7 Easy Steps To Effective Restaurant Accounting

Restaurant Accounting
Restaurant Accounting

Despite the mystique and allure of the title jack-of-all-trades, most people know only a few things in a few niches. It pays to be comfortable and knowledgeable about a single subject over dabbling in a dozen.

Many professionals would rather focus on honing their skills than remembering to update calendars and fill out routine paperwork (unless that’s their profession). Restaurateur, as a title, covers more than just the cooking and decor of a restaurant. Even so, the process of restaurant accounting is often their least favourite element of the business.

They would rather be creating and offering top-notch service than thinking about the bills. This is why hiring a specialist Restaurant accountant might be very useful

Restaurant Accounting Advice

Restaurant Accounting
Restaurant Accounting

Day to day, even the unsavoury work still needs to be handled. This is as true in hospitality accounting as it is anywhere else.

Here are seven essential steps for tackling this onerous chore. 

1. Treat the Books Like Dishes

To remove some of the drudgery from the task, a restaurateur can think of the books the way they think of dishes. Each element must be in balance for the final product to impress.

Knowing the basic elements lets them plan accordingly and allot time and effort to each component. 

When the books are treated as a place to experiment and explore (provided the risks are understood) everything else becomes doable. 

2. Integrate POS

 Integrate POS
Integrate POS

A robust point of sale system makes gathering data easy.

It also speeds up ordering times and upgrades customer satisfaction. Managing orders through digital POS saves crucial time and at table confirmations ensure accuracy.

Table by table POS allow contactless payments that also ensure accuracy. 

3. Engage with the Cloud

Cloud Computing
Cloud Computing

While integrated POS speeds up the dining room, cloud computing enhances the bookkeeping. 

This makes data available day to day in remote locations and keeps a restaurateur in command no matter where they are. From processing payroll to checking the status of orders, cloud-based books provide more. 

4. Track Restaurant Expenses

quick books online

Speaking of orders, tracking expenses is crucial to accounting. If the only thing business knows is how much cash flow is leaving, they know enough to make changes and see places to save.

A list of expenses provide a black and white view of what is and is not necessary. Some things sound workable until the bill arrives. These can be tracked in the profit and loss statement.

5. Accounting of restaurant Revenue

Restaurant Revenue

If tracking expenses is sobering, tracking revenue is the acid that softens the fat. 

Revenue is never a constant, so it’s best looked at in terms of trends and expectations. Tempering these expectations with experience is the subtlest part of bookkeeping. Pay attention to your profit margins especially your food and beverage costs.

6. Generate Forecasts

Sales Forecasts
Sales Forecasts

Generating forecasts is a lot like printing up a menu. It shows all of the options and, over time, it shows what needs to be changed and what stalwart options sustain.

Staying on top of the finances allows a restaurant to stay fluid in the changing weeks and seasons.

7. Outsource

Restaurant Bookkeeping
Outsourcing Restaurant Bookkeeping

A good chef knows what to focus their attention on. The rest of the kitchen, properly picked and trained, can be relied on to complete their jobs, allowing the chef to make the magic. 

Outsourcing bookkeeping, and especially payroll, free up time to make more important decisions. 

Trusting the experienced team at KG Accountants to keep the backroom tidy.

Arrange a FREE initial consultation.

0207 953 8913

How we can help

Call us today on 0207 953 8913 or complete our enquiry form in order to book a FREE initial consultation.

Categories: Restaurant accounting, Restaurant and bars

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