If your winery financials feel confusing or useless, it's probably not you — it's the system. In this video I walk through the three most common reasons small winery financials break down: messy reports that nobody looks at, incomplete cost numbers that create false confidence, and the cash vs. profit confusion that makes owners think something is wrong when it isn't.

The wine industry has been contracting for years. Tasting room traffic is down. Wine clubs are stalling. Wineries are closing. If your financial system isn't built for this, here's what to fix first.

You probably know at least one winery that has closed in the last year or two.

Maybe more than one.

That's not a coincidence. That's a contracting industry — and the wineries that are surviving are the ones that can see their numbers clearly enough to make fast, smart decisions when it counts.

So here's the question: can you actually trust your financial numbers?

Not "do you have reports." Everyone has reports. The question is whether your reports are telling you something real — something you can act on. Or whether you open QuickBooks, look at the screen, and feel a vague sense of unease because something feels off but you can't quite put your finger on it.

If it's the latter, this is not a "you" problem. It's a system problem.

Winery bookkeeping isn't like normal bookkeeping. You're managing inventory that moves between bulk and bottle. Sales come through multiple channels — tasting room, wine club, online, wholesale — and those channels are all performing differently right now. You've got POS systems that don't always sync properly, samples and pours that need to be tracked, and wine club shipments that have to land in the right place in your system. None of that fits neatly into a generic QuickBooks setup.

Generic QuickBooks was built for generic businesses. A winery is not a generic business.

So what usually happens? You try to do it yourself and get frustrated. Or you hand it off and lose visibility. Or you end up with a system that technically functions but doesn't actually help you make decisions. You know the numbers are there — you just can't fully trust them.

In a stable, growing industry, that's a headache. In a contracting one, it's dangerous.

When your financial system isn't giving you clear answers, you can't price with confidence. You can't identify which channels are actually profitable. You can't see the problems coming early enough to do something about them. And when every dollar matters more than it did two years ago, operating with blurry numbers is a risk you can't afford.

The fix isn't to try harder. It's to build the right system — one designed around how a winery actually operates.

VIDEO: Three Things Wrong With Your Financials

What this video covers:

• Why a standard QuickBooks setup doesn't work for wineries

• The 3 most common ways winery owners end up with numbers they can't trust

• The first thing to look at when your books feel more confusing than helpful

That's exactly what the Fundamental Five is built around — a winery-specific system for getting your financial foundation right in QuickBooks. Not more complexity. Just the right structure for how your winery actually works.

The industry is harder than it's been in a long time. The wineries that make it through are going to be the ones who can see clearly. Our next cohort starts May 28th.

Messy reports, incomplete costs, cash confusion — if any of those hit close to home, this webinar is for you. Join me for Why Your Numbers Aren’t Helping You Make Better Decisions, a free training where I show you the exact steps to build a financial foundation your winery can actually grow from. Save your spot below.

30% of Wineries Won’t Survive - Will You? 

In today’s challenging business climate, many small winery owners are cutting back wherever they can. But when it comes to marketing, the stakes are high: cut too much, and you risk losing momentum. Spend without a plan, and you may as well be tossing cash into the vineyard wind.

Too often, I see owners relying on what I call “hope marketing.” They send out an ad, launch a promotion, or host an event—and hope it brings in more customers or wine club signups.

It’s a bit like planting a vineyard without knowing your soil, climate, or varietals. You spend the money, put in the work, and pray for a great harvest… but you’re not set up for consistent success.

And then there’s the temptation to copy what big wineries are doing, thinking it must be the “right way” to market. So they hire an expensive marketing consultant—one who’s used to working with large companies—and end up hearing nothing but crickets. It’s like planting Cabernet in a region better suited for Pinot Noir: just because it worked for someone else doesn’t mean it will thrive in your unique conditions.

The good news? As a small winery, you actually have an advantage the big players don’t: you’re nimble. You’re closer to your customers. You can test and tweak your marketing on a small scale without wading through layers of approval or bureaucracy.

So how do you use that advantage wisely? Start with a simple, clear marketing strategy.

Four Questions to Build a Smarter Marketing Plan

Think of your marketing like tending your vineyard—each activity should have a purpose, be tracked, and improved over time. Ask yourself:

1. How much will this program or project cost?

2. What’s my expectation? Am I aiming for more tasting room visitors, wine club signups, or something else?

3. How will I measure it? What numbers will tell me if it worked?

4. How can I tweak this to improve next time?

This doesn’t require fancy software or complex dashboards. Think of it like checking your fermentation: you don’t need a lab full of scientists—you just need a hydrometer and regular tasting to stay on track.

Tracking Sales: Your Financial System as a Marketing Tool

Here’s where your financial system can help you make smarter marketing decisions.

One of the Fundamental Five steps in our QuickBooks system is tracking sales by “class.” Many wineries only track two: Distribution and DTC (Direct-to-Consumer). But lumping all your DTC sales into one category is like saying “red wine” without specifying Cabernet, Pinot Noir, or Zinfandel—you lose important detail.

Instead, create sub-classes for each DTC channel: tasting room, online store, wine club, events, farmers markets, etc. That way, you can see clearly which efforts are paying off and where you might need to prune your efforts.

I worked with a winery that broke down their DTC sales like this for the first time. They discovered their local farmers market booth—something they thought of as a “side project”—was outperforming their online store. With that insight, they shifted resources and doubled their wine club signups in one season.

Small Winery, Big Advantage

The beauty of being small is that you can try things on a modest scale, track your results, and adjust quickly. Large wineries might need a year to change course. You can do it in a month.

But here’s the catch: to make smart decisions, you need good data. That’s why tracking and reviewing your results is so crucial.

It’s like winemaking—tasting at every stage helps you adjust before the wine goes into the bottle. Marketing is no different.

Ready to Get Smarter About Your Marketing?

Your financial system can do more than track expenses—it can help you understand what’s working, what’s not, and where to focus your energy.

Want to see how your winery’s numbers can guide smarter decisions? Our Fundamental Five system shows you how to turn your financial data into a marketing advantage - without spreadsheets or guesswork.

Because hope is not a strategy—but a smart, simple plan can get you real results.

Written by Jeanette Tan 

Running a winery is a labor of love, but managing finances shouldn’t feel overwhelming. With tools like QuickBooks, small wineries can streamline operations and boost profitability. I know that you love your excel spreadsheets, but consolidating that information in one place gives you a more powerful tool. Here’s how:

Balance Costs and Pricing with Ease

QuickBooks tracks every expense, from bottling to labeling, while managing inventory and tracking sales details.

• Monitor inventory: Stay on top of costs at every stage of winemaking.

• Forecast revenue: Use reports to prepare for seasonal fluctuations.

• Control costs: Budget effectively and compare your actuals versus the plan.

These details help you ensure that your pricing will keep your winery profitable.

Automate Accounting Tasks

Save time on everyday tasks using apps that integrate with QuickBooks desktop and online:

• Sync sales data from tasting rooms and online stores.

• Streamline bill paying and managing accounts payable

• Email invoices and receive EFT payments from distribution and wholesale or customers.

Automation means fewer errors and more time to focus on that stuck fermentation.

Why QuickBooks Works for Wineries

QuickBooks offers customizable reports, scalability, and cloud access. Its integrations with tools and apps simplify workflows. It's easy for non-accounting professionals (and the Reluctant Bookkeeper) to use. QuickBooks works well for wineries:

• Track cased goods by SKU.

• Deep dive into sales metrics

• Gain insights into cash flow and profitability.

Invest in QuickBooks to simplify your finances and spend more time doing what you love—making great wine.

Our Fundamental Five course shows you step-by-step how to set up QuickBooks for a small winery. Check it out here.

The "Three Steps to a Financially Healthy Winery" webinar is designed for winery owners, managers, and anyone responsible for the financial health of their winery. Whether you're an owner juggling multiple roles, a manager tasked with overseeing finances, or simply someone looking to improve your understanding of winery financials, this webinar is for you.

Join us to learn how to:

• Maintain clean and accurate financial records using QuickBooks

• Understand the true costs of your wine production to make informed pricing decisions

• Leverage financial insights for strategic growth and long-term success

This webinar provides practical tips, tools, and guidance to help you build a solid financial foundation for your winery.

Register here:https://www.qbwinerysolutions.com/financiallyhealthywinery

Date and Time: Tuesday, October 29, 11:30 am PST | Instructor: Jeanette Tan | Duration: 45 minutes | Format: Live Webinar with Q&A | Cost: FREE | Replay Available 

1. Get your financial file in order

Be honest (we won’t judge!), do you file the financials away without looking at them because they are confusing? You are not alone! Without a clean and clear organization, your reports are impossible to understand, so when you need to make important business decisions, they are not at all useful. 

Get your accounting file and financial procedures in order with our system The Fundamental Five!

2. Calculate your True Cost

If you ask your tax accountant, if the “cost” they calculated for your wine is “tax cost” or “true cost”., they likely told you “tax cost”. (which is what you want to file your taxes). 

But did you know that Tax Cost is lower than True Cost, so If you price your wine based on Tax Cost, you could be making a fatal mistake. 

We help you calculate your True Cost, empowering you to make informed financial decisions in your winery.

3. Plan a path to growth and profitability

Congratulations! Your books are in order, and your costing is accurate.  Now it’s time to have some fun forecasting your cash needs, analyzing your activities, and planning a path for growth and profitability. 

Every business needs a CFO, but a small winery doesn’t need one full-time. We have a range of Outsourced CFO Services suitable for 50 case and up to 20,000 case wineries. 

Let us find the right support for you!

CalRecycle anticipates bringing 1 billion bottles into the recycling program with the addition of wine and spirits. Amy Cameron, CalRecycle

Only beverage containers that are sold DTC and to restaurants or transferred in California plus some promotional items & samples must be reported

If your QuickBooks file is set up using our Fundamental Five system, this report will be straightforward, with a little help from your eCommerce program. And if you took our Sales Tax Mini-Course, then you already know the key concepts to calculate the container count.

Keep in mind that the regulations state that you must maintain records of all containers purchased, filled, and disposed of. If you are audited, you will be required to reconcile the containers that you purchased with the number that you reported. That means that you also need to know how many bottles were shipped out of state and shipped to distributors and wholesale accounts.

We feel this is a good reason to set up your file using our Fundamental Five system. In our system, you use QuickBooks to compile all of the sales made in your various programs. This means that you will be tracking your inventory in QuickBooks. In addition to reconciling the bank account, you will also reconcile the cased goods inventory amount. When you set up your classes to show the various sales channels, you can easily identify the re-sale sales from the DTC sales. The fifth step in our Fundamental Five system is to record all of the samples and tasting room pours. This is often a missing step in keeping the inventory accurate.

UPDATING YOUR LABELS

If you implement the CRV program effectively, the program will only cost you 10 cents for each of your samples and other non-sale depletions. However, if you bottle wines in 2024 and the labels do not have the CRV message, you will need to add a sticker to show the correct CRV redemption information. Wines bottled before January 1, 2024, are exempt from the label rule.

You have until July 1, 2025, to implement the label portion of the program. 

You will save a lot of money if you can get the CRV message on all of your 2024 bottle runs.

If you need any help, check with your compliance team or call CalRecycle. They have been running this program for over 20 years, so they are familiar with the procedures.

Beginning August 1, 2024 new QB Premier Licenses will NOT be sold.

Intuit announced that they will no longer be selling NEW licenses to QuickBooks Desktop Premier. What this means for you:

• By July 2024 you must be using a Subscription version NOT the CD/Standalone version

• Beginning August 1st, 2024 only QB Enterprise will be sold for Desktop users

The annual subscription rate for QB Desktop Premier is $949. QB Enterprise Silver (which is the basic version) is $1,128 per user when purchased through your friendly ProAdvisor. So, Intuit is phasing out QB Desktop Premier and replacing it with QB Enterprise.

Of course, Intuit is trying to force everyone to migrate to QB Online. However QB Online Plus (which is the version with Inventory and budgets) is $1,080 for 1 to 5 users so it is not necessarily a lower cost option. As I have discussed in previous blog posts, QB Online is not powerful enough for a winery with over about 3,000 case annual production. Read the Blog Post