Are you using a modern point-of-sale (POS) system to facilitate sales at your brewery or distillery? If so, are you making the most of your system’s capabilities? Cloud-based POS systems are quickly becoming the norm for the industry and for small businesses in general. In fact, there are modern POS systems designed specifically for the craft beverage industry. Whether you currently utilize a cloud-based POS system or not, let’s talk about some of the ways a modern point-of-sales system can be leveraged to improve your business’s efficiency and profitability.

What’s the point of a POS system?

A point-of-sale (POS) system serves as a central hub for transactions and data within your business, allowing you to manage food orders, payments, invoicing, inventory, sales tracking, staff scheduling, and more, all from a single location. By automating many of these processes, cloud-based POS systems help to improve accuracy, consistency, and efficiency across the board. Beyond helping businesses optimize their everyday operations, modern point-of-sale systems also promote long-term profitability by providing key data and insights for decision-making. Here’s how.

• Product Sales: Not only do POS systems process and record sales automatically, but they also enable you to securely process multiple forms of payment, including cash, card, and mobile payments.
• Orders and Customer Experience: POS systems help facilitate a smooth and efficient ordering experience by updating menus and pricing in real time, communicating orders instantaneously to the kitchen, reducing staff errors, and cutting down on waiting times.
• Staff scheduling: POS systems streamline staff scheduling by creating schedules based on employee availability and staffing needs, helping to prevent both understaffing (which can negatively impact the customer experience) and overstaffing (which can hurt your bottom line).
• Inventory management: POS systems automatically update inventory levels in real time, helping to avoid unexpected stock shortages as well as wasted inventory.
• Sales and profit tracking: By tracking sales data, a POS system provides you with valuable insights regarding your most popular products, peak hours, seasonal trends, and more. POS systems also enable you to track the profitability of different menu items so you can optimize your offerings based on that information.
• Payroll management: A POS system can help to streamline your payroll processes by automating time tracking, tip management, tax calculations, and more.
• Financial statements and reports: POS systems can be integrated with accounting software to generate financial statements and reports.
• Employee management: Beyond staff scheduling and payroll, POS systems can provide you with additional data points and insights that can help you manage employees, such as performance metrics.
• Demand forecasting: POS systems can analyze historical sales data to predict future demand, which can inform decisions related to production, inventory management, staffing needs, pricing, budgeting, cash flow management, and more.
• Customer data and insights: The data collected by POS systems can be used to gain insight into various customer behaviors and purchasing trends. Information for returning customers can also be stored for the purpose of loyalty programs.

Achieve Your Goals with RBT By Your Side

RBT CPAs is here to support you as you incorporate emerging technologies into your business strategy. Beyond supporting your accounting needs, our team can assist you in maximizing cost savings and profitability while helping you reach your long-term business and professional goals. Give us a call today and find out how we can be Remarkably Better Together.

The IRS has recently issued new guidance related to the reporting requirements for overtime wages and tips. Here is what employers need to know to stay compliant with the new regulations.

As a reminder, below is a brief summary of the new deductions for tips and overtime pay.

Tip Deduction

• Deduction of up to $25,000 per year per person for qualified tips.
• Applies to tax years 2025-2028.
• Available to individuals in qualifying tipped occupations.
• Limited to tips voluntarily paid by customers, including tips shared through pooling arrangements.
• Begins to phase out when the taxpayer’s modified adjusted gross income (MAGI) exceeds $150,000.

Overtime Deduction

• Deduction of up to $12,500 per year per person for qualified overtime compensation.
• Applies to tax years 2025-2028.
• “Qualified overtime compensation” is defined as the “half” portion of overtime pay required under the Fair Labor Standards Act (1.5 times an employee’s regular pay for all hours worked over 40 in a workweek). Anything beyond the half (i.e., double time or more) is not eligible for the deduction.
• Begins to phase out for taxpayers with a modified adjusted gross income (MAGI) above $150,000.

Most Recent Reporting Guidance for 2025-2026

• W-2s and 1099s for 2025 will not be updated to account for the changes under the One Big Beautiful Bill Act. Employers should continue using the current W-2 and 1099 forms for 2025 returns.
• Per IRS Notice 2025-62, the IRS is providing penalty relief for tip and overtime information reporting for tax year 2025. This means that employers will not be penalized for failing to provide a separate accounting of cash tips or qualified overtime compensation for 2025.
• While not legally required, employers are encouraged to provide employees with a separate accounting of cash tips (and occupation codes) and overtime compensation earned in 2025, so that employees can claim these deductions. Tip amounts can be provided to employees through an online portal, additional written statements, or other secure methods, while overtime compensation amounts can be provided in Box 14 of the employee’s W-2.
• Beginning in 2026, employers will be required to file information returns and provide employees with separate accountings of cash tips (as well as the occupation of the recipient) and qualified overtime pay. Employers should monitor IRS guidance for new or revised forms and reporting procedures for 2026.
• Employers should coordinate with payroll providers and ensure payroll systems are set up to track tips and qualified overtime compensation for each employee for tax year 2026.

A Reminder About Tip Credits

New York State’s tip credit allows hospitality employers in New York to pay tipped workers a rate that’s lower than minimum wage by including tips or a portion of them in wage calculations, as long as the employee’s combined wages plus tips equal at least the full minimum wage for their region. The FICA tip credit is a federal tax credit that allows eligible employers in industries where tipping is customary to reclaim a portion of FICA taxes paid on employee tips.

Contact RBT CPAs for Advice

Our experts at RBT CPAs are here to help breweries, distilleries, and distributors succeed by keeping you updated on the latest tax law updates and employer obligations. Give RBT CPAs a call today to make sure you’re prepared for the upcoming changes. Together, we can be remarkably better.

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.

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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

The widely discussed One Big Beautiful Bill, officially signed into law earlier this month, extends many provisions of the Tax Cuts and Jobs Act of 2017 and imposes several new tax and spending policies. The bill’s policies affect nearly every sector of the U.S. economy, impacting individuals, businesses, and organizations in various ways. In general, the bill’s provisions are favorable for many U.S. businesses, extending and creating various business tax incentives, increasing access to capital, and encouraging investment and development. For the purposes of this article, we will explore the provisions of the OBBBA most pertinent to brewers, distillers, and distributors.

Please note that the following are federal provisions, and may apply differently depending on the state in which you operate.

Bonus Depreciation

The OBBBA makes permanent 100% bonus depreciation for qualified property placed in service as of January 19, 2025, reversing the planned phase-down of bonus depreciation. This provision will benefit brewers and distillers investing in new capital equipment, allowing these purchases to be written off immediately.

Depreciation for Qualified Production Property

The OBBBA introduces an elective additional first-year 100% depreciation deduction for “qualified production property,” that is, nonresidential real property used in manufacturing or production activities.

Increased Section 179 Deduction

The Section 179 deduction allows businesses to deduct the full cost of qualifying equipment in the year it is placed into service. The OBBBA increases the Section 179 expensing limit to $2.5 million. This limit is reduced by the amount by which the cost of qualifying property exceeds $4 million (new phasedown threshold).

QBI Deduction

The OBBBA permanently extends the Qualified Business Income (QBI) deduction. This deduction allows eligible taxpayers to deduct up to 20% of their qualified business income. The permanent extension includes additional modifications that expand the phase-in range of the wage and investment limitation and introduce a minimum deduction for businesses in which the taxpayer materially participates.

Immediate R&D Deductions Restored

Among the provisions of the OBBBA are changes to the tax treatment of research and development expenses, designed to encourage domestic research activity. U.S. research and development expenditures, previously required to be amortized over five years, can now be deducted in the year paid. Small businesses averaging $31 million or less in annual gross receipts may elect to apply the change retroactively for tax years beginning after December 31, 2021. All businesses that made domestic R&D expenditures between 2022-2024 may elect to accelerate the remaining deductions for those expenditures over one or two years. Unlike domestic expenditures, foreign R&D costs continue to require a 15‑year amortization under Section 174.

This provision will benefit brewers and distillers investing in research and development activities such as developing new flavors, experimenting with new ingredients, or exploring new production processes.

Removal of Clean Energy Incentives

The OBBBA terminates, phases out, or curtails many clean energy tax incentives, including the energy-efficient commercial buildings deduction, the commercial clean vehicle credit, and certain credits for wind and solar investments.

More to Come

Overall, the One Big Beautiful Bill Act presents expanded opportunities for breweries and distilleries to save on taxes, invest in new equipment, and innovate their products and/or processes. RBT CPAs will continue to provide updated information to our clients as more detailed guidance on the OBBBA is issued. In the meantime, if you have questions regarding the recent tax law changes, please don’t hesitate to reach out to our experts at RBT CPAs. And as always, RBT CPAs is here to support all of your accounting, audit, tax, and advisory needs. Get in touch with us today to find out how we can be Remarkably Better Together.

In need of capital to grow your business? Today’s breweries and distilleries have access to traditional financing as well as several alternative or lesser-known funding opportunities.

Bank Loans and SBA Loans

Conventional options such as bank loans and SBA loans present one avenue for financing your business’s growth. Beyond traditional bank loans and lines of credit, many banks (and other financial institutions) offer SBA loans to small businesses seeking funding. The Small Business Administration (SBA) guarantees SBA loans, encouraging lenders to participate. The 7(a) Loan Program—the SBA’s primary business loan program—is a popular option for brewers and distillers. Benefits of SBA loans include low interest rates, flexible terms, large loan amounts, and easier qualification. However, there are opportunities for breweries and distilleries to access capital beyond traditional bank and SBA loans.

NYS Linked Deposit Program

One lesser-known route for small businesses to obtain funding is through New York State’s Linked Deposit Program. The New York State Linked Deposit Program (LDP) is an economic development initiative under which eligible businesses can obtain commercial loans at an interest rate 2-3% lower than the prevailing rate, guaranteed to borrowers for a period of four years. Lending institutions include commercial banks, savings banks, savings and loan associations, credit unions, Pursuit Lending, and farm credit institutions. Eligible businesses include manufacturing firms with 500 or fewer full-time, NYS-based employees. In New York State, alcoholic beverage producers may qualify as manufacturers if they meet certain conditions, so as a brewery or distillery, you may be eligible to apply for loans under the Linked Deposit Program.

Inventory Financing

Another lesser-known financing option is inventory financing—a lending method through which businesses can use their inventory as collateral for a loan or line of credit. This method is especially beneficial for businesses that maintain large inventory levels, such as alcoholic beverage producers. The value of the inventory, which is assessed by the lender, determines the amount of the loan. Inventory financing is a way for businesses to increase cash flow while maintaining sufficient inventory levels.

Selling Inventory to Investors or Trading Firms

The last option we’ll discuss in this article involves the sale of inventory to investors or trading firms, who hold that inventory while it ages and increases in value. One such trading firm is Barrel Stock Trading Co., based out of Nashville, Tennessee. Barrel Stock Trading Co., led by company president Joe Goode, purchases whiskey barrels from distilleries, holds the barrels while the whiskey ages, and then sells them to investment partners or brands. This alternative investment strategy is not only a unique opportunity for investors, but is also an opportunity for alcoholic beverage producers to acquire immediate capital without having to wait for their inventory to age.

How Can We Help?

Above are just a few of the financing options available to breweries and distilleries looking to grow and improve their business. While you explore financing options for your brewery or distillery, you can count on RBT CPAs for all of your business’s accounting, tax, audit, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.

Over thirty different permits are available through the New York State Liquor Authority (SLA) for various purposes, including special events, transportation, and marketing. Applications for some of these permits can be completed online, while others must be mailed in. Each permit bears its own stipulations and conditions. This article will highlight some of the most popular permits issued the by the NYS Liquor Authority along with their provisions.

Following are three popular permits that are available online. To apply for online permits, you will need to log in to or create a NY.gov account.

One-Day Alcohol Event Permit

This permit, also known as the Temporary Alcohol permit, allows the sale and service of alcoholic beverages for consumption at an event for a period of 24 hours. The fee for the One-Day Alcohol Event Permit is $36 per point of sale, per day. Both licensees and members of the public can apply for this permit.

Caveats: Alcoholic beverages sold by the permit-holder must be consumed within the licensed area only. Under the ABC Law, no more than four permits may be issued for one location within a 12-month period (with the exception of certain Not-for-Profits). However, the NYS Liquor Authority may consider additional permits if provided with a letter of no objection by the municipality and police department.

Apply for the One-Day Alcohol Event Permit here.

Catering Permit

This one-day permit (valid for 24 hours) allows currently licensed on-premises retailers to provide alcohol at certain private events located off-premises. The applicant must provide food in addition to alcohol. The fee for the Catering Permit is $48 per point of sale, per day. Only active on-premises retail licensees can apply for this permit.

Caveats: The application for this permit must be submitted at least 15 business days prior to the event. Applicants cannot cater for themselves (they must be hired by a third party to cater the event). The food provided must meet the requirements of the ABC law.

Apply for a Catering Permit here.

Marketing Permit

The NYS Liquor Authority website states the following regarding the Marketing Permit:

A Marketing Permit authorizes a licensed manufacturer or wholesaler, or an unlicensed out-of-state supplier, or a licensed in-state supplier to:

• Conduct tastings and provide samples of the permit holders’ products to consumers;
• Accept orders from licensed retailers on behalf of a wholesaler licensed in NYS authorized to sell such products at wholesale; and
• Sell their products by the bottle to consumers during tastings

A Marketing Permit can be used at the following events/locations:

• An establishment licensed to sell at retail the alcoholic beverages that will be tasted (i.e. liquor store, bar, restaurant);
• The State Fair, recognized county fairs and farmers markets operated on a not-for-profit basis; and
• Outdoor and indoor gatherings, functions, occasions or events sponsored by a bona fide charitable organization

One-Time Tasting Permits cost $25, and Three-Year Tasting Permits cost $395.

Caveats: To use a Marketing permit for events not listed above, you must contact the Liquor Authority at least 15 days prior to the event to receive permission. The supplier or wholesaler cannot charge a fee to consumers attending the event. Samples cannot exceed 3 ounces for beer, wine products, and cider, 2 ounces for wine, and 1/4 ounce for liquor. Liquor and wine sold by the bottle must be price posted. The supplier must obtain a Transportation Permit to transport alcoholic beverages to the event location (or use a company with a Transportation Permit). Manufacturers may use a company-owned car.

Apply for a One-time Tasting Permit here.

Apply for a Three-year Tasting Permit here.

Other Permits

Many other permits are available online, including Bottling Permits, Brewer Tasting Permits, Trucking Permits, and Warehouse Permits, to name a few. A complete list of online permits, along with their descriptions and fees, can be found here. Some permits are not available online, including the Temporary Operating Permit, the Liquidator’s Permit, the Solicitor Permit, the Sunday On-Premises Sales Permit, the Wine/Liquor Auction Permit, and others. Applications for these permits must be printed, completed manually, and mailed to the New York State Liquor Authority. Visit this page to see a full list of these permits and to download applications.

Contact Us

While you focus on permit applications for your business, you can depend on RBT CPAs to focus on your business’ accounting, advisory, audit, and tax needs. Give us a call today to find out how we can be Remarkably Better Together.

Is your business making the most of tax benefits this year? As annual tax deadlines approach, consider the following credits and deductions available to breweries and distilleries in New York State.

1. Section 179 and Bonus Depreciation

 Section 179 allows business owners to deduct the full cost of tangible property placed into service during the tax year. Eligible property includes machinery, equipment, certain vehicles, computers, software, and more. For a full list of eligible property, see IRS publication 946. For tax years beginning in 2024, the maximum expense deduction businesses can take is $1,220,000. This limit decreases when more than $3,050,000 worth of Section 179 property is placed into service during the tax year.

Bonus depreciation is another immediate expense deduction available to brewers and distillers. Bonus depreciation allows business owners to deduct a percentage of the cost of newly acquired property. The bonus depreciation rate for 2024 is 60 percent for certain qualified property. Note: Beginning in 2022, bonus depreciation percentages began decreasing as the incentive started phasing out. The rate will continue to go down by 20 percent each year until 2027 when the phase-out will be complete.

Combining Section 179 and bonus depreciation can result in significant tax savings for business owners. If you plan to utilize both benefits, keep in mind that Section 179 must be applied first.

2. Alcoholic Beverage Production Tax Credit

 Registered distributors who produce beer, cider, wine, or liquor in New York are eligible for the Alcoholic Beverage Production Tax Credit if, during the tax year, they produced a maximum of 60 million gallons of beer or cider; 20 million gallons of wine; or 800,000 gallons of liquor.

For the first 500,000 gallons produced in the state, the tax credit equals:

• 14 cents per gallon of beer or cider
• 30 cents per gallon of wine
• $2.54 per gallon of liquor with alcohol by volume (ABV) between 2% and 24%
• $6.44 per gallon of liquor with an ABV above 24%

For amounts in excess of 500,000 gallons, the credit equals 4.5 cents per gallon up to 15 million additional gallons of beer, cider, or wine and up to 300,000 additional gallons of liquor. During an audit, you may be required to prove entitlement to the tax credit by providing copies of various forms (click here for a list.)

Please note that this credit is taxable. For more information, check out our article on the taxability of the NYS Alcohol Production Tax Credit.

3. Tipped Employee Credits

FICA Tip Credit

If you employ food and beverage service workers who customarily earn tips and you pay Social Security and Medicare taxes on those tips, you may be eligible to credit a portion of what you pay against your business income taxes. Recordkeeping requirements apply.

New York Tip Credit

If you employ food and beverage service workers who earn at least $30 a month in tips, a portion of those tips may be used to satisfy your minimum wage obligation. When taking this credit, recordkeeping and reporting requirements apply. More information on the NYS Tip Credit can be found here.

Conclusion

Don’t miss out on opportunities to maximize your tax benefits this year. These credits and deductions can save you money on taxes, and capital which can then be used to reinvest in your business. For more information on tax benefits available to your business, contact our experts at RBT CPAs. Our firm is here to support your business’s accounting, advisory, tax, and audit needs. Give us a call today to find out how we can be Remarkably Better Together.