The restaurant owner looks at the sales before focusing on the bottom line before closing the report.
Does this sound familiar to you?
If only these two numbers are examined the true value of the report is not realized.
The proper bookkeeping of a restaurant shouldn’t force owners more dependent on their accountant. It should help them become more confident in their own numbers. You don’t need to know each accounting rule, or spend nights entering invoices. It’s essential to know what caused the change in profit, what happened with the labor and food items and what questions require focus next week.
This is the premise Bookkeeping Chef’s mission: to Automate the bookkeeping task that doesn’t require an owner’s time while giving restaurant operators better financial information that they can actually utilize.
Don’t stop at month-end Numbers. Start by calculating Weekly Numbers
Even though restaurants do not operate on a calendar month, they must still have an P&L. The managers this week plan their schedules. The chef orders food today. Vendors change prices now.
Bookkeeping Chef offers weekly flash reports on costs of the day together with monthly financial reports.
Prime cost includes price of the goods sold and labor, two sectors that can quickly move in restaurants. Bookkeeping Chef’s supplied information notes that prime costs generally comprise roughly 60% of sales in restaurants.
Imagine a situation in which sales are barely changing and the costs of primary production are rising. This number does not give an answer. The owner has an opportunity to conduct some digging.
Is the hourly wage increasing? Did overtime occur? Did food prices change? The invoice from the vendor seemed oddly large? Changes in the sales mix?
It’s better to know about the problem now as opposed to later.
Automate repetitive tasks
DIY bookkeeping doesn’t have to be a manual process of transferring POS amounts into spreadsheets after service.
Automating the bookkeeping processes of restaurants will eliminate routine data movement. The service integrates systems like POS, QuickBooks payroll, vendor platforms, and inventory management.
The purpose is not to automate for its own sake.
The aim is to reduce manually entering data and to keep financial records current so that the owners are able to spend more time looking over the data instead of trying to assemble it.
It provides a completely new accounting model for restaurant establishments. Technology handles the mechanics and the owner stays engaged in the financial aspect.
You can also ask more questions about P&L
If you stop thinking of a P&L as a test it becomes less intimidating.
Start by reviewing the number of sales. Then, you can look at the cost of production. Compare food and beverage performance. Consider labor. Continue to reduce your operating costs.
Also, you should compare the time periods.
If the sales increased, but the profit wasn’t, something else between those two lines has changed. Ask what changed within the organization if food costs increased. Examine sales and staffing levels to determine if the labor percent has changed. Find out if a figure seems odd, rather than assuming that the restaurant went through an unfavorable time.
Bookkeeping Chef provides monthly P&Ls on five days. This lets the owners look at recent performance without waiting for financial statements that often arrive months later than the conclusion of an operating time.
Understanding is more important than speed for owners seeking bookkeeping solutions for restaurants.
It’s not necessary to do everything.
There is a middle ground between handing the entire accounting function to a third party and being your own full-time bookkeeper.
Owners can be still involved in the accounting process, without having to perform every task by hand.
That might mean connecting to automated systems to keep information flowing by reviewing a weekly prime-cost report, or studying the monthly P&L and asking questions when something moves unexpectedly.
Specialized bookkeeping for restaurants can help in this way by keeping the books in order and helping the owner to be aware of what they represent.
There is a good chance that you will end up with an accountant who is able to perform all the functions.
An owner can talk to the P&L about the business.
The Goal Is Financial Independence, Not More Reports
Restaurants already generate massive amounts of data. A different dashboard might not be helpful.
The true value is when an employee can look at the weekly report of prime cost and recognize that something changed, then open the P&L and know the best way to look into it.
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 costs every week. Be aware of the language used in your P&L.
You do not need to be an accountant.
It is essential to be aware of the financials of your establishment before you are able to become the proprietor.