Closing 2017 Financials with Confidence
It’s that time of year again. That special time when reality sets in and the numbers must be looked at. Just thinking about it can make even the toughest among us break out in a cold sweat. Again, forced to ponder how you’ll piece together your previous year’s financials. Yet if you’re already running your craft beverage operation using the Orchestrated platform, we’ve got you covered.
For those looking for a few quick tips on how to handle the ins and outs when closing out 2017, you’re in the right place. And maybe you’re not a current Orchestrated subscriber, that’s alright too. Just know that we’re definitely not accountants and wouldn’t feel comfortable providing that kind of advice, but we can certainly point you in the right direction about how Orchestrated can make accounting for your brewery, cidery, distillery, or any other craft production facility easier than ever.
Completing Year-End Closing
The first and most important function you’ll want to address within Orchestrated when January or February rolls around is to simply close the year out. This generally entails rolling all your Profit & Loss account balances into a dedicated Retained Earnings account. It’s a snap to do this in Orchestrated being that there’s a Period End Closing Utility dedicated to doing just that. This entails locking and unlocking the correct Posting Periods for processing, as well as making sure you create new Posting Periods for 2018.
If you want to dive deeper into that process, learning everything step-by-step, check out our webinar covering Year-End Close. We also have a logistics focused Period End Close webinar that includes additional Year-End Closing links when it comes to working with TTB BRO/DRO, Inventory Audits, Checklists, and more.
Using Orchestrated to Organize Your Finances
It goes without saying that there are many ways to organize your operations as a craft beverage company. So the real question then becomes, how do you sync your operations in order to make disparate systems functional when working across various platforms? Do you use financial software that needs to be imported to your production software? Or maybe you’re exporting everything to excel and have to piece everything together externally?
Either way, it sounds like extra time and energy spent on something less than ideal. Not to mention the headaches, getting explanations from different departments, and asking co-workers about batches created months ago. The list of pitfalls and nightmare scenarios that can result might just stretch as far as the eye can see…
A Single Source of the Truth
What sets Orchestrated’s interface apart from others is its ability to provide your ownership and accountants a single source of the truth. Whether you’re brewing a beer, creating cider or mead, or distilling alcohol, the financial accounting is built-in to follow every step of production. You’ll be accounting for variances in batches, get greater visibility via Work In Progress (WIP) accounting, knowing your Cost of Goods Sold (COGS), accounting for long-term assets, or even managing hop and malt contracts. All of this is built into Orchestrated and accounted in real-time.
Yet it all pays off when calculating your end-of-year financials. Sure, Orchestrated will keep everything organized and provide reports for every aspect of your operation. But more importantly, with all this built-in transparency and attention to detail, you’ll spend less time haggling over what the real numbers are, resulting in an increased Retained Earnings account at year’s end. Simply more reasons why Orchestrated is the industry’s best option to efficiently “Conduct You Craft” and know where your money is going when it’s time to wrap up your financial year.
* Orchestrated does not provide financial advice, nor acts as accountants for our customers. If you have specific questions about your company’s financial matters, please seek the counsel of a professional accounting firm.