Expert Accounting for Bars and Breweries

Financial Statement Assurance for
Bars and Breweries

Your financial statements tell the story of your business, but they need to be accurate and professionally prepared to have real value. Banks, investors, and potential buyers all look at your financial statements to understand your business performance.

For bars and breweries, financial statement assurance is particularly important because of the industry's unique characteristics. Your business likely has high inventory turnover, significant equipment investments, and complex revenue streams from different sources – draft sales, bottle sales, food service, and special events.

We provide compilation and review services that ensure your financial statements accurately reflect your business operations. Our team understands how to properly account for brewery equipment depreciation, seasonal inventory fluctuations, and the various revenue recognition issues that come with tap room sales versus distribution.

These professionally prepared statements become invaluable when you're seeking financing for expansion, negotiating with distributors, or considering selling your business. We've helped numerous breweries secure loans and investment capital by presenting their financial story in the clearest, most professional way possible.

Tax Preparation and Planning for
Bars and Breweries

Tax season doesn't have to be stressful when you work with accountants who understand your industry inside and out. Bars and breweries face unique tax challenges that require specialized knowledge to navigate effectively.

Beyond basic income taxes, your business deals with federal excise taxes on alcohol, sales taxes with varying rates depending on alcohol content, and potential local taxes depending on your municipality. We stay current on all these requirements so you don't have to.

Our year-round tax planning approach means we're not just preparing last year's returns – we're helping you make strategic decisions throughout the year that will minimize your tax burden. This might include timing equipment purchases to maximize depreciation benefits, structuring business expansions to take advantage of available credits, or planning inventory levels to optimize your tax position.

We also understand the Section 199A deduction and how it applies to brewery operations, potentially saving you thousands in taxes if structured properly. Many general accountants miss these industry-specific opportunities that can significantly impact your bottom line.

Specialized Bookkeeping for Beverage Businesses

Accurate bookkeeping is the foundation of successful bar and brewery operations, but generic bookkeeping services don't understand your industry's complexities. Your business requires specialized knowledge of inventory management, cost of goods sold calculations, and revenue recognition that differs significantly from other retail businesses.

Our bookkeeping services include proper tracking of your beer and liquor inventory, including raw materials for breweries, finished goods, and the complex calculations needed to determine accurate cost of goods sold. We understand how to handle shrinkage, waste, sampling, and promotional inventory that are common in your industry.

We also properly categorize and track your various revenue streams – whether it's tap room sales, distribution sales, merchandise, food service, or special events. This detailed tracking gives you the insights you need to understand which aspects of your business are most profitable and where you should focus your growth efforts.

Our monthly financial reports are designed specifically for bar and brewery owners, highlighting key performance indicators like cost per barrel, tap room sales per square foot, and inventory turnover ratios that help you make informed business decisions.

Payroll and Compliance Management

Managing payroll in the hospitality industry involves complexities that most businesses never encounter. Tip reporting, varying wage structures, and state-specific labor laws create a web of compliance requirements that can be overwhelming for busy bar and brewery owners.

We handle all aspects of your payroll processing, including proper tip reporting and allocation, ensuring compliance with both federal and state requirements. Our system properly tracks and reports tip income, handles tip pooling arrangements, and ensures all tax withholdings are calculated correctly.

Labor laws have specific requirements for hospitality businesses, including break requirements, overtime calculations for tipped employees, and proper classification of workers. We ensure your payroll practices comply with all these requirements, protecting you from potential audits and penalties.

We also handle all your payroll tax filings, including quarterly reports, annual forms, and ensuring all deposits are made on time. This comprehensive approach lets you focus on running your business while we ensure all your employee-related compliance requirements are met.

Beneficial Ownership Reporting Compliance

The Corporate Transparency Act has introduced new federal reporting requirements that affect most bars and breweries. Starting in 2024, many businesses must file beneficial ownership information reports with the Financial Crimes Enforcement Network (FinCEN).

These requirements are complex and the penalties for non-compliance are severe – including potential criminal charges. Many business owners are unaware of these new requirements or confused about whether they apply to their business.

We handle the entire beneficial ownership reporting process for our bar and brewery clients, including determining whether your business is subject to the requirements, identifying who qualifies as beneficial owners, gathering the required documentation, and filing the reports on time.

We also monitor for any changes in beneficial ownership that trigger additional reporting requirements and ensure ongoing compliance. This new requirement isn't optional – it's a federal mandate that can result in significant penalties if not handled properly.

Why Work With ClarkHirth CPAs?

When you choose ClarkHirth CPAs for your bar or brewery accounting needs, you're partnering with a firm that truly understands your industry. Over 20 years of specialized experience in hospitality accounting means we've seen virtually every challenge your business might face.

We don't just prepare your taxes and send you a bill. We become your financial partners, helping you understand your numbers, plan for growth, and navigate the complex regulatory environment that governs bars and breweries.

Our client testimonials speak for themselves. New Park Brewing noted that we "understand their business and culture" and are "proactive and responsive" – exactly the kind of partnership you need from your accounting firm.

We've been recognized by the Connecticut Restaurant Association as 2021 Vendors of the Year, acknowledging our contribution to the hospitality industry in our state. This recognition reflects our commitment to serving businesses like yours with the specialized expertise you deserve, where you are.