Creameries

Churn Your Profits: Specialized Accounting for Creameries

We’re dedicated to helping you make the best Wisconsin cheese by churning your profitability instead of milk! Uncover your dairy business’s true profit potential by eliminating inefficiencies and financial roadblocks while leveraging cost-saving opportunities.

Accounting for Creameries

Your Dedicated Financial Partner

We provide the freedom you need to focus on what you do best. Without an accounting staff, local creamery owners often find themselves juggling multiple roles, including managing finances.

At MBE CPAs, we offer personalized, hands-on financial guidance tailored to the unique complexities and goals of your creamery. Think of us as your in-house team, seamlessly handling all aspects of your accounting needs so you can focus on making the best cheese.

Churn Challenges into Profitability

Creameries face internal complexities such as inventory management and cost accounting, as well as external pressures like price volatility and food safety standards. These challenges can impact your profitability, but with expert guidance, they can be transformed into opportunities for growth.

Wisconsin Manufacturing & Agricultural Credit

Inventory Accounting for Maximum Financial & Tax Benefits

Maintaining Optimal Inventory Levels

Effective inventory management is crucial for ensuring your creamery meets customer demand while maintaining the freshness and quality of perishables like milk and cream.

At MBE CPAs, our accountants will help you analyze demand, make accurate projections, and identify ideal reorder points to avoid spoilage, control costs, and maximize operational efficiency.

Inventory Costing for Reduced Tax Liability

Selecting the right inventory costing method is critical for accurately capturing the movement of short-shelf-life products like milk and cream and minimizing your tax liabilities. Whether you choose first-in-first-out (FIFO) or last-in-first-out (LIFO), our experts at MBE CPAs will help you explore your options and understand the advantages and disadvantages of each, ensuring you make the best decision for your business.

Thriving Amid Milk Pricing Volatility

As a dairy plant operator, you produce a range of milk-sourced commodities, including butter, cheese, and whey. As each of these products is classified differently under the Federal Milk Marketing Orders (FMMO), you contend with milk’s complex and fluctuating costs based on its end use. This pricing structure sets minimum prices paid to dairy farmers, affecting your production costs and complicating cost management. Our team of experts will analyze your specific situation and develop customized strategies to optimize your cost structure, improve operational efficiency, and ensure healthy profit margins despite market volatility.

Unlock Tax Savings and Improve Your Bottom Line

Investing in your creamery’s processes and people often leads to substantial returns. However, if recent spending has you worried about profitability, it’s time to explore available tax credits that can offset these costs.

In our tax planning process, we’re dedicated to reducing your tax burden because every dollar saved strengthens your bottom line. We stay up-to-date on all available federal and state tax credits for Wisconsin creameries, ensuring you benefit from every possible saving. Let us identify the credits you qualify for and handle the entire process, maximizing your savings.

  • Research & Development Tax Credit
  • Jobs Tax Credit
  • Wisconsin Manufacturing & Agricultural Credit
  • Business Development Tax Credit

Financial Analysis and Cost Accounting

Fluctuations in milk costs and other raw materials stretch profit margins thin and affect cash flow and liquidity. By reviewing your financial statements and performance, we can draw up trends in your expenses and develop budgeting strategies. This includes identifying cost-saving opportunities and expenses eligible for tax deductions. Additionally, we can guide you on how to optimize production processes and manage financial resources efficiently.

Risk Management Strategies

Price fluctuations are out of our control, but we can soften the blow through risk management. We will assess the feasibility of strategies like hedging instruments and facilitate scenario analysis to anticipate and plan for potential volatility in milk prices.

Pricing Strategies for Market Competitiveness

We will work on developing pricing models that align with your dairy products’ distinct classifications under the FMMO while also prioritizing profitability and market competitiveness. Here are some of the things we can do:

  • Recommend price adjustments
  • Calculate break-even points based on different milk prices
  • Determine optimal pricing structures

Meeting Cash Flow Needs

Food production is a capital-intensive industry that constantly needs to adhere to food safety standards and drive operational efficiency. As such, creameries must maintain consistent cash flows and secure access to capital for vital investments in machinery, tools, and significant expenditures.

a man holding galas of milk

Financial Statement Preparation to Demonstrate Financial Stability

Your financial statements are the best representation of your financial stability and performance. We will organize your financial data, balance sheets, and income statements, making sure they meet potential lenders’ stringent requirements. This will position your business for favorable lending terms and opportunities for growth.

Access to Capital through Debt Management & Financing Solutions

Creameries seek outside capital to support substantial investments without fully considering their financial implications. We offer guidance in reducing financial strain by analyzing your debts and exploring loan structuring and refinancing. After addressing these aspects, we will review accessible and cost-effective financing choices.

Financial Forecasts & Projections for Informed Decisions

Effective decision-making demands a comprehensive understanding of your creamery’s financial situation. Our forecasting tools enable us to provide precise and timely financial information to prevent delayed decisions. We offer insights on future trends and the impact of business decisions, which will help us align your strategies accordingly.

Keeping Up with Food Safety and Industry Regulations

Local creameries are required to obtain various licenses for processing different milk products, in addition to adhering to regulations mandated by the Food Safety Modernization Act (FSMA). Therefore, it is crucial for creameries to have robust support systems in place to ensure continuous compliance.

Specialized Guidance on Regulatory Compliance

We offer specialized consulting services to help you understand and comply with the rules and regulations governing dairy production. We’ll also draw up a roadmap on licensing, safety protocols, and operational best practices so your creamery maintains compliance and upholds the highest standards of food safety.

Timely & Relevant Dairy Industry Updates

There’s always something to watch out for – new industry regulations, tax updates, economic challenges, and supply chain issues affecting the industry. We deliver timely and relevant information and provide an accessible venue to contact your service team whenever you have questions or concerns or need support for your unique situation.