The Problem: Where Did All the Cash Go?
Many breweries rely heavily on the P&L and assume that if they’re profitable, cash will take care of itself.
But profit doesn’t equal cash.
Inventory purchases, debt payments, equipment upgrades, and timing gaps between sales and collections quietly drain the bank account.
Without understanding the statement of cash flows, brewery owners are often blindsided by cash shortages, even during their “best” months.
The Solution: Use the Cash Flow Statement as a Management Tool
The statement of cash flows connects the dots between profit and your bank balance.
It shows exactly how cash moves through operating, investing, and financing activities, and explains why cash increased or decreased during the period.
When paired with an understanding of the direct and indirect cash flow methods, this report becomes a powerful tool for diagnosing cash problems and making smarter decisions before issues become emergencies.
The Plan: How to Use Cash Flow Statements to Stay in Control
- Use the direct cash flow method for day-to-day clarity
Track actual cash collected from customers and cash paid to vendors, payroll, and taxes to see where cash is really going each week. - Separate operating, investing, and financing decisions
Distinguish between core brewery operations, growth investments, and financing choices so you can see which activities are strengthening – or weakening – cash flow. - Turn insights into action
Use what you learn to adjust purchasing, improve collections, manage inventory levels, plan capital spending, and forecast cash with confidence.
Do This Next
- Watch the short explainer video below: Cash Flow Problem and Solution
- Get the Brewery Profit Brief – weekly tips to improve brewery cash flow and profitability
