8 Ways to Make Sure You Are Ready for Year-End: A Guide for Winery Owners
Year-end can be a stressful time, but with a little organization and planning, you can make it smooth and efficient. Here are the key things winery owners should focus on to wrap up the year and set themselves up for success in the new one:
1. Conduct Physical Inventory Counts
Accurate inventory is essential for both financial reporting and tax purposes.
Case Goods: Count all finished wine – whether in storage, in transit, or ready for sale.
Bulk Wine: Count wine in tanks, barrels, and other storage containers.
Packaging Materials/Bottling Supplies: Include bottles, labels, corks, capsules, and boxes you plan to use in the coming year. Do not count materials you plan to scrap or recycle.
Adjustments: If you know of any inventory losses due to shrinkage, damage, or other reasons, share the details with your accountant.
2. Count Your Cash on Hand
Take a physical count of your cash on hand as of 12/31. This will allow your accountant to reconcile your cash balance in your books.
3. Verify Payroll Information
Before year-end, make sure payroll records are accurate and complete:
Double-check any benefits or compensation given outside your payroll system. Notify your accountant if anything needs to be added.
If you're an S-Corp owner, make sure any health insurance premiums paid by the business are included on your W-2.
Ensure employee addresses are current for W-2 delivery, and determine what method you will use for delivery. Many payroll systems (e.g., Gusto) can send W-2s electronically. However, paper copies are required unless your employees have explicitly consented to electronic delivery.
4. Update your mileage logs
Check your odometer readings on any vehicles driven for business purposes and update your mileage logs. Your tax preparer will need:
Total miles driven.
Business vs. personal miles.
If tracking mileage was a pain this year, consider using a mileage-tracking app in the new year. Apps like QBO's built-in mileage tracker can simplify the process and ensure accuracy.
If you file as an S-corp or C-corp, reimburse yourself for business mileage at the IRS standard rate. While you're at it, you might want to check with your tax preparer about reimbursing yourself for any home office expenses.
5. Clean Up Your Bookkeeping
Work with your bookkeeper to:
Categorize any lingering **uncategorized transactions **and check for any personal expenses accidentally included in your business accounts.
Make sure to reconcile your bank and credit card accounts as of the end of the year and investigate any uncleared transactions to make sure they are legitimate.
Review Accounts Payable (AP) and Accounts Receivable (AR). Flag any errors or customer invoices that may be uncollectible so they can be written off.
Check your balance sheet. Have your accountant confirm that all balances are accurate. Remember, if your balance sheet isn’t correct, neither is your profit and loss statement.
6. Prepare for 1099 Filing
Ensure you’re ready to issue 1099s in January:
You should have W-9s on file for anyone you paid over $600 for services or rent this year.
7. Organize Your Tax Documents
Start gathering key documents and store them in one place (or scan them for digital storage). Share these with both your bookkeeper and tax preparer. Examples include:
Final loan statements for the year.
1099s or 1098s you receive.
Payroll tax rate updates.
8. Plan for Taxes (If You Haven’t Already)
It’s always a good idea to meet with your tax planner in the fall to identify savings opportunities. You should also make sure to review your retirement contributions and make sure you are on track. If you’re not already working with your tax pro in this way, make sure you reach out to them now and get a meeting on the calendar for next year.
—
Year-end can feel overwhelming, but taking the time to count, review, and organize now will make January much easier. If you’re unsure about any of the steps above, reach out to your bookkeeper or accountant—we’re here to help you finish the year strong!
Need support as you close out the year? Reach out—we specialize in helping wineries simplify their accounting so they can focus on what they do best: making great wine.
✨ Cheers to a successful year-end and an even better year ahead! 🍷
