Page 9 - Beverage Master_JuneJuly 2021

Finance

your brewing schedule and worse for your income
statement.

If you take nothing else away from this article,
please remember this: count your inventory regu-
larly, match it up to the records in your inventory
system, and analyze any variances. I’ve been burned
so many times on this issue, it would be a personal
favor if you would do this. I thank you, and your
income statement thanks you.

In previous articles, I’ve written about the basics of
a good count process. Your inventory has feet and
can disappear. Few things will hurt your products
cost more than poor inventory count practices. Use
this template to get ideas for your count process.

Wrap Up & Action Items

Profitability depends on understanding your prod-
uct costs. Understand your costs so that you can
gain control over them. If you can control your
costs, you can control your profit, and perhaps your
destiny.

Review the ABCs of product costing and try out the
ideas in your brewery:

• Know your costs
• Learn the Building Blocks: Direct Material, Direct
Labor, Overhead
• Implement a Simple Product Costing system

You’ve got great beer, now it’s time to work on
great profits. After all, if you aren’t profitable, you
won’t be making beer much longer. The world
needs your beer, and you need to be profitable.
Learn the ABC’s so we can all enjoy your beer for
years to come.

For more information please visit...

https://craftbreweryfinance.com/
inventory-count-process-scorecard/

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