One of the most critical components of running a successful restaurant is having practical accounting. Because restaurant profit margins are razor-thin, it’s crucial to maintain a close check on restaurant accounting services.
Bookkeeping is an often overlooked component of restaurant management. Unfortunately, it’s difficult to catch up on your restaurant accounting after you’ve fallen behind. The restaurant industry’s profitability is too narrow to allow your bookkeeping to fall behind. If you don’t keep a close eye on your finances, it may be too late to correct problems when you notice them.
Selecting proper restaurant accounting solutions can help you avoid the complexities of restaurant accounting and effectively control your food expenditures. The majority of these systems contain financial software and point-of-sale (POS) systems to aid inventory management and transaction processing.
This article will explain the basics of how a skilled accountant may assist you in developing a reporting and growth strategy.
It’s essential that the records are already up-to-date for an eatery with a qualified accountant or simply searching for tax savings for restaurateurs.
It all starts with you, the restaurant bookkeeper. Whether you do your accounting or outsource your restaurant accounting, staying on top of your day-to-day bookkeeping is critical if you want to stay ahead of the competition and make a profit.
Keeping track of your dealings, starting with your income, is at the heart of all money planning. It refers to your sales in the context of restaurant accounting services. Fortunately, outsourcing has progressed significantly. Long gone are the days when your waiter had to roughly jot down the orders on a notepad and stick it up to the chef’s window. A good outsourcing platform can help you track the sales, properly categorize them into personalized tabs & reconciliation of daily POS sales with books.
Now while income is easier to track, as it comes in from mainly one source, the expenses are harder to track. This is because the expenses are incurred from various sources such as distributors, rent, and other bills related to the restaurant. It is absolutely necessary to be organized in this aspect as cluttered invoices and bills do no good to your business. Opting for a restaurant accounting outsourcing is the best option for every fast paced restaurant.
You could establish an inventory control system that optimizes food costs and reduces waste depending on the size of your business. You can also use the inventory to avert food supply constraints.
Keep track of your commodities and supplies to figure out how much food you have on hand and how much it costs daily.
To-Do list for bookkeeping in restaurants
1. Every day, keep track of sales using your POS
One of the first things you’ll need to learn is how to keep track of your sales. Many people feel that outsourcing for restaurants is an excellent way to keep track of everything.
Keep track of how many sales you make each day
For each day, make a separate sales entry (not monthly or weekly). You’re simulating how cash and credit card deposits arrive at the restaurant’s bank using this way. The majority of eateries take credit cards and pay the bill every day. As a result, each batch will see a credit card payment or deposits impact your checking account independently.
You must examine how money enters your bank account and set up your restaurant accounting services to reflect that activity.
Make a sales report with the information you’ve gathered
You’ll need to create a report that summarizes your daily sales to keep track of them.
A daily sales summary includes the majority of restaurant POS systems. If you want to tweak the report to receive more detailed information, you’ll have to engage with your POS system to do so.
- Make a sales journal daily
Establish a daily sales journal entry and a memorized purchase after you get a sales summary. Comparing profit and loss to past periods and years might also provide insight into how things are doing financially. Financial reporting in restaurants can mean the difference between winning and losing.
2. Take advantage of accounting software
No matter what accounting software you opt for, remember that it must be personalized or at least best fitted for your business. This means that you should be able to simplify the data entry tasks, customize the invoices, freely track the regular incomes and expenses, and much more. Remember that you should be able to access your statements and data anytime and anywhere.
Doing your payroll leads to an increased risk as a business person. The penalty and charges you may get charged if you report your payroll taxes erroneously or late might be substantial. If you do not outsource your payroll to an accounting firm, you get exposed to many risks.
Payroll outsourcing is a cost-effective and essential solution for ensuring consistent and dependable paychecks and accounting.
Every small business should use restaurant accounting outsourcing for payrolls.
Preparing restaurant payroll can be difficult due to irregular work hours, multiple roles, and various pay kinds. It’s ideal to outsource your payroll or use payroll software to automate the process.
4. Create a chart of accounts
Now coming to the next step, you need to properly organize the accounting system. What does this mean? You have to prepare a chart of accounts. On the chart, you need to chalk out the resources, debts, expenses, revenue, and the owner’s capital. While it is not limited to those categories, it is best to start from the foundation and create more specific categories moving up. This will help you evaluate the cash flows within the business.
If you don’t use financial statements in your restaurant accounting services, you’re blindly running your business. With the food industry’s razor-thin profitability, it’s critical to review your financial data frequently.
Sales vs. prices of merchandise supplied ratios and labor ratios should get considered by restaurants.
One ratio that many restaurants should think about is the premium cost, which seeks to keep food, beverage, and labor costs between 60 and 65 percent of total sales.
Why outsource a restaurant accounting agency for your business?
It can be enticing as a business person to take on all of the responsibilities; however, outsourcing your restaurant accounting services will relieve you of the stress and liability, allowing you to focus on the growth and administration of your restaurant.
Many additional factors go into restaurant accounting services, such as the POS system you choose, inventory controls, theft prevention, and cash management. The easy actions outlined above, on the other hand, will lay the groundwork for a robust bookkeeping system. As your business grows, you’ll need to adapt your bookkeeping system to meet your changing needs.
CapActix Business Solutions is ISO 27001 certified company that offshores your accounting and taxation clients to streamline the process for your firm. Outsource your restaurant accountancy services and make your finance procedure smooth and efficient.