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
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
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
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
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
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
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.
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.
Trusting the experienced team at KG Accountants to keep the backroom tidy.
0207 953 8913