Tag Archive: Wine Industry

Bookkeeping in Wineries

Bookkeeping is an essential part of any and every business that you can think of. Whether it is the healthcare sector or the mining sector, knowing just how much money you’re pouring into the business and knowing how much you’re profiting from it is a crucial math that makes a major difference in the lives of the owners as well as the lives of all the employees working in the business. Additionally, a business also needs to know just how much money it’s giving to its employees. Not only does that help during the tax season, but it also ensures that the employees are satisfied.

Importance of bookkeeping

Just like any other business sector out there, bookkeeping is of utmost importance in wineries as well, since vineyards operate in the same way as any other business sector in the world does, and they too, operate on the principles of profit and loss. However, it is true that they’re not quite as similar to other business sectors in the direct sense, since the fermentation of the wine and the grape harvesting are not something that other sectors have to deal with.

That said, the importance of bookkeeping isn’t diminished no matter what. Not only are bookkeepers able to manage finances better than the average company owner, but they also take the responsibility off of the owner’s shoulders, as they have a huge burden on their shoulders anyway. That way owners will be able to relax knowing that at least one of the important tasks have been taken care of.

Bookkeeping in Wineries

Another extremely important function that they fulfil is tax obligations, which is, perhaps, one of their most important functions aside from just keeping track of all the profits and losses. In a winery, if all the proper documentations aren’t properly looked after and filled in, it could easily lead to the company having to pay hefty fines, which could cost them dearly. In extreme cases, improper record keeping can also lead to bankruptcy, since this is something that is required by the law.

Bookkeeping will make the company run a lot more smoothly, as it will give the owners easy access to the profit and loss sheets as well as the balance sheet to find out if the company is on the right track or not. This simplifies the whole process and a business will easily be able to steer directions or adjust their strategy if they realize that their current tactics are doing them more harm than good.

One can either opt for in house bookkeeping or outsource the service. The first thing that a company will need to consider is its size. If it’s a small company with only a few employees, having an in house bookkeeper would be better than outsourcing the service. However, for a bigger company with hundreds or thousands of employees, outsource to a bookkeeper Melbourne, as they will be able to handle all your bookkeeping needs and ensure that your winery runs smoothly.

To learn more about the importance of bookkeeping, read http://www.bmgaccountants.com.au/top-reasons-why-bookkeeping-is-important/

Invest Your SMSF in Wine

Everyone has worried about what will become of their lives once they have retired at some point in their lives. As worrying as that may be, it doesn’t necessarily need to be a negative thing. If you’re worried about your pension or dissatisfied about the lack of control that you have over it, then you can always opt for self managed superannuation funds, as that will allow you to have full control over your investment powers and give you the freedom to invest in whatever you wish, even if you wish to invest in works of art, collectibles, or wine.

Invest Your SMSF in Wine

Investing in wine

Yes, your SMSF does allow you to invest in wine, however, you will need to strictly adhere to specific rules if you really truly want to invest in it. Unfortunately the biggest rule of them all is that you can’t drink the wine. As sad as it may be, it’s true, since you will be selling the wine off later on once it has increased some more in value anyway.

Another big no-no is buying the collection of wine from another party within the fund, in other words, any of the trustees. You’re not allowed to purchase the wine or collectible or artwork, or anything as such, from any of the trustees. That said, since the main aim of the fund is to save money for the retirement fund, one also needs to ensure that the wine investment is part of the investment strategy that you outlined in the trust’s deed.

Additionally, both you and your investment partners, or rather, trustees, need to show that they have all done adequate research on the wine’s investment potential and are knowledgeable about it. Also, you need to show why it was a good idea to invest in that particular wine and not anything else. This also goes for any other type of investment that might be similar to investing in wine, such as collectibles and antiques.

A few other rules that you will also need to adhere by include: not storing the wine or the wine collection in your own house or property, or the property of any of the other trustees or anyone related to them; not leasing the wine to any of the trustees or anyone related to them; the party members or anyone related to them aren’t allowed to drink the wine; when deciding on where to store the wine, the reasons for why you decided to store it where you did should be stated; and the asset should be insured within a week of its acquisition.

The rules were made stricter this year, but all for a good reason, as it will ensure that the money in your fund is used solely for retirement purposes and nothing else. These are just general guidelines and are by no means meant for every investor planning on investing in wine. Depending on the circumstances and investment objectives, the rules may differ.

For more information on SMSF wine investment rules, read https://switzersuperreport.com.au/smsf/can-my-smsf-really-invest-in-wine/