North Carolina’s craft beer scene is booming, with over 400 breweries operating across the state and more opening their doors each year. From Asheville’s mountain microbreweries to coastal taprooms, the Tar Heel State’s beer scene has become both a cultural touchstone and an economic powerhouse. But while brewing is an art, running a profitable brewery requires a sharp financial strategy, and that’s where accounting comes in.
Whether you’re starting a brewery from scratch or growing an existing operation, smart financial practices can help you avoid costly surprises and remain compliant with local and federal regulations. Below are seven accounting tips to help North Carolina breweries stay financially healthy and focused on their craft.
1. Separate Personal and Business Finances
When launching a brewery, it’s tempting to mix personal and business expenses, especially in the early stages when capital is tight. But blending accounts can lead to serious bookkeeping headaches and complicate your tax filings.
Setting up a dedicated business checking account and credit card not only simplifies tracking expenses but also strengthens your legal protections as a business owner. When applying for financing or trying to attract investors, having clean, separate records demonstrates that you’re operating professionally.
If you’re still navigating the startup phase, understanding the process of starting a business in North Carolina is essential. From registering your entity to obtaining the necessary licenses, having a solid financial foundation in place from the outset increases the likelihood of long-term success.
2. Use Accounting Software Designed for Breweries
Breweries have unique needs, including tracking ingredients, managing production costs, ensuring distribution, and complying with regulatory reporting requirements. General accounting software might not be enough. Consider choosing a platform or an add-on that is specifically tailored for manufacturing or beverage production.
Many of these systems integrate inventory management with your financial data, helping you see how your raw materials, labor, and packaging costs translate into profit margins per pint. Over time, you’ll gain insight into seasonal trends and customer behavior, allowing for smarter purchasing decisions.
If you’re unsure where to start, consult with a tax professional or North Carolina registered agent accountant who understands the brewing industry. They can help you set up a solution that scales as your business grows.
3. Monitor Cash Flow Consistently
Breweries often experience irregular cash flow, especially those with taprooms, food service, or distribution contracts. Delayed payments from vendors, unexpected equipment repairs, or seasonal slowdowns can throw off your balance sheet if you’re not prepared.
Establishing a rolling cash flow forecast can help you spot potential shortfalls before they become critical. Review incoming and outgoing funds on a weekly or monthly basis to ensure you’re not overspending or missing payment deadlines.
Managing your brewery’s liquidity is crucial for making informed reinvestment decisions whether you’re expanding your canning line or opening a second location. Connecting with local accounting experts can give you expert insights into budgeting, forecasting, and preparing for seasonal shifts in demand.
4. Stay Ahead of Excise Tax Obligations
Alcohol production is heavily regulated, and breweries must navigate a complex system of local, state, and federal taxes. In North Carolina, you’ll need to file monthly excise tax reports based on the volume of beer your brewery produces and distributes. Falling behind can result in steep penalties or even the suspension of your brewery permit.
Work with an accountant who understands the specifics of alcohol tax compliance in North Carolina. Many states have adopted digital filing systems that require precise data entry, so using accounting software that integrates with regulatory forms can save you hours of manual work.
You’ll also need to stay current with changes in state laws and IRS rules. Tax reform or shifts in reporting requirements can affect your bottom line, so keeping a strategic advisor on call ensures you’re never blindsided.
5. Track Inventory With Precision
Ingredient costs and inventory management are critical to a brewery’s profitability. Hops, grains, yeast, cans, and kegs must be accurately tracked, not just for financial records but also to comply with food safety standards and regulations.
Mistakes in inventory tracking can lead to spoilage, missed production schedules, or incorrect reporting of cost of goods sold (COGS). Use barcoding, inventory apps, or automated tracking tools to manage raw ingredients and finished product levels in real time.
Integrating inventory with your accounting system helps identify trends like over-ordering, shrinkage, or seasonal product surpluses. This makes it easier to adjust purchasing and production schedules for maximum efficiency.
6. Don’t Wait Until Tax Season for Help
Tax planning should be a year-round effort, not something reserved for the weeks leading up to your filing deadline in April. Breweries have numerous deductions available, including depreciation on equipment, utilities, employee wages, and mileage. However, missing key documents or deadlines can result in financial losses.
A tax expert can help you implement a proactive strategy that aligns with your revenue cycle and production calendar. They’ll also ensure that you’re categorizing expenses correctly so you can take advantage of every deduction available. Hiring a bookkeeper or CPA who specializes in the food and beverage industry gives you peace of mind and helps you avoid audits or late filing fees.
7. Leverage Financial Reports to Guide Growth
Your profit-and-loss statement, balance sheet, and cash flow reports aren’t just for tax season; they’re powerful tools for steering your business. Reviewing these reports monthly can reveal patterns in sales, highlight underperforming products, or indicate where costs are increasing.
When it’s time to apply for a loan, pitch to investors, or scale production, having strong financials gives you credibility and confidence. You’ll also be able to set more realistic goals for hiring, marketing, and equipment upgrades.
If you’re expanding or looking to restructure, an accountant can offer strategic advice backed by numbers. Their insight helps you make informed decisions, not emotional ones, about your brewery’s future.
Brewing Up a Recipe for Success
North Carolina’s breweries are more than just taprooms; they’re employers, community hubs, and contributors to the state’s vibrant local economy. With the right accounting practices in place, your brewery can continue to grow, thrive, and pour with purpose. Whether you’re just starting a business in North Carolina or scaling an award-winning operation, financial clarity is the key to long-term success.
