You ventured into the restaurant and hospitality industry because of your passion to make tasty food and serve people. Well, it is a bold noble move. However, underneath cooking and serving lie complex responsibilities that can bring your business to its knees. Bookkeeping is essential to your success.
According to Neema Consulting Restaurant Booking Keeping accounting is an important aspect of the hospitality industry that is often overlooked because it is nerve-wracking for most restaurant owners to track and draw conclusions from the numbers. Nevertheless, every cloud has a silver lining. Here are proven steps that facilitate effective restaurant bookkeeping.
Master the Language
Let us be frank, most of us in the restaurant business are not trained, bookkeepers. The terms used may sound like new language. Although they are English, their meaning may be gibberish. Words like prime cost, black, profit and loss among many may get your head spinning.
Employ an Accountant
Employing an accountant to assist you to manage finances in your restaurant is wise. Accountants are trained and curtained to provide top-notch bookkeeping management. Even if you have a good grasp of the accounting process, a certified one breaks down the entire details for you to make informed decisions. Other than helping you make profits, accountants ensure you comply with all legal requirements.
Invest in high end Restaurant Accounting Tools
If you have an accountant or you do your day to day bookkeeping, restaurant accounting tools will make the process easy. Previously, tracking financials depended on columned ledgers. The complex overfilled digits on rows and columns were enough to kill the morale of a great accountant.
Currently, we have accounting software products that can be customized to suit every restaurant regardless of their sales margin, turnover, and location. Restaurant software will have the following:
- Food inventory cost
- Food sales
- Beverage sales
- Cashier summary
- Sales and cash receipt worksheet
- Operational expenses
- Break-even analysis for reports
Keep an eye on Sales
Most restaurant sales rely on credit cards. You are required to close the transaction every day for the company to process payment to your bank account. In most cases, you will have to do the deposits on a daily basis. Don’t fall into the trap of waiting for a full week to start processing and recording lump sums. By doing it daily, other aspects such as payroll and inventory are considered.
Pay attention to Expenses
The most effective way to make profits in your restaurant is by controlling expenses and boosting sales. You need to agree with vendors on when to bill and pay. It is important that you don’t keep bills piled up.
Outsource your Payroll
While you can do the payroll, there are two major benefits of outsourcing: liability and cost. Laws and regulations around payrolls change constantly. Remaining compliant requires constant monitoring. Additionally, payroll mistakes have devastating consequences hence prudent to pass the risk to another party.
If you need state of the art accounting products and services, contact Neema Consulting Restaurant Booking Keeping in New York City. We have over 15 years’ experience and a proven track record.