So, you’ve launched your alcohol or consumer packaged goods (CPG) startup, and things are taking off. Sales are rolling in, customers love your product, and you’re thinking about expanding.
But behind the scenes? Your accounting is way more complicated than your average startup.
✔ Inventory costs are piling up, but what actually counts as an expense?
✔ Excise taxes and compliance laws are giving you a headache.
✔ COGS (Cost of Goods Sold) is a mystery, and you’re not sure if you’re maximizing your deductions.
Sound familiar? You’re not alone.
The good news? You don’t have to figure this all out by yourself. As a trusted Austin, Texas CPA, we help alcohol and CPG brands get their numbers right so they can grow without the financial stress.
Let’s break it down.
1. Inventory & Production Costs: Why It’s More Complex Than You Think
For most businesses, inventory is simple: buy, sell, track what’s left.
For alcohol and CPG startups? Not so much.
You’re juggling:
- Raw materials & ingredients (hops, grains, bottles, labels).
- Production & labor costs (brewing, distilling, bottling, co-packing).
- Storage & distribution expenses (warehouses, third-party logistics, shipping).
Why This Matters:
- If you’re not tracking inventory correctly, you’re overpaying on taxes or miscalculating profits.
- Unorganized inventory = cash flow nightmares (hello, surprise shortages).
- You could be losing money without realizing it.
Pro Tip: A specialized CPA in Austin, Texas can help you set up inventory tracking that actually makes sense for your business.
2. Understanding COGS (Cost of Goods Sold) for Tax Deductions
COGS (Cost of Goods Sold) is a huge tax deduction for alcohol and CPG brands. But if you’re not tracking it right, you could be overpaying the IRS or underreporting profits—both are bad news.
What Counts as COGS?
✔ Raw materials – Ingredients, bottles, cans, labels, packaging.
✔ Manufacturing & labor costs – Brewing, fermenting, bottling, etc.
✔ Warehousing & storage fees – Where your inventory sits before it ships.
✔ Shipping & distribution costs – Getting your product to retailers or customers.
Why This Matters for Your Taxes:
- COGS reduces your taxable income which means less tax owed to the IRS.
- Misreporting COGS can skew your financials, making it harder to attract investors or secure funding.
Need help tracking COGS correctly? A small business CPA in Austin can make sure every dollar is accounted for without the stress.
3. Navigating Alcohol Tax Laws & Compliance (Yes, This Can Be a Nightmare)
If you’re in the alcohol business, compliance isn’t optional—it’s critical. Mess up your filings, and you’re looking at massive fines, delays, or even a shutdown.
What You Need to Track for Compliance:
- Excise Taxes – Alcohol is subject to federal and state excise taxes (aka, extra taxes just for alcohol sales).
- State & Local Regulations – Every state has different tax rules, licensing requirements, and filing deadlines.
- Alcohol Labeling & Reporting – You need to follow Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations to legally sell your product.
What Happens If You Miss a Deadline?
- Fines and penalties. (They’re not cheap.)
- Delays in getting the licenses and permits you need to expand.
- Worst case? Your business gets shut down.
Pro Tip: A tax advisor in Austin who understands alcohol compliance can help you avoid expensive mistakes before they happen.
4. Why You Need a CPA Who Specializes in Alcohol & CPG
Here’s the truth: Not all accountants understand the complexities of your business.
- Your average CPA might not know how to properly track inventory costs.
- They might not optimize COGS for maximum tax deductions.
- They likely don’t understand alcohol tax laws & compliance.
How Insogna CPA Helps Alcohol & CPG Brands:
- Inventory & COGS tracking – So your financials are always accurate.
- Excise & sales tax compliance – No missed deadlines, no surprise fines.
- Cash flow & profit strategy – Because knowing your numbers = better business decisions.
- Scalability planning – Helping you prepare for funding, investors, and expansion.
Thinking of growing your alcohol or CPG brand? A CPA in Austin, Texas who understands your industry can help you scale without financial roadblocks.
Let’s Get Your Numbers Right—So You Can Focus on Growth
You built your business with passion and hard work—don’t let accounting mistakes slow you down.
At Insogna CPA, we help alcohol and CPG founders:
✔ Set up accurate financial tracking from day one.
✔ Stay tax-compliant while maximizing deductions.
✔ Plan for growth and long-term profitability.
we’ve got you covered. Let’s do this!
Work with a CPA who understands your industry. Schedule a free consultation with Insogna CPA today!
Whether you need a small business CPA in Austin, an Austin, TX accountant, or expert guidance from one of the best Austin accounting firms,