Page 26 - Beverage MasterAug Sept 2020_Rev

Craft Brewery

Brewery Financial Statements 101:

How to use Financial Reports to Improve Results

By: Kary Shumway, CPA, CFO, Numbers Guy

F inancial literacy is the ability to read and also dig into the mysteries of the brewery chart of

understand the numbers of your brewery
accounts – the building blocks of the financials –
business so that you can improve finan- and provide tips to make sure your financial report-
cial results. Improving financial results may include ing is as good as it can be.
growing sales, improving gross margins or increas-
ing cash flow. In today’s uncertain times, financial We’ll close out with a list of best practices to fol-
literacy is more important than ever. low so that your financial information is accurately
reported. These best practices are summarized into
The numbers of your brewery business are a handy checklist of month end procedures to fol-
reported on the financial statements – the income low.
statement, balance sheet and statement of cash
flows. Each of these reports provides vital financial Brewery Financial Reports
information to understand what’s going on in your
business. The numbers of your business are organized into
reports called the financial statements: the income
In this article, we’ll review the basic components statement, balance sheet and statement of cash
of brewery financial statements and provide exam- flows. Each statement provides useful information
ples of what these reports should look like. We’ll about a different part of your brewery business.

24 August - September 2020 BEVERAGE MASTER

BM080920 Main Pages .indd 24 7/17/20 2:30 PM