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Accounting for Breweries #380126

Course Overview

Credit

Amount

CPA

Course Author: Steven M. Bragg, CPA Field of Study (CPA): Accounting

Course Description

Course publication/revision date: This course was updated on 5/13/2026.

The operations of a brewery present several unique issues for the accountant, especially in regard to beer costs and taproom operations. In the Accounting for Breweries course, we delve into how to create a brewery-specific chart of accounts, derive the cost of beer, issue profitability reports and financial statements, and account for numerous brewery-specific issues, while also touching upon a number of budgeting, reporting, and profitability enhancement topics.

Table of Contents

Accounting for Breweries1

Introduction	1
Brewing Essentials	1
The Accrual Basis of Accounting	1
The Cash Basis of Accounting	2
The Chart of Accounts	3
Taproom and Merchandise Profitability Reporting	6
The Cost of Goods Sold	7
Cost of Goods Sold Components	7
Cost of Goods Sold Best Practices	9
The Periodic Inventory System	10
The Perpetual Inventory System	11
Inventory	11
Administrative and Marketing Costs	12
Brewery Fixed Assets	13
Depreciation	13
Keg Deposits	15
Gift Cards	16
Beer Excise Taxes	17
Beer Sales Taxes	17
Budgetary Needs	17
Sales Variability	18
Cost of Goods Sold Variability	18
Marketing Spend	18
Production Losses and Variability	18
Capacity	18
Modeling of Upgrades	19
Asset Purchases	19
Cash Flow Forecasting	19
Error Correction	19
The Cost of Beer	20
Tank Time Costing	20
Brewery Metrics	22
Periodic Reporting Obligations	23
Profitability and Cash Flow Issues	24
Financial Statements	25
Income Statement	26
Balance Sheet	28
Statement of Cash Flows	29
Disclosures	30
Summary	34
Review Questions	35

Answers to Course Questions	36
Glossary	38
Index	40

Course Details

Author: Steven M. Bragg, CPA

Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.

Publication/Revision Date: May 13, 2026

Course Exam Questions: 10 (multiple-choice)

Program Delivery Method: Self-Study

Available Formats of Course Text: Downloadable PDF, Printed/Mailed

Course Level, Prerequisites, and Advance Preparation Requirements

License	Course Level	Prerequisites	Advance Preparation Requirements
CPA	Overview	None	None

* This program is appropriate for professionals at all organizational levels.

Sponsor ID Numbers

National Registry of CPE Sponsors I.D.: 107615

State CPA Board Sponsor ID Numbers (where applicable)

Florida Division of Certified Public Accounting: 0004761

Hawaii Board of Public Accountancy: 14003

New York State Board for Public Accountancy: 002146

Ohio Accountancy Board: .51 PSR

Pennsylvania State Board of Accountancy: PX178025

Texas State Board of Public Accountancy: 009349

Learning Objectives

As a result of studying the course material, you should be able to meet the objectives listed below:

Recognize the steps employed in the production of beer.
Identify the classifications of the various accounts in a brewery chart of accounts.
Specify the accounting issues associated with each area of a brewery operation.
Recognize the various cost assignment systems used within a brewery.
Recognize the accounting policies that may be used within a brewery, and how they can impact reported results.
Recognize the characteristics of the periodic and perpetual inventory systems.
Differentiate between costs that should be charged to expense and those that can be capitalized.
Identify the proper classification of taxes that may be applied to a brewery.
Recognize the considerations to be concerned about when making investment decisions for a brewery.
Differentiate between the uses to which the various brewery metrics can be put.