Introduction to the Beer Wholesaler Financial Training Program
Course Outline
Introduction to the Wholesaler Financial Training Program
- Benefits of the program
- Increase wholesaler profits and cash flows
- Stay current on the latest financial planning, implementation, and tracking techniques
- Engage staff through online video training
- Increase learning retention with easily digestible learning topics
- Improve student accountability with testing and scoring
- Take advantage of Live Q&A Sessions with the wholesaler CFO
- Course materials
- Videos with step-by-step instructions
- Download materials to support the lessons: Templates, financial models, and checklists
- Action items and assignments to put the lesson material into practice
- Quiz on the material at the end of each module to improve learning retention
- About the course instructor
- Kary Shumway, CPA, former CFO for a beer wholesaler
- Currently a partner and CFO at Wormtown Brewery in Worcester, MA
- Instructor for University of Vermont School of Craft Beer
- Author at Brewbound, Beverage Master, Craft Brewing Business
- Presenter at Craft Brewer’s Conference, National Beer Wholesalers Association Convention, State Brewer’s Guilds, Master Brewer’s Association
- How this program can transform your wholesaler business
- Implement financial planning strategies to weather the COVID-19 pandemic
- Utilize proven training methods to enable managers to take financial responsibility for their department
- Identify and correct common causes of financial errors in wholesaler financial statements
- Realize consistent, timely and accurate financial reporting using a simple monthly process
- Achieve increased profitability with financial literacy training – the ability to read and understand the financial numbers of your wholesaler business
- Overview of each Module
- Wholesaler Finances 101
- Introduction to the wholesaler chart of accounts, financial statements and month-end process and routines to ensure timely and accurate reporting
- Deep Dive into Wholesaler Financial Statements
- An in-depth look at wholesaler financial statements, with examples and illustrations of key financial metrics and ratios
- Common Wholesaler Financial Problems and How to Fix Them
- How to identify and correct issues with inventory, accounts receivable and gross profit
- Wholesaler Financial Planning and Forecasting
- The five steps to build your wholesaler financial plan, with models, examples, and tactics to train managers in financial responsibility
- Wholesaler Cash Flow Planning
- Cash flow management best practices, the main drivers of wholesaler cash flow, and scorecards to track and measure key cash ratios
Module 1: Wholesaler Finances 101
- Chart of accounts
- Common wholesaler account structures
- Best practices to create a flexible chart of accounts to enable robust financial reporting
- Template to build your own chart of accounts
- General ledger
- Practical uses to identify cost-saving opportunities
- Quick steps to read and understand the information
- Wholesaler financial reports
- Definitions, descriptions, and examples of financial statements
- Income statement
- Balance sheet
- Statement of cash flows
- Month-end financial process/procedure
- Checklist of best practices to follow
- Steps to ensure complete and accurate financial reporting
- Tools to train your team
Module 2: Deep Dive into Wholesaler Financial Statements
- Income statement, balance sheet, statement of cash flows
- Quick process to read, understand and take action on the information
- Best practices to set up the financial reports - what to include / exclude
- Templates and examples for each wholesaler financial statement
- Key Financial Metrics and Ratios
- How to identify key metrics – the most important numbers
- How to calculate ratios and use benchmarks to compare results
- Scorecard Models to measure, monitor and improve key metrics
- The World Famous One-Page Financial Statement
- All the financial numbers you need to see on one page
- Summary information with comparisons to budget, actual results, and key metrics
- How to build it - template to follow
- How to read it - critical numbers to review
Module 3: Common Wholesaler Financial Problems + How to Fix Them
- Keg and Pallet Inventory
- Process to count and reconcile to test accuracy
- Best practices to track and monitor keg and pallet assets
- Tools to use to make the process more efficient and effective
- Product Inventory
- Standard operating procedures with best practices for consistent and accurate inventory counts
- Review of Cycle Counts, Full Physical Inventory, Pros and Cons of each method
- Accounts Receivable Collection
- How to read and review the Accounts Receivable aging report
- Tactics to quickly identify potential collection issues
- Best practices to speed up collection and improve cash flows
- Product Gross Profit variances
- How to use trend analysis to identify problems with product margins
- Common problems that cause gross profit variances and how to fix them
Module 4: Wholesaler Financial Planning and Forecasting
- Financial planning best practices
- Plan outline: Timelines, to-dos, and deadlines
- Key questions and considerations
- Financial planning pitfalls to avoid
- How to build the wholesaler financial plan with models and examples
- Sales forecast and gross profit plan
- Operating expense plan
- Capital expense plan
- Loan schedules and debt plan
- Tactics to train department managers
- Proven training methods to enable managers to take financial responsibility for their department
- Reporting tools for review and analysis to ensure cost center budgets are properly monitored
Module 5: Wholesaler Cash flow planning
- Cash flow management best practices
- Techniques to keep cash management front and center
- Daily/weekly practices and cash flow routines
- Strategies to create a financing plan
- Drivers of wholesaler cash flow
- Inventory
- Accounts receivable
- Accounts payable
- Capital expenditures
- Debt payments
- Scorecards to track and measure key cash flow metrics
- Inventory days on hand (DOH)
- Days sales outstanding (DSO)
- Average days to pay
- Return on investment (ROI)
- Debt service coverage ratio (DSCR)
- 3-Step system to improve wholesaler cash flow
- How to identify where and when cash leaves the business
- Techniques to insert yourself into the cash flow process
- Tools to review past spending and make adjustments
Wrapping things up: Final Exam and Action Items
- Wholesaler Financial Training Final Exam
- Recap of lessons learned, action items, and next steps
