Why a solid back office financial application is vital to your winery’s success
In the back office of every business are the typical accounting and financial tasks like payables, receivables, bank reconciliation and financial reporting. As a winemaker, these functions are likely not your passion, but in order to fuel your passion, you must pay the bills and collect the cash, and back office accounting is the way to get it done. And while it might not be as much fun as making wine, it is every bit as important to your success.
A well-designed core financial system is an essential part of running a profitable and efficient winery business. It provides a strong platform for every business activity, streamlines the basic tasks required of every company, and delivers value-added functionality as part of a comprehensive winery ERP solution. In our continuing series covering The Six Must-Haves in a Winery’s ERP System, we highlight the importance of a strong back-office financial system.
Beyond the basics
When we refer to a strong financial accounting application, we’re referring to much more than the ability to complete payables and receivables tasks and print a financial statement. A strong financial application helps form the foundation for every aspect of your operations.
In addition to providing you with an accurate, real-time understanding of your financial position, your back office accounting software can and should provide tools and insight to help you run an efficient and profitable business, and the scalability and flexibility necessary to support you as you grow. You should consider the software’s ability to help you:
- Gain anytime, anywhere access to your data
- Understand which products are profitable, and which are not
- Gain insight into the actual cost of production, helping you make strategic planning and pricing decisions
- Get paid more quickly with the ability to process credit cards
- Flexibly pay vendors through EFT
- Collect and track the data necessary for industry compliance
- Manage multiple legal entities – across companies, currencies and international borders
- Produce meaningful, insightful reports that support strategic decision making
- Gain insight into your customers’ buying patterns
- Efficiently process payroll
Avoid growing pains
Young, growing wineries may be tempted to purchase entry-level accounting software, to avoid the higher cost and perceived complexities of a full ERP solution. But these starter packages lack the robust controls required for compliance, the full-functionality needed to manage inventory, an integrated customer relationship management (CRM) component, e-commerce integration, and the comprehensive costing capabilities associated with true ERP software. Wineries using entry-level applications typically supplement the software’s shortcomings by maintaining spreadsheets or incorporating separate, disparate programs – depriving them of the efficiencies that promote lean operations.
When all goes well, young growing wineries become established growing wineries – expanding into new markets, introducing new products, enticing a loyal following, and increasing production and profitability. It makes smart sense to start with an efficient financial foundation that can scale with you from the start, supporting and facilitating your growth from the ground up.
Integration creates the right balance
By definition, ERP solutions are a set of integrated business management applications that help companies collect, store, manage and analyze data from across all (or at least most) of their business activities and functions. As you shop for the right ERP for your winery business, you’ll want to ensure the solution you choose addresses the unique challenges of the winery industry, including:
- Production tracking and costing
- Inventory and warehouse management
- Point of sale
- Wine club management
- Financial accounting
- Integrated payroll
- Business intelligence and reporting
A strong back office accounting solution is an indispensable component to the success of your winery business. Just like the proper balance of elements in your wine, a connected winery ERP application works in harmony to produce the highest yield and best results.
Caron Winery Solution is a comprehensive, powerful and easy-to-use winery ERP solution, built on Sage 300, that addresses the challenges wineries face. Learn more about Caron Winery Solution here, or by contacting us here.