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Make a note of that

It's the end of the year.

You have accumulated 12 months worth of wine sales, grape purchases, bottling and production costs. You've tracked winemaker dinners in New York, lunches in Chicago, and breakfasts in Bordeaux. You've bought enough staples to last you a year or two, and have even replenished all of your sticky note supplies. Now it's time to send off your QuickBooks backup (see our suggested approach to sharing your data) to your favorite accountants. 

Accountant or Sherlock Holmes? 
Once we receive that file, we open up your general ledger and start reviewing your expenditures. We look at your journal entries for clues as to why you wrote off that $100,000 worth of inventory at the end of the year. We try to determine if that $5,000 lunch in New York was for one employee or for 10 salesmen during a business meeting. (It makes a difference in their deductibility for tax purposes.) If you haven't made use of those handy comment fields that are located throughout QuickBooks, we may not be able to determine if you bought Cabernet Franc or Pinot Noir grapes for that $3,000/ton purchase that was recorded on January 30th. We will be unable to tell why your tasting room inventory was adjusted down each month or how much wine you donated. And worse, from a tax deductibility standpoint, we won't know if you donated that mysterious wine to the Friends of the Narwhal Society (which is not on the list of approved charities) or to The American Red Cross unless you have documented that fact somewhere. 

Take the mystery out of your numbers
Take full advantage of the memo field when you make journal entries of any kind. Not only will they help your friendly neighborhood accountant at the end of the year, your notes will also help you remember how you treated different transactions so you can repeat those entries in future periods. Without notes, what made perfect sense at the time you entered an adjustment may not mean as much by the end of the year or three years later when you sit down to talk to the IRS auditor. 

Here is some information you might want to record along with transactions you enter in your accounting software: 

1. Grape purchases: record variety of grapes, tonnage, vineyard if applicable
2. Bulk wine purchases or sales: varietal, gallons, vintage
3. Bottling supplies: number of cases purchased, which product
4. Fixed asset purchases: quantity, new or used
5. Partial payments on grape sales/purchases: indicate the % paid and vintage purchased

When it comes to documenting transactions, the more information you can provide at the time of entry, the better. 


 

 


 

 

 

 

 


 

 

Stay Well and Be Informed

Current Updates are Available Via Our Website

We have written articles explaining legislative activity related to income and employment tax (as information changes hourly, we are adding dates to this content.) 

We have a central location for tools and news related to coping with the impact of Covid-19 here

To Our Customers - Remote Work and Sharing Information

For quite some time, our BDCo team members have been taking advantage of our remote-working technology, so we expect limited impact on our ability to serve the needs of our customers. Our processes, procedures and systems are designed to support digital work as we continue to focus on meeting original federal and state tax deadlines. We ask for your continued support in providing all pertinent information via our secure Sharefile portal.

Electronic Forms

Our physical office in St. Helena will be closed until April 7th or later. During this time, our business will be conducted primarily through email, telephone, and other digital media. We will be delivering all tax returns and financial statements in accordance with existing deadlines in electronic form.

Our Promise to You

We are here to offer you help and support, especially now, during this time of global uncertainty.

Contact Us

Email individual team members directly or if you call us at the office please call 707-963-4466, extension 210 to put all messages in a central place.

Stay well,
The BDCo Team

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