These three accounting issues are among the challenges adding fuel to the fire for the wine industry.
BPM Partner Jamie Emerson-Heery recently authored an article for Wine Business Monthly on three major accounting challenges wineries are facing as we enter the third year of the Covid-19 pandemic. Many wineries with a business model built on sales to restaurants had to pivot quickly to find new revenue after the emergence of Covid, and as such, many wineries struggled to stay afloat. And even after weathering nearly two years of this pandemic, the wine industry’s immediate future is still the subject of much uncertainty, with extreme drought and unprecedented wildfires affecting outlooks.
According to Emerson-Heery, three areas where accounting issues could arise in this “post-Covid” world include the Paycheck Protection Program, interest rate swap agreements, and retail sale pivots. As wineries are showing resiliency and once again opening up tasting rooms and shops, Emerson-Heery concludes, “Exposure to these challenges can only make the wineries better prepared for any crisis in the future.”
BPM Assurance Services for Wineries
BPM understands the business challenges wineries face. With offices in the heart of Northern California wine country, BPM’s Wine / Craft Beverage Industry Group brings a uniquely local expertise to the wine community. And with the talent and resources of one of 50-largest CPA firms in the country behind us, our Assurance professionals deliver truly world-class service. From financial statement reviews and compilations to year-end audits, our services are designed to efficiently assess risk and identify areas where you are most susceptible to risk. For more about how BPM can assist with your pandemic-related accounting challenges, contact Jamie Emerson-Heery, Partner in our Assurance and Advisory Practices, today.