Food & Drink Businesses. Nine FAQs for your accountant

food drink faqs

At DRG Chartered Accountants, we work with many challenger consumer brands. Here Oliver Burton, our food and drinks specialist, answers some questions frequently asked by our fmcg entrepreneurs.

Should I consider producing a financial model?

We believe an integrated model (profit and loss, balance sheet and cashflow) is a great tool for managing a business and planning for growth, particularly working capital and cash flow management. We work with many of our clients to build two to five year projection models.

What monthly management information should a food and drinks business produce?

There is no one answer to what financial information a business requires and the answer will depend on the type of business and the stage it is at. However, we typically recommend at least a monthly profit and loss and balance sheet together with detail by channel / SKU plus other relevant KPIs.

How do I account for my direct to consumer sales?

Whether you are selling via an online marketplace such as Amazon or via your own website, you will need to use their financial reporting to correctly account for the revenue and fees deducted at source. Alternatively, you can look at using a bridging app to connect directly to your accounting software.

What accounting software do you recommend?

Typically, we work with Xero which is designed to be used by non-accountants. Xero is cloud based allowing for real time collaboration between you and us. 

What other applications would you recommend looking at?

Depending on your specific needs, we work with ReceiptBank, Hubdoc, Unleashed, Futrli, A2X, GoCardless plus many other useful integrations.

What are the key financial compliance requirements of a limited company?

On an annual basis, companies are required to file year-end financial statements, a corporation tax return and a confirmation statement. VAT returns are typically required on a quarterly basis with payroll and auto enrolment filings each month.

How do I claim R&D tax credits?

R&D costs can be reclaimed as part of the corporation tax return. We work with our clients to identify relevant costs and produce the technical justification for the reclaim.

How will you help me when raising funds?

We support our clients throughout the fund raising process. on a wide variety of the area such as investor presentations, investment memorandum, capitalisation tables, SEIS / EIS compliance and filings and Companies House filings.

What is the value of my business?

Valuing a business is not a science and ultimately the valuation for the purposes of raising capital will be based on discussions and negotiations with potential investors. However, we can advise on appropriate valuations based on our experience and knowledge of the market.

If you have any further questions, please do not hesitate to get in touch with our food and drinks specialists, Oliver Burton or Michael Wood. We would be happy to discuss your business and explore ways in which we could help.

Further information

DRG's accounting services for food and drinks businesses
See what our food and drinks clients say 
Download our brochure "Accountancy services for food and drinks businesses"

DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.

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Donald Reid Group
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"My company has used DRG for a number of years. They are proactive and efficient with all aspects of their work. They keep on top of our tax and accounting requirements, and help with the development of our business strategy.

We view DRG as a key supplier and crucially a partner and would highly recommend the firm – in particular to other fast growing businesses."

David Folkman, Director

"I’ve worked with a number of accountants over the years and have never found another company who offers the same level of care, support and professionalism. They’re always on hand to offer advice and guidance, above and beyond the service that I pay for. I would recommend them wholeheartedly."

Joe Hill, Director

"Very supportive and friendly company from day one."

Outdoor Academy

"I have always worked as an employee so when I decided to set up my own business, I did not know where to start. DRG took the time to explain how working as a sole trader would be more beneficial to me setting up a limited company (which I had always thought was a requirement for running a business). They gave me practical advice on the records I need to keep as well as general guidance on setting up my business and helped me claim a large tax refund after my first year of trading."

Sole Trader

"I have been a client through a number of different ventures with DRG since 2007. They have proved the benefits of a local firm with Big 4 experience in providing sound business and tax advice by being accessible, having in-depth knowledge of my business and able to form good working relationships at different levels with me and my staff. We also enjoy the benefit of their excellent accountancy and payroll services. I couldn’t recommend them more highly."

Paul Dunn-Sims, Halcyon Home Care

"I have been extremely impressed with the service level and attention to my business."

Sherwood Event Services

"DRG provide excellent services to Extrinsica Global that enable us to focus on our priority – growing the business."

Extrinsica Global

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Design & Technical Management

"We have used DRG since our incorporation. They have supported our development providing sound business advice on top of our accounting requirements.

They are proactive and helpful in responding to queries and I would recommend them to any prospective client."

Rob Farrow, Alchemy Fireworks Ltd

"Daniel and his team at DRG provide a friendly service and are always able to explain issues in clear terms."

Kensington Communication Consultants

"An excellent service, good advice – we would recommend."

Burnham Garage