What You Need to Know About the Brewer’s Report of Operations

And How Technology Can Help

Making beer is fun. Finding new hops that you love, pouring the perfect pint, and hearing a customer say your brew is their new favorite — unmatched! But there’s something else that you need to do to stay compliant and continue brewing — TTB reporting. As you probably, these tedious forms can be stressful, and sometimes it’s hard to know whether you’re filling them out correctly. We’re here to help.

One form in particular you might be familiar with is the Brewer’s Report of Operations (or BROP, as it’s commonly called), which is a required form for running your brewery. Essentially, it tracks everything you produced, sold, lost, and received in a certain time frame (either monthly or quarterly). You are required by law to submit this form to the TTB to be in good standing and avoid fines.

Checklist: Before You Get Started

For a form as complex as the BROP, you should spend an adequate amount of time preparing so you don’t have to stop to find important information in the middle of filling out the form. Here’s what you should have on hand:

  • EIN number
  • Registry number
  • Name and address of your brewery — exactly as it appears on your Brewer’s Notice
  • A copy of the completed Form 5130.9 you submitted for the previous month/quarter
  • Documentation to provide sufficient support for amounts reported on the form

What Else Should You Know?

Figure out how frequently you need to fill out the BROP. There are two versions — Form 5130.9 and Form 5130.26. Form 5130.9 is submitted monthly, and Form 5130.26 is submitted quarterly. It all depends on the dollar amount of taxes you were responsible for in the previous calendar year and how much you anticipate paying in taxes this year. According to the TTB, if you were responsible for less than $50,000 in taxes last year and don’t expect to pay more than that this year, you only need to submit the form quarterly. If you paid more than $50,000 in taxes last year and expect to maintain or increase that amount this year, you need to submit the monthly form.

Another tip? Don’t wait until the last minute to file. No matter how frequently you plan to submit, your form must be in by the end of the 15th day following the end of the reporting period. You can mail the form to the TTB or fill it out online.

Other Resources

Other helpful info to have on hand:

The Form

If you’ve prepped well, the form should be pretty straightforward. We recommend working up to these numbers as you brew — keep track of your losses, production, inventory, and other elements relevant to your BROP as you work through the month or quarter. This includes all beer that was produced, lost, sold, bottled, racked, etc. The categories differ slightly for each form, so be sure to check out every line before you begin your recordkeeping.

Take Advantage of Technology

We recommend that you take advantage of technology when it comes to complex TTB forms — why not use all of the tools available to you?

Luckily, Ekos hosts a variety of TTB reporting capabilities. We work with breweries that save hours upon hours every month utilizing Ekos’s easy-to-use, pre-filled TTB reports. These features will do the heavy lifting for you with automatically generated reports and inventory tracking at the touch of a button. 

Before Ekos, Southern Grist Brewing was working with multi-tabbed spreadsheets to reconcile their finances manually. Even worse, they were entering their tax reporting numbers by hand. Founder Jamie Lee said that when a friend suggested Ekos, they leapt at the opportunity. “Anything was better than a spreadsheet,” he said.

​​“Ekos saves us time and money from TTB reporting and state tax compliance —  it’s much easier to manage with the wealth of data that I can pull out of Ekos.”

Jamie Lee, founder of Southern Grist Brewing

If you’re interested in cutting down the number of hours you spend on TTB reporting every month, reach out to our sales team today.

DISCLAIMERS: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Furthermore, the information provided on the Ekos-generated Brewer’s Report of Operations is generated using data within Ekos and is our understanding of what should be provided. Please consult a tax representative or the TTB directly for specifics.

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Written by Jackie Park