Monday, August 15, 2016

Financial Tips for Craft Brewers

The following is a sponsored post - paid for by Grey CPAs of Windsor, CO.
Financial Tips for Craft Brewers

As an accountant who drinks a lot of delicious beer and visits many different craft breweries, I have the distinct pleasure to engage in many conversations with brewery owners about how they have built their business. Many say that they endured a few failures before getting their business plan dialed in, and very few say that they connected on their first swing.

We’ve heard so many of these stories that we decided to create a business tailored around helping craft brewers make sure their finances and accounting practices are in a solid state before they buy their first batch of hops or their first barrel.

My name is Forrest Rose, owner of Grey CPAs. We are a Windsor, Colorado Accounting Firm that helps craft brewers get setup with the proper systems in place to succeed in the thriving craft brewery market. We provide free consultations for business owners, or those who are looking to get into business brewing and selling beer. Some of our services include tax entity formation, business startup and sustainability, bookkeeping, tax planning, financial planning, and more.

We would love to help you get started the right way when it comes to your business. To contact us, call 970-818- 3055, or visit our website at

In the meantime, here are some tips to get your business started down the proper path:

1. Make sure to take time every single week to immerse yourself in the operational side of the business. Knowing where your operational costs are going is a huge reason why craft breweries succeed or fail. What are your operational costs? Broken down, they are your materials, cost for rent, utilities, salary for labor, canning or bottling costs, etc. Before you start your budding beer business, sit down with an operations director of a successful craft brewery, and pick their brain!

2. How much start up cash do you need? This is the number one thing that is heavily underestimated by brewers. To calculate this, you must know how big you plan to go? How many barrels do you want to start with? Do you want to move directly into a facility, and if so, how much construction needs to be done on that particular building? Remember to have at least 3-6 months cash on hand prior to opening to hedge for money potentially not coming in right away.

3. Create a solid, forward thinking business plan. We recommend sitting down with a financial planner at Grey CPAs, or current craft brewery owner to discuss what should go into your plan of attack. Besides being underfunded, this is the number one culprit of breweries not achieving success quickly.

4. If you’re not comfortable with record keeping, and you just want to get your hands dirty with the brewing process, hire someone to run the operational side of things. Some brewers don’t know how to or care to learn how to use a spreadsheet, microbrewery software (of which there are many different types to choose from), or figure out QuickBooks. If that’s the case, you can hire an accountant to help you sort out the paper mess.

To stay in the craft brewing business in the first place, you must have people that like and drink your beer. If you have gotten that far, don’t fall victim to what can potentially sabotage your brewery!

Grey CPAs

Photos for this article were provided by Grey CPAs.

This sponsored article was originally posted on - a Colorado beer blog. Don't miss another article. Subscribe to Fermentedly Challenged by RSS today.