Month: October 2025

Positioning Your Brewery or Distillery for Sale: 5 Considerations

Are you thinking about selling your brewery or distillery? Selling a business is a lengthy and multifaceted undertaking that requires years of advanced planning. To ensure the process is as smooth, tax-efficient, and successful as possible, you need to begin preparing well ahead of time. Here are some factors you will need to take into account as you prepare to sell your business.

Consider the type of buyer you want to sell to
Two of the most common options for selling a business are (1) selling to a private equity firm and (2) selling to a strategic buyer. Each option has its own advantages and challenges. Private equity firms are investment companies that acquire businesses, increase their value through strategic improvements, and then sell them for a profit. Strategic buyers, on the other hand, are typically companies in the same industry looking to integrate the target company’s assets and resources into their existing business. The choice between selling to a private equity firm or a strategic buyer depends on what kind of involvement you want to retain in the business, your financial goals, and other factors.
Review your financial records and compliance
Your buyer will need to see recent copies of your financial records, including balance sheets, profit and loss statements, cash flow statements, bank statements, and tax returns. They will also need to verify your compliance with relevant local, state, and federal regulations. Make sure that your legal and financial records are up-to-date and sufficiently detailed. Well-organized records help provide a clear picture of your business’s health and instill confidence in your buyer.
Consider the structure of your sale
Business sales can be structured as stock sales or asset sales. The structure of the sale determines how it will be taxed as well as your level of future involvement in the business. In an asset sale, a buyer purchases specific assets from the seller rather than the entire business, with the seller retaining ownership of the business entity. The sale of some types of assets results in ordinary income, while the sale of others results in a capital gain—and so, they are taxed differently. Buyers generally prefer asset sales for liability and tax reasons. A stock sale, on the other hand, is the sale of the business’s shares, which transfers ownership of the entire legal entity to the buyer. Sellers generally prefer stock sales for more favorable tax treatment on their end, as proceeds from stock sales often qualify for capital gains tax rates, which are significantly lower than ordinary income tax rates. You and your buyer will have to come to an agreement as to how you will structure the sale.
Have a succession plan in place
Succession planning is a critical owner responsibility that helps ensure your business continues running smoothly and successfully after you leave. A succession plan provides a roadmap for the future of your business and also earns you the confidence of potential buyers, your employees, customers, and other stakeholders by assuring them that a solid plan is in place for the transition of leadership.
Work closely with advisors from the start
It’s important that you work with reliable advisors who can guide you throughout the sale process. Your team of advisors will likely include legal counsel, an accountant, and other professionals.

Make RBT Part of Your Team

RBT CPAs is here to support and advise you before, during, and after the sale of your brewery or distillery. Our team has been providing top-tier accounting, tax, audit, and advisory services to clients in the Hudson Valley and beyond for over 55 years. Give RBT a call today to find out how we can be Remarkably Better Together.

New York Allots $47 Million Toward Free Community College for Adult Learners

The New York State budget for 2025-2026, passed in May, includes several education initiatives aimed at expanding access to educational opportunities for New York residents. Among these initiatives is the SUNY and CUNY “Reconnect” program, which launched with the start of the Fall 2025 semester. The State has allocated $47 million toward this program, which offers free community college to adult SUNY and CUNY students in high-demand fields. Below are some of the highlights of this statewide initiative.

What is the purpose of the program?

The purpose of the CUNY/SUNY Reconnect program is to expand access to higher education and career mobility for adult learners in New York State. The program aims to make college affordable for a greater pool of New Yorkers while also strengthening the state’s workforce in emerging industries.

Is this program new to New York State?

CUNY Reconnect first launched its pilot program in the fall of 2022, with funding of $4.4 million. The FY26 enacted state budget significantly expands the reach and impact of the CUNY Reconnect program. SUNY Reconnect launched for the first time in 2025.

Who qualifies for the program?

The program is open to New York residents between the ages of 25 and 55 with no previous college degree, who enroll in approved SUNY or CUNY associate degree programs in the following high-demand fields:

Advanced manufacturing
Artificial Intelligence
Cybersecurity
Engineering
Technology
Nursing and allied health professions
Green and renewable energy
Pathways to teaching in shortage areas

Students must be New York State residents or qualify for in-state tuition. Students must also take at least six credits per semester and must complete their degree within ten semesters.

What costs does the program cover?

The Reconnect program covers tuition, fees, books, and supplies, after applicable financial aid, for qualifying students. Eligible students will also have access to academic advising and personal support through the program.

Are online courses covered?

Yes, both SUNY and CUNY Reconnect cover eligible online courses in addition to in-person classes.

When is funding available?

Funding became available at the start of the Fall 2025 semester.

Have more questions?

New York’s free community college program aims to remove financial barriers to higher education for adult learners while also promoting workforce development in high-demand fields. Additional information regarding this initiative, including application information and answers to Frequently Asked Questions, can be found on the SUNY and CUNY websites. And as always, for all your school district’s accounting, tax, audit, and advisory needs, please don’t hesitate to reach out to RBT CPAs. RBT CPAs has been providing accounting services to organizations and businesses in the Hudson Valley and beyond for over 55 years. Call us today to find out how we can be Remarkably Better Together.

Key Tax Considerations When Selling Your Restaurant

Thinking of selling your restaurant? The sale of any business comes with a myriad of tax implications, which is why it’s important to work closely with a tax professional who can help you navigate your options. Below are five key tax-related points you should consider when it comes time to sell your restaurant.

Asset Sales vs. Stock Sales

How the sale of your restaurant will be taxed depends largely on the structure of the sale. Business sales can be categorized into two main types: stock sales and asset sales.

Asset sale: In an asset sale, a buyer purchases specific assets from the seller rather than the entire business, with the seller retaining ownership of the business entity. Assets include both tangible assets—such as buildings, property, and equipment— and intangible assets, such as licenses, patents, and copyrights. The sale of some asset types results in ordinary income while the sale of others results in a capital gain; as a result, they are taxed differently.

Stock sale: A stock sale is the sale of the restaurant’s shares, which transfers ownership of the entire legal entity to the buyer. Stock sales are typically preferred by sellers for their more favorable tax treatment; proceeds from stock sales often qualify for capital gains tax rates, which are significantly lower than ordinary income tax rates.

Properly Valuing Assets and Reporting Goodwill

If selling your restaurant through an asset sale, “goodwill” refers to the amount paid by the buyer over the fair market value of the business’s net assets. To calculate goodwill, the buyer and seller must first agree on the valuation of each asset. Sellers typically prefer to allocate more to goodwill for more favorable tax treatment on their end (capital gains rate), while buyers prefer to allocate more to tangible assets that can be depreciated for immediate tax deductions. It’s essential to properly value all assets and avoid inflating goodwill to ensure accurate financial reporting, maintain stakeholder trust, and support informed decision-making.

Succession Planning

A succession plan identifies who will take over the business after you leave and enables a smooth transition of leadership upon the sale of your business. Succession planning is closely connected with tax planning, as a succession plan will determine how your restaurant’s assets will be transferred. Different methods of transferring ownership—such as selling the business to an external buyer, selling to an internal employee, selling to employees via an Employee Stock Ownership Plan (ESOP), gifting the business to a family member, or establishing a buy-sell agreement among multiple owners—all carry different tax implications.

Selling or Gifting to Family Members

If transferring ownership to a family member, you can choose to either sell the business or give it as a gift. Both methods come with their own tax implications. Selling the business will likely require you to pay capital gains tax, while gifting the business may trigger federal gift tax.

Installment Sales vs. Full Payment Upfront

When selling your restaurant, you can choose to receive the full payment upfront or structure the sale as an installment sale. A lump-sum payment provides immediate cash, but will result in a large tax liability for the entire gain for the year of the sale. An installment sale, which takes place over several years in multiple payments, allows you to spread the taxable gain out over a period of time and potentially lower your tax liability. However, not all assets qualify for installment sale tax treatment. Both sale options come with their own risks and benefits, so it is recommended that you meet with your accountant to discuss your options in greater detail.

Get in Touch With Us

For help navigating the tax implications of selling your restaurant, please don’t hesitate to reach out to our restaurant accounting professionals at RBT CPAs. Our team is here to support all of your accounting, tax, audit, and advisory needs—from the day you start your business until the day you sell it, and beyond. Give us a call to find out how we can be Remarkably Better Together.

The Importance of Timely Bank Reconciliations

We’ve all seen the cases on the news—another local government falls victim to fraud. Incidents of corruption in local municipalities—many involving the theft of staggering amounts of public funds—occur far too often for comfort. Fraud can take place even when an organization undergoes annual audits and implements preventive policies. So, what can you do to make sure your municipality isn’t the next victim? Relying on an annual audit alone won’t be enough. In fact, a proper system of internal controls for any municipality requires monthly examinations of financial records and reconciliation of accounts.

So, why are timely bank reconciliations so important for local governments? Let’s talk about it.

Why are bank reconciliations necessary?

For local governments, bank reconciliation—the process of comparing the municipality’s financial records against its bank statements to ensure they match—is a critical internal control that serves several important purposes:

Identifies errors and discrepancies in financial statements.
Helps to detect and prevent fraudulent activity.
Safeguards the municipality’s cash and reinforces accountability.
Provides an up-to-date picture of the municipality’s cash position, leading to more effective cash management.
Helps to maintain public trust by demonstrating responsible stewardship of taxpayer dollars.

How often should reconciliations be done?

Reconciliations should be prepared monthly, typically at month-end after the municipality receives its bank statement. Waiting weeks, months, or years to reconcile your books significantly increases the risk of fraud going unnoticed. The sooner you can catch discrepancies or inconsistencies, the less damage that can be done.

Bank Reconciliation Best Practices

The Office of the New York State Comptroller provides guidelines for local government bank reconciliations, summarized below.

Bank reconciliations should be performed monthly. Any discrepancies between net bank balances and general ledger cash accounts should be researched and explained. Reconciliations should be reviewed by a supervisor, who can authorize any necessary adjustments.
To ensure the proper segregation of duties, bank reconciliations should be performed by an employee or official who does not have (1) access to or custody of cash or (2) the responsibility of recording cash receipts, cash disbursements, or journal entry transactions.
During bank reconciliation, bank statements and check images should be examined for potential indicators of fraud, such as suspicious payees, large dollar amounts, and secondary endorsements. Check images should be saved in a digital format for audit purposes.
Bank statements and checks should be stored in a secure location to protect account numbers.
All banking documents not required to be maintained should be shredded to prevent unauthorized access to bank account information.

Work with RBT CPAs to Safeguard Your Municipality Against Fraud

RBT CPAs’ government accounting team is here to guide you through the bank reconciliation process and support all of your municipality’s other accounting, tax, audit, and advisory needs. We’ll help put you in the best position to safeguard your municipality’s financials and reputation. Call us today to find out how we can be Remarkably Better Together.

Creating Digital Audit Trails in a Paperless Environment

As the world moves further away from paper systems and toward fully digital processes, unions are joining in the shift. From electronic recordkeeping and digital communications to E-dues and remote voting systems for union officer elections, many unions are embracing the efficiency offered by digitalization. As methods of recordkeeping and communication transition to an online format, it’s critical that unions adjust their internal control systems accordingly. This article will discuss the importance of establishing “audit trails” and how unions can maintain these essential internal controls in a paperless environment.

What Are Audit Trails and Why Are They Important?

An “audit trail” is a critical type of internal control that provides a detailed record of activities and transactions within an organization. Audit trails provide a step-by-step history of organizational and employee activity, helping to prevent and/or detect fraud and abuse. Auditors rely on audit trails to verify financial transactions and approval processes, assess for compliance, and identify potential issues. Before electronic systems became the norm, organizations established audit trails through careful manual documentation of all transactions via handwritten journals and ledgers. The intention was essentially to create a “paper trail” for the purpose of tracking the organization’s financial activity, promoting accountability, and maintaining transparency. Now, in the digital age, the concept of audit trails remains the same, but the process of establishing them has shifted. Whereas the goal was once to create a “paper trail,” you could say the aim is now to establish a “paperless” digital trail.

Verifying Support Documentation and Approval Processes in the Digital World

During an audit, we as auditors look for (1) support and (2) approval. What does this mean? Audits examine both the supporting documentation for financial transactions as well as the internal approval process to confirm that all of an organization’s transactions have been properly authorized and recorded. An organization must be able to provide proof that its financial transactions have gone through the proper approval process. Audit trails can provide this proof by logging actions such as purchase order approvals, invoice signoffs, and approval signatures.

So, how can unions establish audit trails in the digital world? Here are the two most common methods.

Specialized Software

One way unions can maintain an audit trail is by purchasing specialized software for document management. These platforms help organizations digitize, store, access, and manage documents. They also record user interactions with documents in real-time, providing a timestamped history of user actions and making it easier to track approvals and spot fraudulent activity. These programs automate the process of tracking and logging changes, so users don’t have to worry about recording every transaction. Document management software also comes with built-in protections such as access controls and secure storage to prevent unauthorized access to confidential information. Software solutions are an excellent way to manage your union’s records and record approval processes, but they can be expensive. As an alternative to these automated programs, unions can establish audit trails using emails.

Using Email Records to Create an Electronic Trail

Another method of recording union activity and transactions for the purpose of creating an audit trail is via email. For example, internal purchase approvals granted over email can be used as evidence that a transaction was authorized. Other email records that can be included as part of an audit trail are purchase orders, invoices, and receipts. However, it’s important to note that email audit trails are subject to human error and may be less secure than specialized document management software.

Staying Audit-Ready

Accurate recordkeeping, document management, and proper approval processes are critical components of audit-preparedness. For additional guidance on keeping your union audit-ready, reach out to our union accounting experts at RBT CPAs. Our team is here for all of your union’s accounting, audit, tax, and advisory needs. Give us a call today to find out how we can be Remarkably Better Together.

Donating a Conservation Easement: What You Need to Know for Tax and Planning Purposes

Donating a conservation easement is a form of charitable giving that offers significant tax benefits for the donor while also preserving land for conservation purposes. Let’s talk about what a conservation easement is, the process of donating one, and the corresponding tax benefits.

What is a conservation easement?

A conservation easement is a voluntary legal agreement between a private landowner and a government agency or land trust that protects the natural resources of a property by permanently restricting future land use and/or development of the property. A conservation easement can be sold or donated, and transfers to all future landowners with the deed of the property. Conservation easements are intended to protect resources and values such as water quality, wildlife habitat, sensitive ecosystems, wetlands, riparian areas, scenic areas, working forests, and historic sites. The terms and restrictions of each conservation easement vary depending on the specific conservation objectives it is designed to meet.

What is the process of donating a conservation easement?

In general, you should follow these basic steps when donating a conservation easement:

Consult with the appropriate professionals, including your attorney, accountant, and tax advisor, to discuss the legal and tax implications of donating an easement.
Identify a qualified government agency or land trust to receive the donation.
Ensure that the easement meets at least one of the conservation purposes specified under Section 170(h) of the tax code.
Commission an appraisal of the easement from a licensed appraiser to determine its fair market value.
Complete a baseline study of the property, using reports, photos, maps, etc., to document the condition of the land.
Sign and record the easement agreement.
File IRS Form 8283 with your federal tax return, including a copy of the appraisal summary and signatures.
Report to state and local authorities if applying for state tax deductions or credits.

What are the tax benefits of donating a conservation easement?

Federal Tax Deduction: Taxpayers who donate a conservation easement are eligible for a federal tax deduction equal to the fair market value of the easement, determined by a qualified appraisal. Most taxpayers donating qualified property can deduct up to 50% of their adjusted gross income (AGI), while qualified farmers and ranchers can deduct up to 100% of their AGI. Unused deductions may be carried forward up to 15 years.
State and Local Tax Credits or Property Tax Relief: Many states offer their own incentives for conservation easements, including tax credits and/or property tax exemptions. For example, New York State offers a tax credit of 25% of the school district, county, and town real property taxes paid during the current tax year on the land subject to the conservation easement, capped at $5,000 each tax year.
Federal Estate Tax Benefits: By lowering the value of a taxable estate, a conservation easement can result in reduced estate taxes. Additionally, the IRS offers an estate tax exclusion of up to 40% of the value of the land protected by a qualified conservation easement, with a maximum exclusion of $500,000.

What else should you be aware of?

Exception to partial interest rules: While tax deductions are typically not available for donations of partial property interests (interest that consists of less than the donor’s entire interest in the property), qualified conservation contributions are an exception to this rule.
Make sure you are donating to a qualified organization.
Overvaluation of conservation easements is considered a form of tax abuse and can lead to severe penalties.
Lack of a proper appraisal or baseline documentation may cause you to be ineligible for a tax deduction.

Call Us to Learn More

Considering donating a conservation easement? RBT CPAs’ real estate accounting team is here to guide you through the process and help you maximize your tax benefits. Give us a call today to find out how we can be Remarkably Better Together.

Get Started on Your Year-End Tax Planning and Cash Management Now

Believe it or not, we’re once again nearing the end of the tax year. With December fast approaching, we want to emphasize the need for timely year-end tax planning and cash management. These two components of financial management work together to support your business and personal goals. Let’s go over some base-level considerations related to tax planning and cash management for your veterinary practice.

Tax Planning Considerations

At its core, tax planning—whether for an individual or a business—aims to project and manage tax liability. Since many veterinarians are also practice owners, early planning is essential for both business and individual tax purposes. Here are some proactive steps you can take at the practice level to manage your tax liability and avoid surprises come April 15^th.

Cash Basis Planning: If your hospital reports on an accrual basis, a conversion to cash/tax basis may be necessary.
Plan for Equipment Purchases Before Year-End: Section 179 and bonus depreciation allow businesses to immediately deduct the full cost of qualifying equipment placed into service during the tax year. To qualify for a tax deduction for this tax year, make sure the equipment is purchased, physically received, and placed into service by December 31^st.
Maximize Tax-Advantaged Retirement Contributions: For practice owners, selecting the best tax-advantaged retirement plan depends on whether you have employees, your annual income, and how much you want to contribute. Common options include a 401(k), SEP IRA, SIMPLE IRA, and Defined Benefit Plan. Maximizing tax-advantaged retirement contributions in the right plan as an employer is one of the most effective tax management strategies.
Year-End Employee Bonuses: Are you considering a little something extra at year-end for your practice’s hard-working staff? Bonuses are deductible and take various forms: profit-sharing, retention bonuses, production-based bonuses, or discretionary year-end bonuses. Bonuses are used to reward performance, encourage retention, and incentivize your team. If you plan to issue your team bonuses as a “thank you” and as a tax planning decision, issuing a simple check or cash payment without proper tax withholding will not suffice. IRS regulations require that year-end bonuses be processed through payroll and be properly taxed and reported. Make sure you are compliant to avoid incurring any additional penalties and liabilities.

Cash Management

Cash management is essential for achieving your tax planning goals and ensuring you have the cash you need to operate. Tax planning helps you make informed purchasing decisions and drives cash management through year-end. Below are some considerations to keep in mind when it comes to cash management.

Consider When It Does and Does Not Make Sense to Pre-Pay: For practices that report on a cash basis, there may be opportunities to pay certain expenses in the current year.
Reserve Cash for Slower Months: Figure out the amount you need set aside for taxes and overhead expenses in advance to ensure you always have enough cash readily available to cover these expenses during slower months.
Consider Whether to Finance Equipment: Cash management can help you determine whether you should finance new equipment purchases or pay with cash up front.
Negotiate with Vendors: To improve your practice’s cash flow, look for vendors with flexible payment terms or negotiate flexible terms when possible.

Let RBT Help You with Tax Planning and Cash Management

Above are just some of the factors that play a role in tax planning and cash management for veterinary practices. Year-end will be here before we know it, so it’s important to get started on your tax planning now, especially in light of recent tax law changes under the One Big Beautiful Bill Act. At RBT CPAs, we help practices project and manage tax liability through strategic tax planning and provide advice on cash management so you can reach your goals. Give RBTs’ veterinary accounting team a call today to make an appointment and find out how we can be Remarkably Better Together.

Qualified Charitable Distributions: Support the Causes You Care About While Reducing Your Taxable Estate

From the year they turn 73, owners of IRAs must begin to take required minimum distributions (RMDs) annually. An RMD is the minimum amount an individual must withdraw from their IRA each year. These withdrawals increase the IRA holder’s overall taxable income, potentially triggering higher tax rates and impacting the individual’s eligibility for certain tax deductions and credits. However, a person can avoid this income increase by donating to charity through a qualified charitable distribution (QCD), which also satisfies their RMD requirement. Let’s go over some of the most common questions surrounding qualified charitable distributions and how QCDs can be incorporated into your estate planning strategy.

What is a qualified charitable distribution?

A qualified charitable distribution (QCD) is a tax-free transfer of money from an individual’s IRA to a qualified charity. The distribution must be made directly by the trustee of the IRA to the selected charity (a distribution paid to the IRA owner first and then donated does not count as a QCD). For IRA owners who are 73 or older, QCDs count toward annual required minimum distributions (RMDs) without increasing the taxpayer’s adjusted gross income (AGI).

Who can make a qualified charitable distribution?

Owners of IRAs who are at least 70.5 years old can make QCDs. This option to make a QCD is available to eligible IRA owners regardless of whether they itemize deductions on their tax returns.

What is the maximum amount you can donate via QCDs per year?

In 2025, individuals can donate up to $108,000 via QCDs per calendar year across all charities. For married couples over 70.5 years old, each spouse can donate up to $108,000. This amount is indexed annually for inflation.

Which charities count as “qualified charities”?

Not all charities are considered qualified for QCD purposes. The IRS maintains a searchable database of all qualified charities, which can be accessed here. Before donating to a charitable organization, eligible taxpayers should confirm that the organization qualifies to receive QCDs.

What is the role of qualified charitable distributions in estate planning?

A QCD can be used to fulfill all or part of the annual RMD requirement for IRA owners aged 73 and over. By reducing the balance of your IRA, QCDs may also reduce your required minimum distributions in future years. In addition, when you make a qualified charitable distribution, your funds are transferred tax-free to a charity of your choice, reducing your taxable estate. By reducing the taxable assets in your estate, QCDs can also help to minimize the tax burden on your heirs upon your death.

Does the One Big Beautiful Bill Act impact QCDs?

The One Big Beautiful Bill Act (OBBBA) introduces a new floor on deductions for donors who itemize, effective for 2026. Under this new provision, donors who itemize will only be able to claim a deduction to the extent that their qualified contributions exceed 0.5% of their adjusted gross income (AGI). However, this provision does not impact qualified charitable distributions. QCDs reduce taxable income directly and therefore bypass the new AGI floor, increasing the value of QCDs as a tax strategy for donors over the age of 70.5.

Ask Us Your QCD and Estate Planning Questions

For more information about qualified charitable distributions, and for all of your other estate planning questions, please don’t hesitate to reach out to our experts in our Trust, Estate, and Gift Practice. Our team is here to support your long-term personal wealth and charitable giving goals through a highly individualized client experience. Give us a call today and find out how we can be Remarkably Better Together.

Manufacturing’s Skilled Labor Shortage: What’s Causing It and How Do We Solve It?

The skilled labor shortage remains a leading concern among manufacturers throughout the U.S.—and as more companies embrace Industry 4.0, the demand for workers with advanced technology skills will continue to rise. A 2024 study predicts that as many as 3.8 million positions will open in U.S. manufacturing before 2033, and that half of these positions may go unfilled if the talent challenge remains unsolved.

Let’s talk about some of the causes of the labor shortage in the industry and what’s being done to address this critical issue.

Factors Contributing to the Labor Shortage

The U.S manufacturing sector has experienced a shortage of workers across all skill levels for the last several years. Below are some factors contributing to the shortage, according to Manufacturing Today:

The retirement of high numbers of baby boomers.
Shifting career preferences amongst younger generations.
Economic disruptions from the Covid-19 pandemic causing workers to seek more job flexibility and security.
Regional disparities as rural areas struggle to attract skilled workers due to a lack of infrastructure, education systems, and resources.

The Skilled Labor Shortage or “Skills Crisis”

Most recently, the advent of Industry 4.0 has increased the need for employees with technology-focused expertise in areas such as AI, cybersecurity, data analytics, robotics, and additive manufacturing. According to the National Association of Manufacturers (NAM), the demand for certain skilled workers—including statisticians, data scientists, logisticians, engineers, computer and information systems managers, software developers, and industrial maintenance technicians—will continue to rise over the next several years. However, there aren’t currently enough qualified applicants to fill these roles. This phenomenon, combined with the causes listed above, is a major contributing factor to the skills gap issue facing the industry.

Potential Solutions to the Skilled Labor Shortage

Automation: The automation of manufacturing tasks and processes reduces reliance on human workers and helps improve the efficiency of operations. While automation can certainly improve speed and productivity, the adoption of innovative technologies requires employees with the specialized skills needed to operate them.
So, what is being done to develop and acquire the talent with these specialized skillsets?

Education Solutions: Collaborations between local high schools, post-secondary institutions, and employers are helping to prepare students for careers in advanced manufacturing by equipping them with critical industry-specific skills and creating direct talent pipelines to jobs. For example, Ivy Tech in Indiana offers college credits and credentials to high school students through dual credit and enrollment programs, many in career and technical education (CTE) fields. Students can earn manufacturing certifications recognized by national industry associations such as the American Welding Society (AWS), National Institute for Metalworking Skills (NIMS), and the Smart Automation Certification Alliance (SACA)—free of charge. Ivy Tech partners with employers in Indiana to offer graduating students entry-level manufacturing roles.
Apprenticeships, Internships, and University Partnerships: Internships, apprenticeships, and partnerships with higher education institutions all represent opportunities for manufacturers to establish a talent pipeline of highly skilled and qualified students—many trained on the latest technologies—to fill critical roles at their companies.
In-house Training Initiatives: In addition to recruiting skilled workers, many manufacturers are focusing their efforts on developing talent from within. In-house training programs aim to upskill and reskill the current workforce in areas such as robotics, AI, and advanced data analytics. Upskilling existing employees saves employers the time, energy, and costs associated with hiring new workers.
Workplace Culture and Incentives: Maintaining a positive workplace culture is another way to attract and retain high-value employees. Incentives such as flexible work arrangements, an emphasis on work-life balance, career development opportunities, and employee wellness programs can all make a company much more attractive to talented prospective employees.

Let Us Help

Tackling the skilled labor shortage in manufacturing will require a combination of technology solutions, educational partnerships, training initiatives, and retention efforts. While you work to implement your own solutions to the skilled labor challenge, let RBT CPAs handle all of your accounting, tax, audit, and advisory needs. Contact us today to find out how we can be Remarkably Better Together.

Crafting a Business Budget for Your Brewery or Distillery

Budgeting is an essential component of financial planning if you want to set your business up for long-term success. When done properly, a budget serves as a roadmap that business owners can follow for responsible financial management and growth. This article will discuss the benefits of creating a business budget and outline some budgeting basics for breweries and distilleries.

Why You Need a Budget

In an industry subject to variables like fluctuating supply costs and evolving consumer trends, alcoholic beverage producers have even more reason to plan ahead financially.

For brewery and distillery owners, a budget helps to:

Build a picture of your business’s financial standing.
Provide insight into sales performance, spending, and profits.
Prepare your business for future challenges and unexpected events.
Guide important decisions related to resource allocation, improvements, investments, staffing, debt management, and other key areas.
Signal when financial or operational adjustments are necessary.

Budgeting Basics

Though the process can vary from business to business, below are the basic steps that can be followed when developing a business budget:

Estimate Revenue

To estimate expected revenue for your brewery or distillery for a given period of time, you’ll need to identify all reliable sources of income during that period. Sources of income may include taproom sales, wholesale distribution, event sales, food service, merchandise sales, tours, membership programs, and other revenue streams. You can use historical sales data as a basis for predicting future revenue.

Estimate Costs

Next, you’ll want to identify all of the costs you expect to incur over that same time period, including fixed, variable, and one-time expenses. Fixed costs include preset expenses such as rent, mortgage payments, staff salaries, debt payments, software subscriptions, and insurance premiums. Variable costs are subject to change from month to month and include expenses such as raw materials, some utilities, supplies, and shipping costs. One-time expenses are non-recurring costs such as new equipment or vehicle purchases, repair costs, or purchases of real estate.

Establish a Contingency Fund

It’s always a good idea to set aside funds within your budget for unpredictable circumstances, such as equipment failures, poor growing seasons, natural disasters, and other unforeseen events. This way, you’ll have some financial cushion to fall back on in the case of an emergency.

Determine a Surplus or Deficit

After estimating your revenue and expenses, you can determine whether you will have a budget surplus or deficit. If your estimated income is greater than your estimated expenses, you will have a budget surplus. If your estimated expenses outweigh your estimated income, you will have a deficit. Once you have this information, you can choose how you will either (1) appropriate surplus funds or (2) adjust your revenue and/or expenses to close the budget gap.

Review and Adjust the Budget Regularly

Once your budget is created, you should review and reassess it regularly, comparing your actual sales and spending figures against your budgeted amounts. This way, you can catch and address any issues or budget gaps early on. You should be prepared to update and adjust your budget as necessary if issues are identified.

Plan Ahead for Financial Success

Developing a business budget is an integral part of financial planning. For more guidance on how to set your business up for financial success, please don’t hesitate to reach out to RBT CPAs. Our experts provide highly individualized accounting, tax, audit, and advisory services to businesses and organizations in the Hudson Valley and beyond. Contact us today to learn how we can be Remarkably Better Together.