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Craft Brewery

Below is a brief review of each report.

Income statement (Profit & Loss Statement or
P&L): The brewery income statement reports on
sales, margins, operating expenses and shows
whether the business had a profit or loss. This state-
ment measures results over a period of time – the
month, the quarter, or year to date, for example.

It’s important to understand that the income state-
ment measures transactions but does not measure
cash flow. The income statement records sales
when earned, and expenses when incurred, regard-
less of whether cash was received or paid out.

Balance sheet: The brewery balance sheet lists
assets, liabilities and equity. Assets are things you
own, liabilities are things you owe, and equity is the
difference between the two. If assets are larger
than liabilities, you have equity. If liabilities are big-
ger, you have a deficit.

While the income statement measures results over
a period of time, the balance sheet measures num-
bers as of a specific point in time – at month end,
quarter end or year end, for example.

Statement of cash flows: This financial report mea-
sures the flow of cash coming into and going out of
the brewery business. It tells you where cash came
from (collections on sales, for example) and where
cash went (payments to vendors, for example). The
income statement measures transactions, not cash.
The statement of cash flows shows picks up where
the income statement leaves off and records the
flow of money through the business.

Brewery Income Statement (P&L) Examples

Now that we’ve covered the basic financial reports,
let’s look at examples of what brewery income
statements should look like.

We’ll begin with a summarized version of the P&L.
Shorter reports are easier to read and allow you to
see important information quickly. The summary

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