for you to focus on. This is an area that the small wineries have an advantage and a strength compared to larger wineries … if they don’t get bogged down in whitewater.

PPP for Independent Contractors and Non-Employee Businesses

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Updated 4/29/20

So far, the focus of the discussion about the Paycheck Protection Program loan has been on the typical business that has employees who receive paychecks. There is another group of people who are eligible to apply for a loan. These include

  • Sole Proprietors who do not issue paychecks
  • Independent Contractors
  • Self-Employed Individuals

Many of you have not been following the discussion because you don’t think of yourselves as a business. The SBA and Treasury Department have always always included you in the regulations, however the details have been even more confusing than for the typical business. THAT SHOULD NOT STOP YOU FROM APPLYING (sorry for shouting, but you might miss out on some grant money if you don’t jump on it now).

In this video I review my recommendation for what records you should gather and how to complete the PPP application. And as with the other folks, you must line up a bank ASAP

Update 4/29/20

The SBA finally came out with specific guidelines on how these folks calculate their annual payroll. The key document is the 2019 Schedule C, line 31 which shows the net profit. (Yes, we agree, this is not a fair reflection on your real net profit, but this is what they wrote in the guidelines). If you have not filed your 2019 tax return, then fill out a blank Schedule C with the numbers that you will use on your return.

You will also need your 1099s and your bank statement that shows activity on February 15, 2020.

This report by the US Chamber of Commerce summarizes the guidelines

Tyler Willis, CPA and I discuss some details in the our PPP Loan Part 4 conversation

 USCC PPP Program for Independent Contractors

 

  PPP worksheet for non payroll applicants

  Paycheck Protection Program Application

 

Office Hours 4-9-20

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Here is the recording for Office Hours today. You can find the following wine accounting & QuickBooks topics in this month’s recording:

  1. How to track giving a client a case of wine (2 minute mark)
  2. Final review of Sync with Commerce Review & Square (5 minute mark)
  3. Using Square for a data dump and getting net sales (13 minute mark)
  4. Transaction Pro Importer – push in the data into QuickBooks (15 minute mark)
  5. Quick review of the PPP (24 minute mark)

 

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The Crush

Your first step to running a profitable winery and crushing your business goals.