ACCOUNTING FOR RESTAURANTS
Operating a restaurant is a dream for many, but there is a lot more to it than meets the eye. There are far more restaurants that fail than succeed, and that’s frequently because entrepreneurs spend more time focusing the daily operations of the business rather than on the accounting and tax side. Though it is not the flashy side of the business, accounting and tax is just as important as your food prep, especially with the typical narrow profit margins seen in the restaurant business.
To make your success more likely, take the information provided below to heart. Even better, get professional assistance from our office.
The most important thing to do is hire an accountant if you don’t know what you’re doing when it comes to restaurant bookkeeping – and preferably one who has specific experience in food and beverage accounting. The more your bookkeeper knows about the specifics of cost of goods sold, front-and-back-of-house operations and inventory management, the better.
Select an Online Point-of-Sale system
Retail operations have been transformed by state-of-the-art point-of-sale systems that tie every aspect of the business together. A robust program will do far more than generate receipts or place orders with the kitchen: it will also help with inventory management and tie into your sales reporting.
Setting up and using QuickBooks that has been set up specifically for you will provide you with the financial information to make good financial decisions. Setting up a chart of accounts that will track assets, expenses, liabilities, revenue, and equity, then break those categories down further into specific areas that are most important for you to keep track of is very important.
Food businesses have many different metrics that need to be tracked so you can have a clear picture of what is happening, where things are working well and what needs to be improved.
Contact us to help you with your accounting and tax preparation.
Call 256-489-1478 or click here to schedule a 15 minute consultation.
For more accounting resources, click here.