For restaurants and food-service/catering business owners, professional accounting and organized books are critical to efficient, waste-free operations. Naturally, between supervising the kitchen and strategizing new ways to improve the customer experience, you have little time to review finances and monitor metrics. If you’re a new business owner, you may not be sure of which metrics to track and their impact on your restaurant’s sustainability. This problem is easily solved by outsourcing your accounting to professionals who can perform financial analysis and help you improve operations and margins.
- Create a budget with not only day-to-day but also long-term plans in mind
- Calculate labor, food costs, bar costs and rent as a percentage of revenue
- Allocate charges (business versus personal) and manage credit card expenses judiciously
- Reconcile cash accounts weekly to know your exact cash balance at any given time
- Reconcile inventory more often to accurately determine the cost of goods sold
- Keep a tab on tips, debt and leases
- Make the most of tax deductions and legal tax-saving strategies
Monthly financial reports are essential for a restaurant business. A restaurant has many moving parts that require oversight, from operational and financial perspectives. A monthly report tracking key financial metrics provides the status quo on financial health, pinpoints issues that may potentially eat into profits down the line (ex: high turnover rate), and enables you to find opportunities to improve operations and wield a tighter control over finances.
Drop us a line today!
Whether you’re a new business seeking to outsource your accounting or an established service looking to improve your accounting function, we can deliver the results you want. Let’s start the conversation today.
Qaiser (Ali) Ali, PBA, BBA, BA (Hons)
Accounting, Finance and Tax Consultant | SAR Accounting & Tax Solutions