QB Winery Solutions

Office Hours 1-28-20

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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. Units of Measure, getting started (1 minute mark) **I solved George’s problem and added a comment to the Units of Measure procedure
  2. Details on a new course – The Costing Book Checklist (5 minute mark)
  3. AMS and Vintrace to QB  – Converting from those programs to QB (7 minute mark)
  4. What POS programs do you recommend? Vinespring (11 minute mark)
  5. We’re donating all bottle proceeds to a special cause – How do I record it? (12 minute mark)
  6. 1099 review of new CA law (13 minute mark)
  7. Should I use Vinespring as a POS or Square? – It depends on the size of your winery (15 minute mark)
  8. VinoShipper – A discussion of workflows in VinoShipper (20 minute mark)
  9. Data dump for the Push-in Method – What does a transaction report look like? (24 minute mark)
  10. Bottle runs – How do I track 1st off and last off? (26 minute mark)
  11. Let’s chat about Kegging Wine (28 minute mark)

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Cash Basis vs Accrual

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In honor of tax season, I am unlocking a lesson in the How To Calculate the True Cost of Your Wine so that everyone can hear this information.

This lesson explains the difference between Book Cost and Tax Cost and how the recent tax changes have affected this issue.

The critical points are:

  • You must use True cost/Accrual in your QuickBooks file so that you have accurate numbers to manage the business.
  • The tax preparer can convert from True cost/Accrual to Tax cost/Cash basis in their work-papers (but you cannot convert in the other direction)

For the non-accountants, in this context these terms mean the same thing:

Book cost = True cost = Accrual

Tax cost = Cash basis

We have an on-demand lesson for the tax preparers on how to convert from Accrual cost to Cash basis costing GO HERE .

We also offer live seminars with CPE on this very topic, led by Tyler Willis, CPA . For the schedule GO HERE.

2020 SVB State of the Wine Industry Report

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The annual State of the Wine Industry Report prepared by Rob McMillan and his team at the Silicon Valley Bank Wine Division is here! It’s hot off the press, so I have not had a chance to read it. I watched the first webinar on January 14th, and I will watch the second webinar on January 22nd.

In the meantime, check out Rob’s blog where you can get links to the recordings of the webinars.

2020 SVB Annual Report

 

Cheers!

Jeanette

Office Hours 11-26-19

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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. Part 1: I purchased a barrel from my client. I also owe the same client a credit from a previous production contract -How do I record this transaction? – at the .41 min. mark
  2. Part 2: How do I convert my client’s bill into a credit- at the 1.25 min mark
  3. How do I create a statement? at the 7.55 mark
  4. I lost a barrel of wine. How do I track the cost of wine that was lost? – at the 15.42 min mark
  5. Grape Bills – How do I record the grapes that were over my contract amount?  I did not have to pay for them – at the 16.34 minute mark
  6. I did not order enough glass or corks – How do I account for the wine I did not bottle? – at the 17.49 minute mark
  7. How do I record use ONE bill to record my grape bill, but pay the bill per my installment agreement? – at the 19.50 minute mark
  8. I have 4 users who need to access our QB file – 2 users only have access to MacOS – Should I use QBO? – at the 27.02 minute mark

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Office Hours 10-29-19

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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. Part 1: I watched the Grapes, Grapes Grapes course, but I am a VERY Small winery – Do I have to use the clearing account to record my grapes? – at the .51 min. mark
  2. Part 2: Why should I use Purchase Orders during harvest? – at the 3.11 min mark
  3. How do I find if the cost inventory is set up in the file? (We show how to find the report and how to use it) at the 22.18 mark
  4. What are the 5 Fundamentals of a winery QuickBooks File – at the 36.53 min mark
  5. Is there a more simple way to do the costing book? – at the 43.38 minute mark

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How to Record Shiners You PURCHASED

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A winery owner asked me this question recently:

Jeanette –
I have a question of the proper way to make a new entry. We purchased 220 cases of Sparkling wine from Rack & Riddle to sell under our brand.
So, the initial entry into the system is for finished case goods 240 cases @ $108….given it’s not coming out of bulk…what is the proper entry?
Thanks – Mark

The way that shiners are entered is fairly straightforward, however it depends on the situation (doesn’t it always…)

Scenario #1 – The shiners were labeled and finished by the vendor – this is super simple
Scenario #2 – You bought shiners, labels, and foils from different vendors and hired a crew or bottling line to apply the lables – this has a few more steps

For scenario #1

  1. Create the item as usual
  2. Create a bill using the item tab to record the number of units and total cost. Remember to use the same units for this SKU as for all the others, so if you use “bottles” you will need to convert the number of cases to bottles. Also, ignore the cost that you were quoted. Enter the total cost of the actual bill. QuickBooks will calculate what your actual cost per bottle was.

That’s it…just 2 steps. Of course, you will need to pay the bill at some point.

For scenario #2

  1. Create current asset account called “Shiners” (or something like that)
  2. Create a sub-account for the specific SKU (I am assuming you might do this again in the future)
  3. As the bills (or checks and credit card charges) for the different components show up, record all of these to the SKU sub-account.
  4. If these were bottled during a regular bottle run so the labeling labor shows up on the bottler’s bill, calculate the portion of the cost for the shiner SKU and record that amount to the SKU Sub-account.
  5. After the labels have been applied and you are ready to bring them into inventory, create a Journal Entry check and enter the information on the item tab as usual. For the total cost of the wine, look at the total amount of the SKU sub-account.
  6. On the expenses tab, use the sub-account name and enter the amount as a negative number.
  7. When you save the journal entry check, the total for the sub account should be zero.

The tricky part of this procedure is that you will be recording the components with a different workflow than usual. This may be confusing, but trust me…it is much simpler than including these bottles on the Bottling worksheet in the costing book.

Cheers!

Office Hours 09-24-19

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Here is the recording for Office Hours. The topics that came up were:

  1. I am moving my accounting from spreadsheets to QuickBooks – Which QuickBooks type and version should I use? – at the 1 min. mark
  2. How to get a “jump start” on your costing book – at the 8 min mark
  3. Tips for recording bottling cost – At the 11 min mark
  4. Counting inventory to keep your cost accurate – including corks and foils! – at the 12 min mark
  5. How to record bottling expenses using the chart of accounts – at the 17 minute mark
  6. True up Bottle Pieces and where to put the inventory adjustment – at the 23 minute mark

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Office Hours 08-27-19

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Here is the recording for Office Hours. The topics that came up were:

  1. Creating an invoice for a client that includes reimbursable expenses. (How to enter a bill or check with the reimbursable expense and tag a client so you can add to their invoice.)
  2. Moving custom crush bulk wine to COGS; – at the 11.50 min. mark.

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2019 DTC Surveys Compare Results

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The Wine Industry Network compared 2 major reports on DTC sales and marketing trends. I typically read industry reports with a grain of salt because they tend to refer to the large-winery-wine-industry, which is very different from the small-winery-wine-industry. However, I noticed the most successful wineries I work with have already implemented the article’s advice.

According to Dawn Dolan of the Wine Industry Network Advisor, these are the Quick Take Aways:

  • Online sales are increasing; be sure your e-commerce is accessible and user-friendly for not only your computer-using clients, but optimized for ease of use from your mobile users. Online sales represent the biggest opportunity for growth.
  • Utilize your tasting room for client acquisition.
  • The better trained your tasting room personnel, the higher the returns. Invest in staff training.
  • High intensity marketing = high returns. Develop a multi-pronged marketing plan.

To read Dawn’s entire article Click here

The reports discussed in the article were:

AskABookkeeper.com – Interview with Jeanette Tan

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When I was at the Scaling New Heights conference last June (keeping up with my fellow ProAdvisors), I met Ingrid Edstrom and “Penny” from www.AskABookkeeper.com. Ingrid is a ProAdvisor and has been recognized as one of the accounting professions Top 40 Under 40. She has an active Facebook group and a YouTube Channel where she answers questions about bookkeeping.

I was Ingrid’s guest during her First Friday Facebook Live event. While she primarily serves travel agencies, we both agreed that monitoring the Gross Margin of each sales channel is a critical financial metric that can provide a wealth of useful information.

To find out who “Penny” is you will have to watch the video.

Click here for the YouTube video Take Me to YouTube

Join her FaceBook Group Take me to Facebook

 

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