With all of the changes that are occurring for small business during these unprecedented times, it’s important to reflect on how you can improvise your business while adapting to and overcome the challenges posed by the COVID-19 outbreak and the disruption it has caused. Improvise Your Business (Internal factors to consider) Cash Flow Cash flow
Late on March 25th, 2020, the US Senate passed a bill to aid businesses and individuals who are all struggling with the economic and health effects of the COVID19 pandemic. The bill still needs to pass the house where some changes are likely to be made and will then be sent to the President for
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Hiring an accountant for a high growth business like a brewery is not as easy as just going to your local CPA and asking for help. Your local CPA probably only does tax returns and won’t provide the ongoing support a growing brewery needs. It’s not going to a big firm, either. A bigger firm
What does it mean to be profitable as a craft brewery or food crafter? Your tax return will probably tell you that profit is your cash receipts from sales less cash expenses, whether those cash flows cover months in the past or future (ie real estate taxes or insurance). Some people will tell you that this is an OK way to view your business.
But it isn’t. Your tax return is meant to tell you your tax liability. And simply accounting for profit from cash inflows and cash outflows is only meant to tell you cash flow from operations.
But there’s another way…
All the costs and expenses in a brewery or food craft business have value. These expenses and costs ultimately contribute to your revenue and without them your revenue may not be what it is now. This is why it is so important to view costs as strategic rather than things to reduce. The trap you can find yourself in when you go the route of cutting costs, rather than being strategic, is that your quality can suffer enough to run your customers away. Clearly that is bad for any brewery or food crafter.