Distillery FAQ

Most distilled spirits plants file three operational reports monthly (production, storage, processing) and an excise tax return semi-monthly. Smaller producers may qualify to file the excise return quarterly or annually based on tax liability.

The excise return is due no later than the 14th day after the return period closes, but if that day is a weekend or holiday it moves to the preceding business day, the opposite of most deadlines.

One US liquid gallon of spirits at 100 proof (50% ABV). Proof gallons = wine gallons times proof divided by 100. It is the unit the TTB uses to measure and tax spirits.

Yes. Producing distilled spirits in the US requires a federal Distilled Spirits Plant permit from the TTB. There is no home-distilling exemption.

Spirits in bond have not yet had excise tax determined; tax becomes due when they are removed from bond. Tax-paid spirits have had the tax determined.

The spirit lost to evaporation during aging, roughly 2 to 6 percent per year and 30 to 40 percent over a long maturation, more on upper floors and in hot, dry climates.

No more than 125 proof (barrel-entry proof), and it must enter new charred oak. Most producers fill at or near the limit.

Temperature and airflow vary by floor and position, so two barrels filled the same day can lose different amounts and develop differently. Upper floors typically run hotter.

Re-measuring a barrel's volume and proof during or at the end of aging, so loss and value are based on real measurements rather than estimates.

Include direct materials, the barrel, burdened labor, overhead, the carrying cost of years of aging, and the angel's share, then spread it over the proof gallons that survive evaporation.

The evaporated spirit was made from grain you paid for and aged at your expense, so it raises the true cost of every proof gallon that remains.

Not necessarily. A distillery-specific system can include the general ledger, AP, AR, and costing tied to production, so the books reconcile to the barrels instead of living in a separate tool.

A pot still distills in batches for a heavier, more flavorful spirit; a column still distills continuously to high proof for a cleaner, lighter spirit. Many distilleries use one or a hybrid.

The fractions of a distillation run: heads (early, volatile, cut away), hearts (the clean spirit kept), and tails (late, heavy, cut away and often redistilled).

The grain recipe for a spirit, expressed as percentages. Bourbon must be at least 51% corn; rye whiskey at least 51% rye.

Track barrels and inventory, automate TTB and excise reporting, calculate true cost per barrel, and handle the accounting, ideally in one connected system so data entered once is correct everywhere.

Some vendors price per barrel or per seat, so cost rises as you grow. Flat pricing keeps software cost predictable as production scales.

Yes. Spirit Sight imports barrels, fills, lots, and mashbills from spreadsheets, DRAMS, and Whiskey Systems so your history moves with you.