Positioning Your Brewery or Distillery for Sale: 5 Considerations

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.

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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

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

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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

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.

  1. 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.
  2. 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.
  3. 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.
  4. Bank statements and checks should be stored in a secure location to protect account numbers.
  5. 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

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.

  1. 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.

  1. 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.