Operating a winery is a challenging job. It requires an in-depth knowledge of many aspects of growing produce. You need to understand your plants, keep your soil healthy, watch for signs of infection or pests, and know when your plants are ready to harvest. Then you need to harvest your grapes and go through the entire winemaking process. Once the wine is bottled, aged, and ready to sell, you then need to take on the marketing of your product.
As the owner, it is your job to keep track of all aspects of this business. You need to know your details readily, including expenditures and income. Not having accurate finances can cut into your bottom line. It can even cost you money instead of making a profit. Some business owners struggle with this aspect of their winery as they do not properly keep up with the numbers of the business. That is when outsourcing to a winery bookkeeper may be the best option to prevent your winery from taking a loss.
By outsourcing your winery’s bookkeeping to a bookkeeper who understands the wine industry, you can reduce your operating costs. There are several benefits to using an expert bookkeeper that make it worth the cost. By knowing your strengths and weaknesses when it comes to running your business, you know where to reach out to experts. This is one of the easiest places to seek help.
What Does a Winery Bookkeeper Do?
A winery bookkeeper can assist you with virtually any task related to managing your finances. They will oversee your accounts payable and accounts receivable. Plus, they work with clients to ensure that invoices are paid in a timely manner and communicate with vendors to make payments. They will also reconcile your monthly bank statements with your internal financial documents and coordinate with the bank if there are any issues.
Tax preparation is another task that a winery bookkeeper can assist with. Your bookkeeper can work closely with your accountant on your annual tax returns. They can gather much of the information your CPA needs, reducing the amount of work your accountant must do. This, in turn, can reduce the cost of your professional accounting services.
Depending on your organization, a winery bookkeeper may even take on tasks related to inventory or order tracking. Some even manage all aspects of the winery’s inventory. Your bookkeeper will also be a sounding board for financial decisions you need to make. They can provide expert advice on potential projects or expansions.
Where a traditional bookkeeper would have to take time to look up regulations or requirements, a winery accountant knows these things from experience. What that means is you pay for fewer hours hiring a winery accountant, but get more accurate and detailed financials as a result.
How a Winery Bookkeeper Can Save You Money
Using a bookkeeper instead of handling your finances yourself will reduce your operating costs in several ways. To fully understand where these savings come from, you must look beyond the cost of using a bookkeeping service. Here are some of the ways you can reduce your overall costs of using a winery bookkeeping service.
Focus Your Efforts Where They Are Needed
As the owner of the winery, you likely handle many different aspects of running the business. This often includes many or all your financial tasks. If you had an expert to handle that work, you would be able to refocus your efforts on tasks that only you can do. By giving you back some time, you can focus on earning more income for your winery in that time. Bookkeeping is not something that requires your personal attention, but making major business decisions is.
You can also leave all the bill paying to your bookkeeper. It is often their responsibility to ensure that your bills get paid, accounts are billed, and payments are received on time. They then track these expenses and income, providing you with more accurate budgets and insight as to how financially healthy your winery is at all times.
Prevent Costly Mistakes
Bookkeeping mistakes, even those that may seem minor, can have a large impact on your business. These mistakes can result in lost income, missed opportunities to save money, or even fines. A professional bookkeeper can catch many of these mistakes and correct them before it is too late.
Your bookkeeper can prevent other mistakes as well. They will ensure that your bills and incoming invoices are paid promptly, which helps you avoid late fees and keeping your professional relationships intact. They will also carefully watch your budget, so you do not over-spend. A good bookkeeper will also make certain that all clients are invoiced correctly and keep on top of unpaid invoices.
Finally, by hiring a bookkeeper, you may be able to reduce some of your overhead operating costs. These include costs such as:
- Office supplies
- Office furniture
- Technology-related costs
- Other expenses that are necessary to operate a business regardless of what industry that business is in.
According to Intuit, overhead costs should ideally make up less than 35% of your total costs. Bookkeepers typically have an understanding of what a reasonable cost is for these products and services. They may be able to identify areas where you are overspending and move you to a different vendor or renegotiate your contract. This is one area you may not have ever found the time to focus on, but a dedicated bookkeeper can.
Turn to Protea Financial to Get Help with Cutting Your Winery’s Expenses
Interested in learning more about how a winery bookkeeper can help you reduce your operating costs? Contact us here at Protea Financial today with your questions. We will gladly explain to you how we can help cut your costs and give you back time to focus on what you do best.