Download Your Brewery Chart of Accounts 2023
In the brewing industry, you have a million things to track: raw materials, vendors, equipment maintenance, transportation, overhead, beer sales, and more.
Now imagine that you need to find out why you spent $555.60 last February… and in which area of the business.
Are you going to hunt through a pile of receipts in your office drawer?
We hope not!
This is where your chart of accounts comes in.
In today’s blog, we’re going to go over what the chart of accounts is, why you need one (pssst.. see example above), and how to create a chart of accounts for your brewery.
Let’s dive in.
What is a chart of accounts?
Let’s talk about one of the most important tools for managing your brewery’s finances: the chart of accounts.
Think of it like a table of contents for your financial records. It’s a list of categories that organize all of your transactions, from paying suppliers to selling your latest batch of beer.
You could keep a chart of accounts in a spreadsheet on your computer, but most breweries use bookkeeping software like QuickBooks or Xero to keep things organized.
With a chart of accounts, you can easily find any piece of financial data you need, whether it’s an invoice or a utility bill.
Using a chart of accounts can be a real lifesaver when it comes to tracking expenses and generating financial reports.
Here’s an example of what it might look like:
- Taproom sales
- Wholesale sales
- Online sales
Cost of goods sold (COGS)
- Beer ingredients (hops, malt, yeast, etc.)
- Packaging materials (cans, bottles, labels, etc.)
- Direct labor costs (brewing and packaging staff wages)
- Rent and utilities
- Brewery space rent
- Electricity, gas, and water bills
- Salaries and wages
- Administrative staff wages
- Taproom staff wages
Why is a chart of accounts important?
Not having a chart of accounts is like reading a book with no chapters.
Basically, your bookkeeping software (or office drawer) will become a chaotic mess of different transactions with no rhyme or reason.
By putting your transactions into different categories, you can easily generate financial reports and analyze trends.
Plus, having a well-organized chart of accounts helps you stay compliant with accounting standards and regulations.
And trust us, you want to be compliant, especially when it comes to audits and financial reporting. So, whether you’re a big brewery or just starting out, a chart of accounts is a vital tool for keeping your finances in order.
How do you use your brewery chart of accounts?
The chart of accounts is most commonly used in your bookkeeping or accounting software, and depending on which software tool you use, the process for uploading your chart of accounts will differ.
The bookkeeping software we use and recommend is Xero.
Watch our video series on Xero vs. QuickBooks to find out why.
Here are the general instructions to follow:
- Customize your chart of accounts
- Customize your chart of accounts in an Excel CSV file (don’t worry, we’ve got you covered with a template down below.)
- Import the chart of accounts into your bookkeeping software
- Review any errors
TL;DR: Make a copy of our COA template down below, customize it for your business, and upload it to your bookkeeping software. Voila!
Download your brewery chart of accounts template 2023
While your brewery may be more complex than the average small business, the good news is that your chart of accounts doesn’t need to be.
To make it easy for you, we’ve made a template of the brewery chart of accounts that we use with our clients.
Note: your chart of accounts should be unique to your brewery, and will vary depending on how you run your business. To get help with your specific chart of accounts, you can reach out to our team anytime.
Do you need help organizing your brewery bookkeeping?
We hope you’ve enjoyed our brief overview of the brewery chart of accounts.
However, we’ve only touched the tip of the iceberg when it comes to keeping healthy books for your brewery.
If you have more questions, need confirmation, or just want someone to take bookkeeping off of your hands altogether, we’re here to help.
It’s what we’re here for!
Until next time!