The owner of the restaurant looks at the sales and then the bottom line before closing the report.
Sounds familiar?
The report might be 100% correct, but if they are the only two figures that are being examined the bulk of its value is left unreviewed.
A good bookkeeping system for restaurants shouldn’t make proprietors more dependent on their accountant. It should help them become more confident in their own numbers. You don’t need to know every accounting rule and have to spend hours completing invoices. It is important to know what caused the change in profit as well as what happened to food and labor and which issues require focus next week.
Bookkeeping Chef’s ethos is to automate bookkeeping chores that do not require the attention of restaurant owners, while providing customers with more precise financial information they can use.
Don’t stop at month-end Numbers. Begin by calculating Weekly Numbers
While restaurants don’t operate according to a calendar, they must still have an P&L. Managers plan their labor for this week. The chef placed an order for food today. Vendors change prices now.
Bookkeeping Chef’s weekly Prime-cost reports are included with the monthly financial statements.
Prime cost includes price of the goods sold and labor. Both of these are major areas that are able to move quickly in restaurants. According to the data provided by Bookkeeping Chef, prime costs represent approximately 60% of restaurant sales.
Imagine a situation in which sales are barely changing however, the cost of prime services are growing. This percentage doesn’t provide an answer. The owner has an opportunity to conduct some investigation.
Was there an increase in the hours was worked? Was there overtime? Was the cost of food fluctuating? The invoice of a vendor was unusually high. Did sales mix changes?
That is far more useful than discovering the same issue several weeks later.
Automate repetitive tasks
DIY bookkeeping does not need to be done manually by transferring POS (point of sale) totals into spreadsheets.
Modern restaurant bookkeeping automation is able to handle much all the repetitive movement of financial data. It integrates various systems such as POS, QuickBooks payroll, vendor platforms and inventory management.
The purpose is not to automate for its own sake.
The goal is to eradicate manually entering data and to keep financial records current so that the owners are able to spend more time analyzing the data instead of trying to assemble it.
It provides a completely new bookkeeping system for restaurant establishments. Technology takes care of the mechanics and the owner stays engaged with the financial aspects.
Ask more questions about P&L
A P&L is less daunting when you stop treating it as an accounting exam.
Begin by looking at the numbers of sales. Next, look at the expenses needed to make the sales. Compare the results of beverages and food. Study the cost of labor. Go through operating costs and examine what’s left.
More importantly, compare periods.
If the sales rise but the profits don’t, there is a change between them. What changed within the business when food costs grew. Check the levels of staffing and sales activities in case labor percentages changed. If a number looks strange take a look instead of assuming the restaurant was simply having an unlucky month.
Bookkeeping Chef delivers monthly P&Ls on five days. This lets owners review the latest performance without waiting for financial statements which usually arrive months after the close of an operating time.
For those who are looking for bookkeeping restaurant solutions, speed is a must but understanding is the main purpose.
There’s no need to be a pro in case you do it yourself
You can find a medium between hiring someone to handle your entire financial functions and having your own personal accountant.
You could be a part of the business owner, but not have to do every accounting task by hand.
The process could be as easy as using automated system connections to ensure that the information is flowing. Or it could be as intricate and complicated a study of the monthly P&L or a look at a weekly Prime-cost Report.
Specialized bookkeeping for restaurants can help with this method by maintaining the books in order and helping the owner to know what they are.
This doesn’t mean the bookkeeper is able to perform all bookkeeping duties.
The owner should be able to sit down with the P&L and have a frank conversation about the business.
The objective is financial freedom Not more reports
Restaurants already generate massive quantities of data. A different dashboard won’t be as effective.
The most valuable thing is when an operator can look at a weekly prime-cost report and see that something has changed, then open the P&L and understand where to investigate further.
Bookkeeping Chef’s approach combines restaurant bookkeeping automation, weekly reporting, monthly P&Ls, and restaurant-specific financial support to make that possible.
Automate repetitive tasks. Review prime cost every week. Learn the language used in your P&L.
There is no need to become an accountant.
It is crucial to comprehend the financials of your establishment before you can become a proprietor.