The restaurant’s owner examines the sales and then the bottom line before closing the report.
Do these sound like familiar?
The report might be 100% accurate, but if those are the only two numbers that are being examined the majority of its value is left unreviewed.
A well-designed restaurant bookkeeping system shouldn’t increase the dependence of owners on accountants. They should have confidence in their own numbers. It’s not necessary to spend in the dark putting together invoices or knowing every accounting principle. You should know the way profit has fluctuated as well as what’s changed with labor and food costs, and the questions that should be addressed next week.
Bookkeeping Chef is a computer program that helps automate bookkeeping so owners can spend more time working on other tasks while receiving more clear financial reports.
Start With the Weekly Numbers Don’t Just Focus on Month-End
Although restaurants are not operating in a calendar month, they still need to have a P&L. This week, managers are planning their labor. Chef orders food today. Vendors change prices now.
Bookkeeping Chef’s weekly Prime-cost reports are published alongside the monthly financial statements.
The prime cost comprises two crucial areas that are easily transported in a restaurant establishment: cost of goods sold, and labor. According to data provided by Bookkeeping Chef, prime costs represent approximately 60% of the sales at restaurants.
Take a look at a scenario where sales are barely changing and the costs of primary production are growing. The percent by itself does not give the answer. It provides the person with an opportunity to research.
Have the hourly wages increased? Was there extra work? Food costs changed? A vendor’s invoice was abnormally high. Did the sales mix change?
It is much better to discover the issue now rather instead of waiting until later.
Automate repetitive tasks
DIY bookkeeping doesn’t have be a manual process of transferring POS totals to spreadsheets following service.
Automating the process of bookkeeping for restaurants can reduce routine data movement. The service can connect to systems such as POS as well as QuickBooks, payroll vendor platforms inventory and recipe management as well as AP/payment tools.
Automatization is not the aim.
This is done to reduce the amount of manually entering data. This also helps keep financial records updated so owners are able to focus on reviewing information, rather than gathering it.
It’s a totally new bookkeeping system for restaurants. Technology handles the mechanics and the proprietor remains involved in the financial side.
Learn to Ask the P&L Better Questions
A P&L becomes much less intimidating when you stop thinking of it as an accounting test.
Start with sales. Next, look at the expenses necessary to achieve the sales. Compare the performance of drinks and food. Check the cost of labor. Move down through operating expenses and then look at what’s left.
More importantly, compare periods.
If sales increase but profits do not, there is a difference between the two. What was the result when food prices increased? Check sales and staffing to see if labor percentage has changed. If you notice a strange number, investigate rather than assuming that the restaurant had poor month.
Bookkeeping Chef offers monthly P&Ls finalized within five business days. This provides owners the opportunity to evaluate recent results rather than receive financial statements long after the operational period has ended.
For owners searching bookkeeping restaurant solutions, speed is useful but understanding is the bigger objective.
It’s not necessary to DIY everything.
You can find a comfortable middle between having someone manage your financial needs and being your own accountant full-time.
Owners can still be involved in the accounting process, without needing to complete every task manually.
This could mean using automated systems to maintain the flow of information, examining an annual P&L and weekly reports on prime costs or asking questions when there is an unplanned event.
The specialization in restaurant bookkeeping can assist with this approach by maintaining the books in order and helping the owner to know what they are.
It is highly unlikely that you’ll get a bookkeeper who can perform all the duties.
An owner can sit down with the P&L and engage in a thoughtful conversation about their business.
The goal is financial security and not the need for more reports
Restaurants are a major source of information. Dashboards don’t always make sense.
When an operator is able look at the weekly report on prime costs and see that something is different, they can then look into their P&L to see what needs an investigation.
Bookkeeping Chef’s method combines restaurant bookkeeping automation weekly reporting along with monthly P&Ls and specific financial assistance for restaurants for making this possible.
Automate repetitive work. Examine your prime costs each week. Learn the language of your P&L.
You don’t need to be an accountant professional.
It is crucial to know the financials of your restaurant before you take over as the owner.
