The restaurant’s owner will look at the sales and then the bottom line before closing the report.
Sounds familiar?
If only these two numbers are examined the true value of the report is diminished.
Good restaurant bookkeeping shouldn’t make owners more dependent on an accountant. They should feel more confident of their financials. You don’t have to be an accountant or stay up all at night filling out invoices. You need to understand the way profit has fluctuated and what’s happened to food and labor costs, and what questions should be addressed in the coming week.
This is the premise behind Bookkeeping Chef: automate the bookkeeping work that doesn’t require an owner’s time while giving restaurant operators better financial information that they can use.
Do Not Stop at the month-end Numbers. Begin with Weekly Numbers
Restaurants don’t operate on the basis of a monthly. Managers schedule labor this week. Chefs order food today. Vendors change prices now.
Bookkeeping Chef offers weekly flash reports on top costs and monthly financial statements.
Prime cost combines the costs of selling goods and labor two major sectors that can quickly move in restaurants. According to the data from Bookkeeping Chef, prime cost accounts for about 60% of sales in restaurants.
Imagine a situation in which sales aren’t even changing, but prime costs are growing. The percentage by itself does not offer the answer. This gives the person in charge an opportunity to conduct some study.
Did hourly work increase? Did you have overtime? The cost of food changed? An invoice from a vendor appeared unusually big? Did you notice any changes in your sales mix?
That is far more useful than identifying the same issue two weeks later.
Automate repetitive tasks
DIY bookkeeping does not have to involve manually transferring POS (point of sale) totals into spreadsheets.
Modern bookkeeping automation for restaurants can take care of a large portion of the repetitive movement of financial data. The service is able to integrate systems such as POS, QuickBooks payroll, vendor platforms and inventory management.
Automation isn’t the only goal.
This helps to cut down on the time spent on manual data entry. Additionally, it keeps financial records updated so owners can spend time on studying data, not collecting it.
This leads to a different style of bookkeeping for restaurants. technology is able to handle more mechanics while the owner remains involved in the financial aspects.
Ask more questions regarding P&L
A P&L can be a lot less intimidating when you don’t treat it as an accounting test.
Begin by looking at the sales. Next, examine the costs of production. Compare the food and drink performances. Look at the cost of labor. Look at operating expenses. and see what remains.
The importance of comparing periods.
When sales improve but profits do not, there is some variation between them. What did happen when prices for food went up? If the labor percentage changed in the past, look at sales and staffing activity. If a number looks strange, investigate rather than assuming the restaurant simply had a bad month.
Bookkeeping Chef sends monthly P&Ls in five working days. This allows owners to review recent performance without waiting for financial reports that usually arrive months after the close of an operating period.
Understanding is more important than speed when it comes to owners seeking bookkeeping solutions for restaurants.
There’s no need to do everything yourself when you make it DIY
You can find a balance between hiring someone to manage all of your financial tasks as well as being your own accountant full-time.
You could be a part of an owner of a business without having to perform every accounting task manually.
It could be as simple as utilizing automated system connections in order to keep the information flowing. However, it could be as complex and involved a study of the month’s P&L or even a review of a weekly Prime-cost Report.
Specialized restaurant bookkeeping can help in this manner by making sure the books are in order and helping the restaurant owner comprehend what they mean.
There is a good chance to end up with an accountant who is able to perform all the functions.
An owner can talk to the P&L regarding the company.
The Objective Is Financial Independence, Not More Reports
Restaurants already generate enormous quantities of data. A dashboard doesn’t always make sense.
Real value occurs when an operator is able to open an P&L report, and see that there is a change, and then go through the reports on prime costs.
Bookkeeping Chef’s strategy combines restaurant financial support, daily reporting, and automated bookkeeping for restaurants to achieve this.
Automate repetitive tasks. Review your prime cost every week. Learn the language used in your P&L.
You do not need to be an accountant.
You should be a successful owner who knows the financials of your own restaurant.