Hiring a part time finance controller for a brewery

Bookkeeper, accountant and controller are different jobs

A bookkeeper records transactions: invoices, bills and bank entries. An accountant, often an outside firm, files tax returns and prepares year end accounts. A finance controller sits between the two and the owner. The controller checks the books are right each month, builds the management accounts and tells you what the numbers mean for next month.

Many small breweries have the first two and miss the third. They know their GST was filed but not why cash is tight in a month when sales went up.

Signs you need one

You probably need a controller when two or more of these are true:

• You cannot say your cost per litre for each beer within a few rupees.
• Month end accounts arrive six weeks late, or not at all.
• Cash surprises you, in either direction.
• You are planning a loan, an investor round or a second site.
• Excise, GST and payroll deadlines are being met by luck.
• The owner spends weekends on spreadsheets instead of selling beer.

A brewery with several trade accounts, a taproom and packaged sales has enough moving parts for this to arrive early.

What the role does each month

Write the scope down before you hire. A sensible monthly routine for a controller working three to five days a month looks like this:

1. Close the books within about ten working days of month end, with bank and debtor reconciliations.
2. Produce a one page management report: sales by channel, gross margin by beer, overheads, cash and debtors.
3. Update the cash flow forecast for the next twelve weeks.
4. Check compliance deadlines for GST, TDS, payroll and state excise returns, working with your accountant.
5. Flag anything odd, such as a rise in malt cost per batch or a trade account that has stopped paying.

Ask for the same report in the same format every month. The value is in the trend, not in a single month.

Here is a sum the report should make easy. Say a 1,000 litre batch of pale ale costs ₹45,000 in malt, hops, yeast, water and energy. Say 880 litres reach the customer after brewhouse, cellar and packaging losses. Raw cost is about ₹51 a litre, not ₹45. If losses creep up to 200 litres, the same batch costs over ₹56 a litre. A controller who tracks litres sold against litres brewed catches that drift months before it shows up in the annual accounts.

Make sure they understand beer costs

Brewery costing has quirks that a general accountant can miss. Malt, hops, yeast and packaging are only part of it. Losses in the brewhouse and cellar, the value of beer sitting in tanks and excise duty that may be paid before the beer is sold all affect margin. Duty rules differ by state, so the controller needs to know how yours work.

A good controller will want to walk the brewery. If a candidate is not curious about how many litres go into a fermenter and how many come out as saleable beer, they will struggle to value stock correctly. Our guide to writing a brewery business plan shows the cost lines a controller should be tracking against.

Finding and hiring the right person

Part time controllers are often chartered accountants or cost accountants with experience in manufacturing, food or hospitality. Some work freelance across several small firms. Others come through an accounting practice.

Ask each candidate to walk you through how they would value work in progress in a manufacturing business. Ask what their first month report would look like. Request a sample they have built before, with the figures hidden. Check references with owners of similar sized businesses.

Agree access and controls in writing: who approves payments, who can see payroll and what the controller can sign. Separation of duties matters even in a team of ten. The person who records payments should not be the only one approving them.

Brief them properly in the first month

A controller is only as good as the information you give them. In the first month, hand over the chart of accounts, bank access, the last year's accounts, your price list, supplier terms, batch records and your excise filings. Walk them through a brew day and a delivery run.

Then sit down together with the first report. Ask what surprised them. A fresh pair of eyes on the numbers often finds a beer that loses money or a customer who pays in 90 days while you pay suppliers in 30.

The owner still has to understand the report well enough to act on it. Reading a margin by beer table and a cash forecast is a skill worth learning yourself, even with good help.

Your first step

Write down the five numbers you wish you knew every month, such as margin per beer or cash in twelve weeks. That list becomes the job description and the first question you ask every candidate.

Common questions

What is the difference between a bookkeeper and a finance controller?

A bookkeeper records transactions. A controller checks those records each month, builds management accounts and explains what the numbers mean for decisions.

How many days a month does a small brewery controller need?

Often three to five days a month is enough for a small brewery, rising around a loan, investment or new site.

Does a brewery finance controller need brewing knowledge?

They need to understand how beer is costed: losses, stock in tanks and how excise works in your state. A good one will want to walk the brewery.