Brewkowski
Well-Known Member
So my folks just finished opening a small winery and they've been in business for a bout 3 months and I've been telling them to ready up their books for closing out the year. So a few basic questions if anyone has any general knowledge in this area. No advise that is billable
1) Last year they used their local H&R Block office, is that good enough or should they really be looking at an accountant that they can meet with 3-4 times a year to reconcile and advise more. They felt the H&R lady was good but basically doing data entry and not providing any guidance
2) Should bulk juice and wine be categorized as a pre-paid expense, and if so can you journalize it per bottle sold or easier to make monthly entries
3) Normal depreciating schedule? Assuming they are somewhat like a farm for tax purposes http://www.cals.ncsu.edu/agexed/sae/deprec.htm Googled and found this site.
Newly constructed building 20 Years
Farming equipment/computers 5 years
Fermenation/bottling equip 5 years
Vines bearing fruits 10 years
Freezers/coolers 10 years
Dogs work to prevent deer from eating grapes (depreciate them?)
4) The only real expensese they would have would be the Opening Party, Bottles, corks, label printing, licenses and fees, basic small tools or equipment needed, glassware, retail invoices, trade publication subscriptions,
They've got Quickbooks, but I think they're just now really starting to make entries.
Any basic information that they should consider or major concerns for a first year business? Pretty much what I've told them so far is find a local accountant with a decent reputation.
1) Last year they used their local H&R Block office, is that good enough or should they really be looking at an accountant that they can meet with 3-4 times a year to reconcile and advise more. They felt the H&R lady was good but basically doing data entry and not providing any guidance
2) Should bulk juice and wine be categorized as a pre-paid expense, and if so can you journalize it per bottle sold or easier to make monthly entries
3) Normal depreciating schedule? Assuming they are somewhat like a farm for tax purposes http://www.cals.ncsu.edu/agexed/sae/deprec.htm Googled and found this site.
Newly constructed building 20 Years
Farming equipment/computers 5 years
Fermenation/bottling equip 5 years
Vines bearing fruits 10 years
Freezers/coolers 10 years
Dogs work to prevent deer from eating grapes (depreciate them?)
4) The only real expensese they would have would be the Opening Party, Bottles, corks, label printing, licenses and fees, basic small tools or equipment needed, glassware, retail invoices, trade publication subscriptions,
They've got Quickbooks, but I think they're just now really starting to make entries.
Any basic information that they should consider or major concerns for a first year business? Pretty much what I've told them so far is find a local accountant with a decent reputation.