The owner of the restaurant looks at the sales and then at the bottom line prior to closing the report.
Sounds familiar?
The report might be 100% correct, but if they are the only two figures to be reviewed, most of its value is being put to waste.
Good restaurant bookkeeping shouldn’t make owners more dependent on an accountant. They should feel more confident about their numbers. There is no need to spend the night completing invoices or be aware of every accounting rule. It is important to know how the profit fluctuated and what transpired with labour and food and which areas require to be addressed next week.
Bookkeeping Chef’s ethos is to automate bookkeeping chores that do not require the attention of restaurant owners, while providing users with better financial information that they can make use of.
Begin with the Weekly Numbers Instead of just the month-end
A monthly P&L matters, but restaurants don’t operate monthly. This week, managers plan their labor. The chef orders food today. Vendors change prices now.
Bookkeeping Chef offers weekly flash reports on prime costs as well as monthly financial statements.
The prime cost comprises two key areas that can be swiftly transferred in a food service establishment: the price of the food that are sold, as well as labor. According to the data provided by Bookkeeping Chef, prime costs account for around 60% of restaurant sales.
Imagine that sales barely grew, yet the primary cost increased. The percent by itself does not offer the answer. It gives the owner a reason to investigate.
Have the hourly wages increased? Was overtime a factor? Did food prices change? The invoice of a vendor was unusually high. Did you notice any changes in your sales mix?
This is much more helpful than having the same issue several weeks later.
Automate the repetitive Work
Self-bookkeeping doesn’t mean manually transfer of POS numbers into spreadsheets.
Automating bookkeeping for restaurants can assist in the repetitive movement of financial data. The service is able to connect systems like POS and QuickBooks, payroll vendor platforms, inventory and recipe management, and payment and AP tools.
Automating solely for the sake automated is not the aim.
It’s to cut down on manual data entry, and keep financial records current enough that owners can spend their time reviewing data rather than making it.
This creates a new model of bookkeeping in restaurants. The technology will take care of the mechanics, while the owner remains involved in the financial aspects.
Learn to ask the P&L Better Questions
When you stop treating a P&L as a type of test, it becomes less intimidating.
Start by analyzing the sales. Then look at the costs that are required to generate those sales. Compare the results of food and beverages. Consider labor. Go through operating costs and look at what’s left.
Check out the various periods.
Something between these two lines has changed if sales have increased, but profit has not. If food cost increased, inquire about what changed operationally. Examine sales and staffing levels to determine if the labour percentage has changed. Examine any figures that appear strange, rather than assuming that the restaurant was not doing well during the week.
Bookkeeping Chef offers monthly P&Ls finalized within five business days, allowing owners the opportunity to evaluate recent performance rather than receiving financial statements after the operating time has ended.
Speed is important, but the aim is to comprehend.
It’s not necessary to build everything.
It’s not necessary to become your own full-time bookkeeper to avoid handing over the whole financial responsibility to another person.
Owners can remain involved without manually performing each accounting job.
It could involve connecting to automated systems to maintain information flow through, examining a weekly prime cost report, or studying the monthly P&L and posing questions in the event of an unexpected change.
Specialized restaurant bookkeeping services can aid in this process by maintaining the book’s structure and helping the restaurant owner understand what the reports mean.
This doesn’t mean the bookkeeper is competent to handle all bookkeeping duties.
An owner can talk to a P&L regarding the business.
The Goal Is Financial Independence and not More Reports
Restaurants are a major source of data. A different dashboard might not be helpful.
Real value occurs when an employee can open the P&L report, recognize that there is a change, and then go through the prime-cost reports.
Bookkeeping Chef s approach combines restaurant accounting automation, daily reports, monthly P&Ls and special financial assistance for restaurants, making this process possible.
Automate repetitive tasks. Check your top costs each week. Learn to speak the same language as your P&L.
You don’t have to be a professional accountant.
It is crucial to know the financials of your establishment before you take over as the owner.