The PDF is a slide deck on the topic of accounting GL software and operational accounting in your finance department for a Craft Spirits company.
Here is text only outline of the slide deck.
Process and Tools
The topics of General Ledger (GL) software and operational accounting are part of a larger discussion about your organization’s accounting process and tools.
General Ledger (GL) Software
Other Expense Management
Inventory Tracking (including POS for DTC)
** Not covering payroll processing but will in future presentation related to compliance issues.
Accounting (GL) Software
Small Business Systems
Relatively low cost and low IT requirements
Easier to use for accountants with less experience
Don’t handle inventory accounting well, natively
Examples (QuickBooks, Xero)
Used for operations as well as accounting, creating an easier data flow
Can automate bringing together data from multiple systems and locations into a central hub
Reduces accounting hours through automation
More customizable reporting
Significant cost increase over small business grade accounting software
May have more IT requirements
Usually requires specialized consulting for implementation, maintenance and report writing
Bill payment platforms
Allow for more automated digital approval process including multiple layers of approval
Integrate the payment processing with recording the transaction in the accounting software
Provide a quick digital record with invoice/receipt images that are often quicker and easier to use then accounting software.
Examples: Bill.com, Melio, Ramp
Bank payment platforms
May provide the same level of online execution including sending checks
May also integrate with accounting software
May have limited access options and approval capabilities
Other Expense Management
Software including phone Apps
Deployed across employees that will have expense reimbursements or company charge cards
Streamlines record collection, categorization, explaining, approvals, processing reimbursements
Integrates with accounting systems
Examples: expensify, tally, concur, many others…
Invoices are usually prepared with your accounting system to streamline preparing the invoice for a customer and recording the sale and receivable in the accounting system.
All conventional small business accounting software has this functionality including customizations.
Raw materials and work in process is usually a shared responsibility with Production team
Finished goods in the wholesale distribution channel is often a shared responsibility with Sales team
Finished goods in the DTC channel is a shared responsibility with tasting room and e-commerce teams
Raw Material, Packaging and Work in Process
Production team has “custody.”
Accounting needs reports from Production on what is incoming, what is in various stages of process and what is outgoing. This information is used in Cost Accounting.
Best practice is for Production Teams to use software for their operational tracking that also handles TTB compliance and can provide the information needed to Accounting.
Even with production software, unless using an ERP, getting production data into the Cost Accounting is one of the more manually intensive tasks of the Accounting function.
Finished Goods for Wholesale
In the custody of warehouse operators.
Accounting needs reporting on incoming, quantities on hand and outgoing.
This data may be useful in verifying sales numbers as well as keeping a record of inventory on hand.
Finished Goods for Tasting Rooms and E-comm
And while we’re at it, let’s talk about payment processing
In Tasting Room and E-comm teams’ custody
Accounting needs reporting of incoming, on hand and outgoing inventory as well as reporting of the sales and payments processed.
Conventionally this done with a Point-of-Sale system (POS). Some can integrate with accounting systems, but all should have necessary reporting.