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4 Benefits of Outsourced Accounting For Wineries

4 Benefits of Outsourced Accounting For Wineries

Accounting and bookkeeping are the heartbeat of the business side of your winery. Unfortunately, these critical functions are too often overlooked by busy owners. While it’s tempting to take shortcuts, or simply rush through the tasks, that can lead to inaccurate financial statements. That’s why Protea Financial offers outsourced accounting services.

While it’s certainly understandable – you have your plate full with so many other business tasks – errors in your accounting and bookkeeping can derail your business. And often without warning.

In 2019, it was reported that 82% of small businesses fail due to cash flow problems. And this infographic from SmallBizTrends shows that 30% of all small businesses are continually losing money due to poor financial management.

With business growth, wine sales and general management stealing your focus, you may consider outsourcing your accounting to ensure financial accuracy and promptness. Outsourcing your winery accounting can help reduce your workloads and divert some, or all of your financial tasks to qualified, highly-skilled accountants. The results will be evident. Once you have outsourced your winery’s financial tasks to an experienced accountant, you can rest assured that your business accounts are in safe hands.

Don’t believe us? Consider this: A survey in 2018 showed that over 80% of businesses outsourcing their accounting function would recommend their accountant to other businesses. If you’re not yet convinced, we’re going to tell you about all the benefits of outsourced accounting.

What Can an Outsourcing My Accounting Department Do for My Business?

Outsourced accounting can take some elements or even the entire function of accounting outside of your business. This will make room for other tasks – especially those that are particularly time-consuming. Whatever your current accounting situation, outsourced accounting can offer you a far more comprehensive solution. Here are 4 of our favorite benefits of outsourced accounting.

1.     Accounting Firms Are Made For This

Wine accounting is a complex and challenging task. Not only does outsourcing your accounting take the work off your shoulders, but it places it in the competent hands of highly trained and experienced accounting staff. That’s right, with many accounting firms, you’re no longer relying on one person to manage your books, often you’re getting a whole team.

2. You Can Cut Your Overhead

When you outsource accounting, you will only pay for the work done. In the USA, worker illness and injury cost businesses a total of $225.8 Billion. You need not be one of them. By outsourcing your winery accounting needs, you skip the hassle of payroll taxes, sick leave and vacation time. Therefore, significantly improving your winery’s profit margin. You also eliminate the risk of suddenly losing staff – an issue that most businesses face when someone goes into long term sick leave or quits without notice, leaving you and your books high and dry.

3. Trained Accountants Are Meticulous and Logical

There’s nothing quite so analytical and precise as the mind of an experienced accountant. By nature, accountants are highly logical and willing to deep dive into the details in order to produce the best outcome. Often, accountants utilize highly complex software in order to manage your accounts and to produce the most accurate results possible. One of the many benefits of outsourced accounting is of course, the accountants themselves.

4. You’ll Save Money

While paying someone to do a task you managed yourself might not seem like it would save you money, it definitely will in the long run. You are now free to take care of your business in other more effective ways, or to hone your focus into one element of finance such as bookkeeping and redirect the rest. So the fee your business pays to an outsourced accountancy firm will pale in comparison to the profits from a more active business. In fact, around 30% of businesses outsourcing their accounting functions have been able to increase profit with the guidance of their new accountant. 

How Protea Financial Will Bring You All the Benefits of Outsourcing Your Accounting or Bookkeeping

To remain successful, wineries need business leaders to run fast while remaining agile, as well as access to accurate financial data. The opportunity cost of not having superlative accounting is potentially enormous. Protea is here to empower you to cultivate business growth, while your outsourced accounting team manages your financial back office.

Our clients enjoy the benefit of having a team structured around your business needs. The strategic benefits of outsourcing accounting start with the savings. It’s the stack of talent that works with you around the clock to maintain the integrity of your company finances. No matter what happens, your Protea team will have your back and strive to make your job easier.

Begin your journey with Protea by requesting an evaluation today. Our goal is to design a winery financial strategy that allows you the freedom to scale at the pace you desire.

Accountant vs Bookkeeper

Accountant vs Bookkeeper

As wineries search for growth in today’s digital world, the accountant vs bookkeeper debate has become all the more relevant. Innovation, technology, and eCommerce have made traditional marketing strategies for wineries nearly obsolete. 

As RaboBank recently highlighted, only those wineries who respond to market changes with the needed urgency will thrive, and wine businesses that have leveraged the power of eCommerce have already seen massive returns. In this effort, the need for winery accounting and bookkeeping management has also risen.

Accountant vs Bookkeeper: Who Does What?

Before we get into which professional is right for your winery, it’s important to highlight the differences between them; each specializes in different responsibilities between financial and operational management within your winery business. 

An accountant is responsible for recording and presenting the financial well-being of a business. The most pertinent profiles for Ecommerce wineries are management accountants and tax accountants. 

Management accountants take charge of representing the financial performance of your digital business through drafting budgets, reconciling balance sheets, and analyzing financial reports stored on your eCommerce platform, among other actions. 

On the other hand, a tax accountant does tax reporting management. That includes calculating your business taxes and offering counsel on your business strategy to minimize tax audits and lessen the possibilities of tax law breaches. 

Unlike accountants, a bookkeeper records any and every financial transaction that your winery does. They are important team members, as they are responsible for identifying, recording, and labeling the purpose of every financial transaction in your winery.

Is an Accountant or a Bookkeeper Right for my Winery? 

The Ecommerce winery business model calls for both management and tax accountants. Management accountants are important as they provide you with the financial insight you need to gauge the effectiveness of your business strategy and make better financial decisions. While some winery executives feel that they can handle finances on their own, doing so will take them away from other important areas of business development, like sales and digital marketing.

Similarly, tax accountants are all the more important now than ever as winery businesses now need to enter into unchartered waters of eCommerce. Onboarding an accounting professional who has the right legal and tax knowledge in the digital field will steer you away from possible tax infringement. 

Bookkeepers take care of major responsibilities. However, practice shows that they are often too bogged down by data entry tasks that they don’t have the time to deal with possible financial issues, or provide actionable analysis and insight into the business’s key performance indicators (KPIs). While accountants can absorb the role of a bookkeeper, they tend to be overqualified and too expensive for the role. Furthermore, hiring all three professionals individually is too costly for most wineries, and the winery owner or executive is still responsible for making sure all three individuals work together seamlessly.

Luckily, the solution to this financial dilemma can be solved by getting in touch with Protea Financial.

Protea Financial: Ultimate Winery Accounting & Bookkeeping Services

Protea Financial is an accounting and bookkeeping firm that designs and implements customized accounting solutions for businesses. We are not a tax preparer, but we support businesses of all sizes in managing their finances so that they can focus on other facets of their business development. 

Our services include tax schedules, managing financial accounts, preparing accounting documentation, and bookkeeping

For wineries, we have an all-inclusive service that covers responsibilities needed for tax and financial management and bookkeeping, and our services are significantly less expensive than if a winery were to individually hire each professional. 

By housing all professionals under one team, we deliver the same services at a rate that’s below the average marketing-price while maintaining premium quality and accuracy. Furthermore, the winery’s leadership does not need to spend time training, overseeing, and making sure unrelated financial professionals are working together productively. 

Our team, led by Zane Stevens, consists of almost 25 accountants that, together, bring decades worth of accounting and financial managerial experience to our projects. We are poised to assist you in driving your winery business to success.

Get in touch with us to set up a consultation for your winery accounting and bookkeeping needs. We will conduct a thorough evaluation of your winery financial life-cycle to develop and propose a strategy that will lead you to financial freedom. 

Set up your evaluation today.