EOFY SOFY

EOFY / SOFY and Beer30: Accounts Slayable

May 9, 2024

Hey mates, it’s that time of year again in Australia, the End of the Fiscal year is upon us. That means it’s time to bust out the log books and make sure your accounts are in order, regulations are being met, and start your financial planning for next year. 

And we know that this sounds about as fun as watching paint dry BUT while they may not be the most exciting part of running a brewery, the end-of-year financials are an incredibly important part of getting your brewery off to a good start for the year. Running End-of-year financials is vital in ensuring products are priced accurately, your profits are healthy, and to help you forecast what resources you’ll need in the coming year. 

Fortunately, Beer30 brewery software can help with all of this and more to make EOFY / SOFY a breeze so that you can get back to doing what you love and brewing more beer. 

The Weather Outside is Frightful (But it Doesn’t Have To Be)

Ok ok, let’s talk about the elephant in the room real quick. Before delving into the role of brewery software in EOFY / SOFY preparations, it's essential to acknowledge the tumultuous climate the industry has faced for the last couple of years. From microbreweries to large-scale operations, individuals at every level are being affected by challenges including:

  1. Market Volatility: Shifting consumer preferences, influenced by factors like health trends, cultural shifts, and economic fluctuations, pose a constant challenge for breweries striving to maintain relevance and profitability.
  2. Regulatory Compliance: Navigating the maze of regulations, including licensing requirements, taxation, and labeling standards, demands meticulous attention to detail and compliance measures.
  3. Supply Chain Disruptions and Rising Cost of Materials: The pandemic-induced disruptions highlighted vulnerabilities in global supply chains, affecting everything from raw materials procurement to distribution logistics, impacting production timelines and profitability.

There’s no denying that the industry has seen some shit stuff recently, but that doesn’t mean success is out of reach. In fact, we wrote a whole blog post exploring different ways your brewery can thrive in 2024. 

So you might be thinking, “With all of these difficulties, now isn’t the time to learn a new software.” Well, Reginald, we disagree. While we understand that implementing a new software may seem daunting, with an experienced support team that actually has your best interest in mind, learning can be a breeze. Plus, once you’re using Beer30, the benefits will speak for themselves. 

In fact, all of the challenges listed above are made so much easier with Beer30 software. Beer30 helps you manage and monitor your Cost of Goods Sold, makes regulatory compliance easy, and tracks all of your raw materials and lets you know when you need to be ordering more.

Now that we’re on the same page, let’s talk about how Beer30 can help specifically with EOFY / SOFY planning.

Financial Planning and Inventory Management

Planning for the future means making sure your finances and inventory are organized in a way that will make things nice and pretty to analyze when you look back at EOFY next year. For many breweries, this means compiling expenses and keeping track of inventory with spreadsheets or Google Sheets. While this works, the process is time-consuming, tedious, and extremely prone to errors. Calculating revenue, expenses, and inventory becomes a messy task when things are scattered across multiple spreadsheets – something that can be dangerous for calculating your bottom line.

With Beer30, all of your finances and your inventory are organized for the year to come. The software integrates directly with Quickbooks Online and Xero so that all of your financial data will be transferred directly to your accounting software. It also helps you keep track of brewing ingredients, packaging materials, work-in-process products, and tank inventory in real-time. 

Our software eliminates the frustration and mistakes that come with entering data manually and reduces the risk of duplicating data. 

Material Resource Planning (MRP) for Efficiency

With your finances in order for the end of the financial year, and your inventory and stocktake completed, now it’s time to get ready for SOFY. This means calculating the inventory you’ll need and when you will need it. For many brewers, this means looking over their on-hand materials & supplies, and then making an educated guess on how much to order based on the recipes they want to brew. 

While some consider guesstimating a foolproof methodology (60% of the time, it works every time), the majority of us know that it's rarely an ideal business practice. Beer30’s Material Resource Planning (MRP) feature takes the guesswork out of supplies and raw materials ordering by telling you what you'll need to meet your production goals.

MRP works by taking a brewery’s current inventory, all planned purchase orders, and all planned production, then based on the recipes for planned production, it automatically calculates future inventory for all raw materials and packaging items. From there, it creates suggested purchase orders based on item lead times.

MRP is crucial because it prevents running out of raw materials or packaging supplies, avoiding income loss and potential damage to brand reputation. Poor planning can lead to increased shipping costs and inconsistencies in batches, affecting product quality and customer trust. 

Beer30’s MRP feature seamlessly integrates with your production schedule, accurately tracking inventory, providing suggestive ordering, and tracking recipes. By streamlining material resource planning, Beer30 helps breweries improve efficiency and avoid costly mistakes without all the guessing.

Demand Planning

Hand in hand with Material Resource Planning is Demand Planning. Demand planning is a crucial next step when figuring out your brewery’s financial future and is vitally important for the start of the financial year. Fortunately for Beer30 users, the Demand Planning module revolutionizes the coordination between Sales, Purchasing, and Production. This module brings improved visibility into materials, production timelines, and sales forecasts, enabling optimized production planning. 

The Demand Planning Module automatically feeds the estimated production schedule into MRP. This means that it tells a brewery what materials & supplies they need to order and when they need to order them to meet their Forecasted Sales!

This automation helps streamline operations with a “Just In Time” or JIT approach. This helps to make sure there’s enough stock to produce only what you need when you need it. The goal is to achieve high-volume production with minimal inventory on hand and eliminate waste – saving you money on both materials and labor.

The module’s sales forecasting capabilities help answer crucial questions about sales volume, packaging requirements, and product demand to get you geared up and ready for the start of the financial year. 

Conclusion

EOFY / SOFY is approaching quickly in the Australian market, and it’s important to get all of your finances in order. With Beer30 software, financial planning, inventory management, and forecasting are all just a few clicks away. 

Despite the recent challenges in the brewing industry, Beer30 can help streamline your production and ensure that your bookkeeping is on point and free of errors. All of this will help you improve your bottom line, assist with local compliance, and make getting through your end-of-year financials less of a headache. 

If you’re interested in learning more, reach out to book a demo today, and let’s talk about how Beer30 software can help your brewery thrive. 

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