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Wine Accounting 101: Understanding the Basics

Wine Accounting 101: Understanding the Basics

Wine accounting is an essential part of the wine industry, but it can often be daunting and confusing, especially for those new to the business. Protea Financial offers wine accounting services tailored to meet your needs and help you understand the basics.

Our goal is to help break down the complexities of wine accounting into simple terms so you can make better-informed decisions. We want to share the basics of wine accounting, what it entails, and why it’s important in today’s competitive market. Read on to develop a strong understanding of wine accounting and take advantage of our expert advice.


What is Wine Accounting?

Wine accounting is the process of tracking and managing the financial information associated with a business within the wine industry. This includes vineyards, wineries, retailers, and distributors. Wine accounting can be a complex and challenging task due to the unique nature of the wine industry. However, it is essential for businesses in this sector to maintain accurate financial records to make sound business decisions.

Protea Financial is here to help you navigate the world of wine accounting. We have a team of experts who are familiar with the ins and outs of this industry. We can provide the tools and resources you need to manage your finances effectively. Our team can confidently answer your questions and guide you through the process easily, and we are here to help wherever we can.


Accounting Basics Every Business Needs to Remember

You don’t need to be an accountant to understand your business’s accounting basics. Whether you’re just starting or have been in business for years, keeping track of your finances and making sure your books are in order is essential. Here are a few accounting basics every business needs to remember:

  • Income: This is money that your business brings in, also known as revenue. Money can come in from sales, services, interest, investments, and more. It’s important to keep track of all income, so you know how much money your business is making.
  • Expenses: This is money that your business spends, also known as overhead. Expenses include rent, utilities, inventory, supplies, advertising, and payroll. Keeping track of expenses helps you see where your money is going and where you can cut costs.
  • Profit: This is the difference between your income and expenses. If your income is greater than your expenses, you have a profit. If your expenses are greater than your income, you have a loss. Your profit (or loss) determines whether or not your business is successful.

By tracking your income and expenses and knowing your profit (or loss), you’ll have a better handle on the financial health of your business. Since the wine industry can be fickle, it is essential to make sure you track everything carefully. Prices can change for each item, season, and even each batch of wine.

Protea Financial accounting for wineries

The Different Types of Wine Accounting

There are three types of wine accounting: cellar accounting, production accounting, and tax accounting.

  • Cellar Accounting: This type of accounting tracks the inventory in a wine cellar. This is important for individual wine collectors and commercial businesses selling wine. Cellar accounting can help track how much wine is being consumed, how much wine is being bought or sold, and the value of the wine cellar’s contents.
  • Production Accounting: This type of accounting tracks the costs associated with producing wine. This includes things like the cost of grapes, barrels, and labor. Production accounting can help wineries keep track of their expenses and make sure they are making a profit on each batch of wine they produce.
  • Tax Accounting: This type of accounting deals with the taxes associated with selling wine. This includes excise taxes, import/export taxes, and sales taxes. Tax accounting can be complex, but businesses must understand the taxes they will need to pay on their wines.

Knowing which category or categories you fall into will help ensure that you track the correct numbers. That way, you can price your products correctly and avoid having a loss for your business.


The Basics of Wine Accounting

Wine accounting is a complex and ever-changing process. Protea Financial is here to help you understand the basics of wine accounting so that you can make informed decisions about your business.

The first step in wine accounting is understanding the different types of wines. There are four main types of wines: red, white, sparkling, and fortified. Each type of wine has unique characteristics that must be considered when creating financial statements.

The second step in wine accounting is understanding the cost of goods sold (COGS). COGS includes the cost of the grapes, the cost of production, and the cost of packaging and shipping. All these costs must be considered when calculating your final price per bottle.

The third step in wine accounting is understanding inventory valuation. Inventory valuation is used to determine the value of your stock at any given time, which is important for making informed decisions about buying and selling inventory.

Protea Financial has a team of experienced professionals who can help you navigate the complexities of wine accounting. We will work with you to create accurate financial statements and provide guidance on making sound business decisions.


Common Mistakes Wine Businesses Make in Their Accounting and How to Avoid Them

There are several common mistakes businesses make regarding their accounting and bookkeeping. Here are some of the most common mistakes and how you can avoid them:

  1. Not knowing your numbers. This is perhaps the most serious mistake you can make. You need to know your numbers to make informed decisions about your business. Keep tabs on your income and expenses, and ensure you understand where your money is coming from and going.
  2. Not keeping accurate records. This ties in closely with needing to know your numbers. If you don’t have accurate records, it won’t be easy to get a precise picture of your financial situation. Make sure you keep track of all income and expenses, no matter how small.
  3. Not staying up-to-date with changes in tax laws. Tax laws change regularly, so it’s important to stay on top of any changes that could impact your business. This includes keeping track of deductions and credits available to you.

Protea Financial wine accounting basics

Protea Financial’s Wine Accounting Services

Protea Financial is a leading provider of wine accounting services, and we can help you with all aspects of your wine business, from grape to glass. We understand the unique challenges that wineries face and have the experience and knowledge to help you overcome them. We offer a full range of financial services, including:

  • Financial statement preparation
  • Tax planning and compliance
  • Grape-to-glass inventory management
  • Cost analysis and margin optimization
  • Cash flow management
  • Winery financial modeling and forecasting
  • Business valuations
  • Exit planning


Turn to Protea Financial for Help with Your Wine Accounting Needs

If you are in the wine industry and have questions about accounting or bookkeeping, Protea Financial is here to help. We understand the unique needs of the wine industry and can provide expert guidance on all financial matters. Whether you need assistance setting up your books or preparing for tax season, we can help you navigate the complexities of the wine business. Contact Protea Financial today to learn more about our services and how we can help you run your business more efficiently.

Protea Financial Is Here to Help with Your Wine Accounting and Bookkeeping

Reach out to Protea Financial if you need help with your wine accounting or bookkeeping, or even if you aren’t sure what the next step for your business should be. Our experienced professionals are here to help. 

How To Create A Budget

How To Create A Budget

We are entering the new year, which means many people are setting goals for the new year. As a business owner, you should be doing the same thing. Creating a budget is one of the best practices you can start for your business.


What Is a Business Budget and What Are Its Benefits?

A business operating budget is a financial plan that outlines a business’s projected expenses and revenues over a specific period, usually a year. A budget is a key tool for business owners and managers to understand the financial performance of their business, make informed decisions, and plan for the future.

A well-thought-out and designed budget will allow you to make better business decisions and feel more in control of your future. If you are still not sure you need a budget, here are some of the key benefits of having a budget:

  1. Improved financial planning: A budget allows you to plan for the financial needs of your business, including projected expenses and revenues, if you need to hire, if you need to invest in new assets, and, more importantly, if you have the cash flow for your business goal. By creating a budget, you can identify potential financial challenges and opportunities and take steps to address them.
  2. Enhanced decision-making: A budget can help you make informed decisions about allocating resources and making trade-offs between different priorities. The budgeting process should inform you what you are limited to doing by your current business setup and if you need to take action if you want to expand or grow.
  3. Increased accountability: A budget can help you hold yourself and your team accountable for meeting financial goals and targets. By regularly reviewing your budget and comparing it to actual performance, you can identify areas where you are over or under budget and take corrective action. It will also provide the road map on how your team can spend and give them direction to execute their goals.
  4. Improved communication: A budget can help you communicate your financial goals and plans to your team and stakeholders, such as investors or lenders. This can help ensure that everyone is aligned and working towards the same financial objectives. It can act as an early warning system for potential issues and provide guidance on financial needs if you are planning for growth or expansion.

Now that we have established that a budget is important and a worthwhile exercise, the question is, how do I create a budget?

Protea Financial Creating a Budget for Your Business

Budget Creation Basics

Here are the basics of building a business budget:

  1. Determine your budget period: For most, this will be the next calendar year but the first step is to choose a budget period that aligns with your business goals and objectives. For example, if you are starting a new business, create a budget for the first six months, the first year, the remainder of this calendar year, and the next. Setting the budget period allows you to think about a period and focus on those goals and expectations.
  2. Identify your budget categories: You will need to determine the categories of expenses and revenues relevant to your business. Common types of expenses include payroll, rent, utilities, marketing, and supplies. For income, the categories include sales of products, service fees, and grants. There may be subcategories under each of the main categories. By know which revenue and expenses you plan on budgeting for allows you to become more granular and focused in your approach to building this plan.
  3. Gather financial data: Collect financial data from past periods or other sources, such as market research or industry benchmarks, to help you estimate the amounts for each budget category. For most businesses, starting with historicals is a great place to begin. Your history will give you an idea of your future and allow you to adjust based on the information you have or the new projects you plan to implement.
  4. Create a budget template: Use a spreadsheet or budgeting software to create a budget template that includes all the budget categories and subcategories relevant to your business. You can either build your own, hire someone to build a template, or download one from a reliable source.
  5. Estimate expenses and revenues: Using the financial data you have gathered, estimate the amounts for each budget category for the budget period. This is the work part. Once you know what you plan to budget for, you can do the hard work. Most good budgets will take into account information from your team. Gathering insight and information from the people who are meant to execute the goal will allow you to gain buy-in. Also, most good budgets will take a few rounds. This is a necessary process and not one that should be rushed. Once all information is gathered, it should be reviewed with all stakeholders and adjusted as necessary. Obtaining insight from others will help get everyone’s approval that it is achievable and ensure everyone is working towards the goal of execution. 
  6. Monitor and update the budget: Budgets are a tool that should be used to drive the business towards its goals. It is important to regularly review and see how you are performing towards these goals. The review should provide insight into where you need to improve and where you are doing well. It is also necessary to update the budget as required. Your business environment might change, and different opportunities and pitfalls may arise. It is critical that the budget stays accurate and reflects these changes in your business’s financial position or goals.

With these steps, you can create a comprehensive and accurate business operating budget that will help you understand and manage the financial performance of your business. A well-executed budget will provide you and your business insight to move toward your goals.

Protea Financial Business Budget

Protea Financial Can Help You Create a Budget for Your Business

Now, remember, the budgeting process takes work. Sometimes you will need to get help. If you do not have the capabilities internally or want additional insight into the process, consider outsourcing your needs. Reaching out to an outsourced option like the professionals here at Protea Financial might be a great way to get the best out of your budgeting process by bringing in experts. Contact us today and we can help!

Let Protea Financial Help You Create a Budget for Your Business

If you want help learning how to create a budget for your business, or you need someone to do it for you, contact the professionals here at Protea Financial. 

2022 Year in Review

2022 Year in Review

It’s been another exciting year, and so much has happened since we did our last year in review that we’d take a few moments and look back at everything. Each year brings about new opportunities, but this year saw a few things we were pleasantly surprised to see. Read on to see what the Protea Financial family has been up to and a few insights into what we plan next year!

Finding Our New Normal

As 2022 progressed, it brought with it the hope of returning to some sense of normalcy after the challenges of the previous years. The pandemic has disrupted many aspects of our daily lives, causing widespread chaos and economic hardships. But as the year progressed, we were able to find a new normal.

We were able to slowly and cautiously return to some of the things that the pandemic had taken away from us, such as gathering with friends and family, participating in face-to-face meetings with each other and our clients, and supporting local businesses.

It was a reminder of the resilience of the human spirit and the power of coming together in the face of adversity. While there are still challenges ahead, the progress made in 2022 gives us hope for a brighter future.

The Growth of Protea Financial

It has been gratifying to see Protea Financial continue to grow and thrive throughout 2022. The future looks equally as rewarding to us. One of the year’s highlights has been the addition of new faces to the Protea family. These talented and dedicated individuals have brought fresh perspectives and ideas to the company, helping us to continue to evolve and meet the needs of our clients.

It has also been a pleasure to welcome new clients to the Protea Financial family. It is always gratifying to be able to serve and support those in need of financial guidance and assistance. Each new client is an opportunity to positively impact and help them achieve their goals.

We are grateful for the continued support of our clients, both old and new, and for our team’s hard work and dedication. We are excited to see what the future holds for Protea Financial and look forward to serving our clients for many years to come.

The Success of Protea Conversations

Protea Conversations has been an incredible success over the past two years, offering a platform for nearly two dozen industry leaders to share their insights, experiences, and advice with our audience. The response to these conversations has been overwhelmingly positive, with many individuals finding value in candid and informative discussions.

One thing that has made Protea Conversations so successful is the diverse range of industries and perspectives represented by our guests. From entrepreneurs and executives to thought leaders and innovators, we have had the privilege of speaking with some truly remarkable individuals.

In 2023, we are excited to announce a new twist to Protea Conversations. While we can’t reveal too much, this new direction will bring more depth and interaction to our conversations. We are confident that it will be a valuable and enjoyable experience for all who participate.

We are grateful for the continued support of Protea Conversations and look forward to continuing to bring valuable and engaging content to our audience in the coming year.

Protea Financial Community Outreach

Community Outreach Continues to Be a Focus Each Year

At Protea Financial, it is vital to give back to the communities in which we operate. That is why community outreach has always been a significant focus for us. It will remain so in 2023 and beyond.

Over the past year, we have been fortunate to partner with several excellent organizations that make a positive difference in the lives of people in need. In the United States, we have worked with Marin Foster Care, Positive Images, and the Redwood Empire Food Bank, among others. In South Africa, we have supported organizations such as Save-a-Pet, Love Story, and MTR Children’s Home, including donating Christmas gifts.

These partnerships have been incredibly rewarding for us, as we have been able to make a tangible impact on the lives of others and contribute to the well-being of our communities. We are deeply committed to continuing this work in the coming year and beyond. We look forward to partnering with even more organizations that share our values and mission.

Reach Out to Protea Financial If We Can Be of Any Help

If you or your business needs help with its financials or you want to network with Protea Financial in some way, please contact us. We would love to hear from you and see if our businesses can make 2023 even better!

Join Protea Financial and Become Part of Our Growing Family

Become a part of the ever-growing Protea Financial family. We welcome all with open arms. Let us work together and help out where we can!

Words of Wisdom from Protea Financial

Words of Wisdom from Protea Financial

There is something to be said for the words we all speak. Day in and day out, we speak and hear thousands, sometimes millions of them. The words we choose say a lot about who we are and what we are passionate about. Here at Protea Financial, we love to share words of wisdom all throughout the year. During 2022, we’ve had many moments where our words have allowed others to learn, so we are going to share them once more. Here are some of the important words we have offered followers this year, and hopefully, you can take something away from these meaningful lessons, too.


Understanding Reconciliation

We get asked a lot of questions about reconciliation, so we have offered a few different social media posts talking about different points of financial reconciliation. Here are some of the ones that people tend to love the most.


More Than Just Bank Recon:

Reconciliation is more than a bank recon.

Yes, a bank recon is very important.

But you should be reconciling every account on your balance sheet. You should have an external or 3rd party back up for each and every balance.

An accurate balance sheet is half the battle towards good quality financial statements.

Protea Financial Bank Reconciliation

Take Action:

A bank reconciliation is one of the most basic of month end close procedures.

It is also one of the questions I will ask in a hiring interview to judge accounting ability.

It is an important concept to understand.

But, there is a part of the process that a lot of people forget. In order for a bank reconciliation to be truly completed, you need to do something with the differences.

Ignoring them can lead to problems in the future.

So here is a helpful process:

  • Complete the bank reconciliation like normal
  • Isolate the list of differences
  • Document which differences are truly timing versus differences that are “permanent” and need to be corrected
  • Take action

Even with the timing differences be sure to review length of time as timing differences can become permanent.

Complete you bank reconciliation by taking action!


Zero is the Answer:


Yes. 0.

Reconciliations are only complete if your final answer is 0.

Either no differences or you can show what the differences are.


A recon is not done until you reach 0.


Insight About Transactional Accounting

Another topic we get asked about regularly is transactional accounting. Every transaction of your business matters, and if you do not have someone accurately tracking and documenting those transactions, what numbers are you basing your decisions off of? These essential numbers can make or break your business, so we ask that everyone make sure to take them seriously.

Do not underestimate the value of really good transactional accounting.

People are quick to jump on the I need a FP&A person? Or I need a controller? Or I need a CFO? bandwagon.

Yes. There is a good possibility you need these people. But remember these people cannot do their job if they are always questioning the source data.

Do not overlook the importance of a really, really good bookkeeper. This is such an undervalued role in the accounting cycle and honestly it might be the most important. Without this person doing their job accurately and consistently, all the other people are likely to stumble and in extreme cases fail.

Do not overlook your transactional accounting and the value of a really good bookkeeper. The quality of your bookkeeping could make a significant difference to your success.


The Power of the Accounting Equation

An unfortunate truth in this business is that people often forget the simple equations that can help keep numbers straight in their day-to-day tasks. The accounting equation is one of those equations we get asked about. It is one of the most essential pieces of knowledge any accountant, bookkeeper, and business owner should know when it comes to keeping their financials in order. Write it down and keep it handy – it could help you in ways you may not even know yet.

I have shared this before. But I love this image.

The accounting equation is the most important piece of information any accountant can learn.

The simple formula of A=L+O is all you need to handle the basics (and most of the not so basics)

Yes, there are a lot of overly complicated standards written by people in ivory towers. And yes, these do add extreme complexity. But at the core, if you know this equation, apply this equation, and live by this equation, you are bound to succeed.

The accounting equation is simply the most important accounting basic you will ever learn.

Protea Financial Accounting Equation Picture

You Are Vital to the Success of Businesses Around the World

One of the more forgettable positions in any company is that of the bookkeeper or accountant. We have stress from the expectations everyone has, and many want us to be super-human and infallible. Our goal here at Protea Financial is to be a supportive resource to all, including businesses and financial professionals alike. Here are some important words of wisdom we’ve been able to share this year that really resonated with our audience, and we hope you feel the power of these words, too.


Being an Accountant is Tough:

Being an accountant is one of the toughest jobs out there because we are underappreciated and most of the time seen as a grudge purchase. A lot of people will treat you poorly in a business environment purely because you are an accountant.

On top of that, expectations around us are crazy! You can get 1000s of transactions correct without any thanks. It is just expected. But get 1 wrong, and it is the end of the world.

So, I want to remind you all.

You are doing a great job! And your work is important! Keep working hard and doing the best you can! You are making a difference!

Protea Financial Bookkeepers Are Important

Bookkeepers Are Important:

Sometime people with a title will treat you poorly.

Screw them!

Bookkeepers are important!


Do not let anyone tell you otherwise!

Poor source information will lead to poor decisions.


Contact Protea Financial Today for Advice, Questions, or Networking!

Here at Protea Financial, we love sharing ideas and resources with those who want to learn more. It is part of the inspiration behind what we do. If you ever need to ask a question, are looking for a professional to add to your network, or need some words of wisdom, please contact us. We will always do what we can to help share ideas, thoughts, and knowledge with those who want it.

Add to Our Words of Wisdom As Part of Our Network

If you have ideas and words of wisdom you want to share with our network, join us on social media, or contact us to become a part of the Protea Financial network!

2022 Thankful Message from Protea Financial

2022 Thankful Message from Protea Financial

Another year is nearly over, and what an eventful year it has been. We have all been through a lot of ups and down over the last few years, and 2022 was no different. Thankfully, some aspects of life are starting to feel a bit more normal, and we were able to make some progress with goals we set for ourselves and our clients.

As the Director and Founder of Protea Financial, I’d like to take a few moments and reflect on some of the amazing things that happened this year. Plus, I’d like to thank some of the people who were there to help make these things happen.


Our Clients Are Amazing

Each client that has ever put their faith in the team here at Protea Financial – thank you. We are grateful that you trust us and that you share with others the experiences you’ve had with us. It is thanks to you that we continue to grow, adding new clients to the diverse group of people we’ve had the privilege to work with in the past. From our humble beginnings to where we are today, we have the same mission and goals, but have cast a wider net to do our best to help more people as time goes on.


Protea Financial is Growing by Leaps and Bounds

Over the course of 2022, Protea Financial has been able to help more people than ever before. The company, as a whole, has grown to include more financial professionals and more clients than ever. Our goal from the beginning with Protea Financial was to help as many people as possible. This goal was front and center with our message, the people we hired, the clients we chose, and the resources we created. Today, those goals and choices are the backbone of our business that is reaching further and embracing new opportunities at ever turn.

I always hoped that Protea would become a company that community members would know they could rely on, and that is taking place. I am grateful for everyone that works with me at Protea Financial, and want them all to know I see how hard they’re working and appreciate that effort each day.


Protea Financial is Thankful for Growth


The Team Shares My Determination to Help

I cannot say enough about the team here at Protea. They embody the goals we set in the beginning, and they are as determined as I am to help as many people as possible. We are always trying to come up with new ideas, resources, and methods of helping the people we work with. Plus, we bounce ideas off each other on ways to reach even more people. I am grateful to every part of the team, from our newest member to people who have been at Protea Financial for years – thank you so much.


Some Semblance of Normalcy

While the world may never return to what we all felt was normal prior to COVID-19, there are some good changes that we have been lucky enough to make along the way. Many of us are now closer than ever to our loved ones, which many of us took for granted in years past. However, at some points during the remote lifestyle we all became accustomed to, the closeness of working relationships suffered.

Today, we are able to have a new form of normal that allows those personal relationships with co-workers face-to-face again. I was able to spend time with my team in-person, and we are all grateful to be able to come together, brainstorm ideas, and work as a team to help solve problems like we used to. While it may never be the same, this new normal is quite possibly an improved version of life as we once knew it, and for that, I am grateful.


Protea Financial is Thankful for Travel


Travel is Once Again an Option

The last time I was able to go and visit friends and family in South Africa was in 2019. However, with restrictions changing on travel, I was able to go back and visit with people I’ve missed terribly. We were able to spend time together, talk about what happened in our lives since we last saw each other, and get caught up.

I am grateful for the time I was able to spend there with people who mean the world to me, and also for the fact that we were able to pick up almost exactly where we left off in 2019, as if no time had passed. It is a true testament to how deep relationships can go when they can continue like that. It was an amazing trip, and I look forward to my next opportunity to visit.


My Family is At the Heart of All I Do

Outside of the office, I also want to take a moment and show my gratitude to my family. From my parents to my wife and kids, you all support me and the goals I have for this company. I know I work long hours trying to follow my dreams and reach my goals. You are each with me in everything I do, and I am grateful that you are so understanding.

My parents have been there to show me the importance of following my dreams. They taught me that no matter where those dreams take me, I can follow them with confidence. My kids see my determination and day in and day out, I hope that I am instilling the right values in them while setting a positive example. I am grateful for the love and fun you bring to my life.

As for my wife, you truly are my best friend. Your support, understanding, and love are my constant guide. I could not help the people I do without knowing you are by my side with each decision I make. Thank you all.


For Every Member of the Protea Financial Family – Thank You

Protea Financial started out as a hope and a dream to help people. Today, it is a company I am proud to lead. Please contact us here at Protea Financial today if we can help your business, or if you want to become part of the Protea family, too.

Become Part of the Protea Financial Family

Reach out to Protea Financial today if you want to be part of the Protea family, too!